Shell Share Discussion Threads

[waldron] 02/2/2018 16:54

Dutch Gas Goals Rocked By Earthquakes
By Cyril Widdershoven - Feb 02, 2018, 9:30 AM CST Rig

Dutch gas dreams have ended with a bang after Dutch independent regulator SodM presented its recommendation to the Dutch government to cut existing natural gas production at the Groningen field from 21.6 bcm to a historical low level of 12 bcm.

The Netherlands (until the mid-1990s, one of the world’s top natural gas producers and exporters), holding an ambition of becoming the main European gas roundabout, can now start to lick its wounds, as not only gas production at Europe’s largest continental gas field is set to end soon, but the government budget is also hit.

Global markets and energy transition can’t be blamed, but only a simple physical phenomenon: earthquakes. The latter hasn’t only shaken houses, but has also broken down the defensive walls of international oil giants Shell (NYSE:RDS.A) and ExxonMobil (NYSE:XOM) and the Dutch government. A popular uprising in the Groningen Province (Northeast Netherlands), combined with an offensive of green movements, has built up a momentum strong enough to end the Netherlands’ pivotal role in global gas.

Still, the real discussion is far from over. Not only does the Dutch government need to assess the SodM recommendations, but it also must set up a rational and feasible strategy to wean the Dutch economy and its citizens from natural gas in the coming years. This will be an enormous task.

Removing natural gas from Dutch society is shaking its societal structure, as more than 7 million households are on the gas network, and almost all industries in the Netherlands rely on gas supplies. At the same time, due to the fact that Groningen gas opened up the European continent to a gas-based future in 1953, existing long-term contracts with customers in Germany, Belgium and the north of France have still to be fulfilled. The government and its main stakeholders, Gasunie en GasTerra, will have to discuss a reduction in export volumes and contracts the coming years. Some even have called to put a point on the horizon to end exports totally. The cost of this all will be enormous. After decades of a Dutch disease, an earthquake migraine is the only thing that is left.

Today, the reaction of Dutch minister of Economy Eric Wiebes was clear: he did not reject the recommendations of SodM, but reiterated that a timeframe for a production cut to 12 BCM is not yet available. He stipulated that he’ll do the utmost to do reach this goal, but based on rational assessments and what will be possible. In recent years, the Dutch government has already cut production several times, after earthquakes shook the region, damaging thousands of homes and buildings.

Related: Why Natural Gas Prices Just Tanked

For the government, the situation is very difficult right now. As the main shareholder of the Groningen gas concession, it’s legally bound to contracts and to provide security of energy supply. At the same time, as a party in the conflict, the government now also needs to solve the earthquake issue, and repair material and immaterial damages in Groningen.

The overall situation for the Netherlands has become a nightmare scenario. As the Dutch government has stepped up efforts for an aggressive energy transition plan, natural gas always has been seen as a transition fuel. The availability of cheap and secure gas supplies was one of the main cornerstones of this strategy. This fundamental factor, however, now is falling apart. Availability of Groningen gas could be threatened severely, while the government budget will be hit further.

At the same time, the cost of energy for Dutch companies and households will increase substantially. If pushing forward a further weaning of gas strategy in the Netherlands, as some political parties and NGOs are pushing for, is very costly. Reports have emerged that taking off a Dutch house from the gas grid and putting renewables as new source will cost between 12-28,000 euros. This excludes additional taxes on electricity, to counter subsidies and investments in renewables production and new grids in the country.

For the short term (5-10), looking at the financial costs of a quick kill of Groningen natural gas production, the only other option to smooth the energy transition is to continue gas usage — this time to be supplied by new gas import volumes from Norway, Qatar or Russia. However, Norway (pipeline) and Qatar (LNG) aren’t easy to put in place. But Russian gas supplies are available, and will increase even more due to Nord Stream 2.

Increased Russian gas supply is being considered by several parties in the Netherlands, Germany and Russia, as they’re already investing in Nord Stream 2, or even have former management in place at Gazprom. For the Dutch government and the European Union, however, it’s a big slap in the face. To acknowledge that their long-term strategy to diversify supply of energy to counter becoming dependent on Moscow has now been proven to be a farce, and will be a nightmare scenario. This however, will be undoubtedly the case in the next decade. Russia, threatened by more EU sanctions and in a conflict with the Netherlands regarding the MH17 airplane disaster over Ukraine, now will be the savior of the NW-European gas dependency.

Related: Goldman: Oil To Top $80 Within Six Months

Again, Dutch and European energy strategies and politicians are showing a lack of foresight that is above imagination. With a global gas glut, and new emerging gas exporters such as Egypt, Cyprus, Israel and Australia, diversification could have been put in place already for years.

Still, European arrogance and Dutch lack of urgency will now lead to renewed talks with the Russian Bear. Gas, the ultimate weapon of Russia to divide Europe, will be used again to support Putin’s influence. A Dutch gas field disaster could open up a new Pandora’s box. Nord Stream 2 and other Russian pipeline dreams will be discussed, but in a totally different spotlight.

By Cyril Widdershoven

More Top Reads From Oilprice.com:

[grupo] 02/2/2018 15:21

Royal Dutch Shell Plc 24.2% Potential Upside Indicated by Barclays Capital

Posted by: Amilia Stone 2nd February 2018

Royal Dutch Shell Plc with EPIC/TICKER (LON:RDSA) has had its stock rating noted as ‘Reiterates217; with the recommendation being set at ‘OVERWEIGHT217; this morning by analysts at Barclays Capital. Royal Dutch Shell Plc are listed in the Oil & Gas sector within UK Main Market. Barclays Capital have set a target price of 3000 GBX on its stock.

[grupo guitarlumber] 01/2/2018 15:36

By Sarah Kent

LONDON-- Royal Dutch Shell PLC more than tripled its profit in 2017 on a rebound in crude-oil prices, demonstrating how deep cost cuts are making energy companies almost as profitable as they were during the boom years of $100 a barrel.

The British-Dutch oil giant said Thursday its 2017 profit on a current cost-of-supplies basis--a number similar to the net income that U.S. oil companies report--was $12.1 billion, its highest level since oil prices slumped in 2014. The company said it generated about as much cash last year, when international oil prices averaged $54 a barrel, as it did in 2014, when they averaged $99 a barrel.

"We are able to do the same for less," Shell Chief Financial Officer Jessica Uhl said.

Investors were less impressed, reacting to a 21% drop in Shell's cash flow from operations in the fourth quarter compared with a year earlier. The company's share price fell around 2% Thursday, while big oil stocks were trading higher.

But Shell's results overall were another signal of financial confidence in an oil industry emerging from a long downturn as Brent crude, the international benchmark for oil prices, has hovered close to $70 a barrel. Exxon Mobil Corp. and Chevron Corp. are set to announce their earnings on Friday, and BP PLC on Tuesday, with all expected to show healthier profits.

The oil industry's return as a cash machine represents a shift that goes beyond buoyant crude prices and reflects success in companies' yearslong efforts to restructure. Energy companies that once struggled to generate a profit at $100 a barrel have cut costs to a level where they could cover their spending and dividend commitments at a price of $60 a barrel or lower.

Across the industry, companies have simplified project plans, slashed thousands of jobs and worked to boost production from existing assets. At Shell, the company says it has fundamentally revamped the way it designs and executes projects and is working to deliver another $9 billion to $10 billion of savings in the coming years.

Shell said it is on track to pay down its large debt load and commence a $25 billion share buyback program by the end of the decade. The company wouldn't reveal the program's timing, suggesting it wants to build financial strength further before it begins repurchasing stock, but said it viewed the matter with "a tremendous sense of urgency."

Shell has already removed a 2 1/2 -year-old program that had allowed shareholders the option to take a portion of their dividend in stock--a popular choice among bullish investors but largely disliked because it diluted shareholder stock.

The results show how the company's $50 billion acquisition of natural-gas giant BG Group in 2016 is paying off, part of the company's bet on lower-carbon gas taking a lead role in efforts to tackle climate change. Profit in integrated gas doubled in 2017 to $5.1 billion.

Shell is also pushing ahead in early-stage investments in alternative energy such as electric-vehicle charging and offshore wind power, committing to spending $1 billion to $2 billion a year to the end of the decade.

The company has also moved to bolster its traditional oil-and-gas businesses. Shell recently announced a redevelopment project in the North Sea and on Tuesday was the biggest winner in a major auction for offshore oil blocs offshore Mexico.

Though the company said it remained committed to keeping a tight lid on spending, the moves demonstrate how the industry is beginning to look once more at the need to make long-term investments in future production--a metric that received little attention while oil prices were plummeting.

Shell also said changes to the U.S. corporate tax rate could encourage further investment in the U.S., where the company already spends around $10 billion a year. Earlier this week, Exxon announced plans to spend $50 billion in the U.S. over the next five years, investments that were "enhanced" by the tax overhaul.

One worrisome note was Shell's cash flow, which fell to $7.3 billion in the fourth quarter from $9.2 billion a year earlier.

Investors have watched oil-company cash-flow numbers closely since oil prices crashed in 2014, using them as a sign of a company's financial toughness, and are still highly sensitive to any perceived weakness on this front. The amount of cash a company throws off from its operations is an important indicator of its ability to finance spending plans and dividends without having to take on debt.

Bank analysts had expected higher cash-flow figures from Shell, but high tax liabilities and cash calls related to the company's natural-gas hedging hampered the cash-flow performance in the fourth quarter.

Write to Sarah Kent at [e-mail]



(END) Dow Jones Newswires

February 01, 2018 10:02 ET (15:02 GMT)

[waldron] 01/2/2018 08:53

LONDON-- Royal Dutch Shell PLC more than tripled its earnings in 2017, as rising oil and natural gas prices helped accelerate the impact of its efforts to boost cash flow and profitability.

The Anglo-Dutch oil giant is the first of the oil majors to report its earnings, kicking off a results season that is expected to show them regaining financial strength after years of scrambling to cope with a sharp drop in oil prices 3 1/2 years ago.

International benchmark Brent crude has been marching higher since the middle of 2017 and has hovered around $70 a barrel since the start of this year--its highest level since the end of 2014. The rally has played into deep spending cuts and cost reductions across the industry, helping accelerate big oil companies' recovery.

Shell said its 2017 profit on a current cost-of-supplies basis--a number similar to the net income that U.S. oil companies report--was $12.1 billion, up from $3.5 billion in 2016. Its earnings for the fourth quarter jumped to $3.1 billion, from $1 billion a year earlier.

U.S. oil majors Exxon Mobil Corp. and Chevron Corp. are set to update on their 2017 performance Friday.

Write to Sarah Kent at [e-mail]



(END) Dow Jones Newswires

February 01, 2018 03:00 ET (08:00 GMT)

[waldron] 01/2/2018 08:21

OUTLOOK FOR THE FIRST QUARTER 2018

Compared with the first quarter 2017, Integrated Gas production volumes are
expected to be positively impacted by some 210 thousand boe/d, mainly
associated with Pearl, Gorgon and portfolio impacts.

Compared with the first quarter 2017, Upstream earnings are expected to be
negatively impacted by a reduction of some 270 thousand boe/d associated with
completed divestments, and positively impacted by some 40 thousand boe/d
associated with lower maintenance activities. Earnings are expected to be
positively impacted by 40 thousand boe/d associated with restored production in
Nigeria; however, the security situation remains sensitive. The production
outlook for NAM in the Netherlands is subject to decisions on production
volumes by the Dutch government following the earthquake in Zeerijp in January
2018.

Refinery availability is expected to decrease in the first quarter 2018 as a
result of higher levels of maintenance compared with the same period a year
ago.

Chemicals manufacturing plant availability is expected to increase in the first
quarter 2018, due to lower levels of maintenance compared with the first
quarter 2017.

As a result of the separation of the Motiva assets and completed divestments,
oil products sales volumes are expected to decrease by some 175 thousand
barrels per day compared with the same period a year ago.

Corporate results, excluding the impact of currency exchange rate effects and
interest rate movements, are expected to be a net charge of $300 - 350 million
in the first quarter and around $1.4 - 1.6 billion for the full year.

As a result of the expected change in the fiscal functional currency of some
Shell entities in Australia to US dollars, the impact of exchange rate
movements of the Australian dollar on deferred tax balances will be
significantly reduced in 2018.

FORTHCOMING EVENTS

The LNG Outlook will be held on February 26, 2018 in London.

The Downstream Open House for Investors will be held on March 21, 2018.

The Annual General Meeting will be held on May 22, 2018.

First quarter 2018 results and dividends are scheduled to be announced on April
26, 2018. Second quarter 2018 results and dividends are scheduled to be
announced on July 26, 2018. Third quarter 2018 results and dividends are
scheduled to be announced on November 1, 2018.

[sarkasm] 31/1/2018 10:20

BP makes two new North Sea discoveries

Published by Nicholas Woodroof, Digital Assistant Editor
Oilfield Technology, Wednesday, 31 January 2018 10:00

BP has announced two new exploration discoveries in the North Sea. The discoveries are Capercaillie, in Block 29/4e in the Central North Sea, and Achmelvich, in Block 206/9b west of Shetland. BP fully owns Capercaillie, while the Achmelvich well partnership comprises BP (operator, 52.6%), Shell (28%) and Chevron (19.4%).

Both wells were drilled by the Paul B Loyd Junior rig in Summer 2017.

The Capercaillie well was drilled to a total depth of 3750 metres and encountered light oil and gas-condensate in Paleocene and Cretaceous-age reservoirs. The well data is currently under evaluation. Options are expected to be considered for a possible tie-back development to existing infrastructure.

The Achmelvich well was drilled to a total depth of 2395 metres and encountered oil in Mesozoic-age reservoirs. Evaluation and interpretation of the well results is ongoing to assess future options.

Mark Thomas, BP North Sea Regional President, said: “These are exciting times for BP in the North Sea as we lay the foundations of a refreshed and revitalised business that we expect to double production to 200 000 bpd by 2020 and keep producing beyond 2050. We are hopeful that Capercaillie and Achmelvich may lead to further additions to our North Sea business, sitting alongside major developments like Quad 204, which came onstream in 2017, Clair Ridge, due to come into production this year, and the non-operated Culzean field, expected to start-up in 2019.”

[waldron] 26/1/2018 17:12

Shell A
2,510 -0.04%


Shell B
2,554 -0.31%

PREMIUM 44p

[grupo guitarlumber] 26/1/2018 14:18

Shell Reports Mechanical Glitch at Martinez, Calif., Refinery
26/01/2018 2:04pm
Dow Jones News

Shell A (LSE:RDSA)
Intraday Stock Chart

Today : Friday 26 January 2018
Click Here for more Shell A Charts.

Shell reported a "mechanical malfunction" that led to flaring of gases at its refinery in Martinez, Calif.

In a statement to the California Emergency Management Agency, the refinery said the flaring happened late Thursday night and caused the release of more than 500 pounds of sulfur dioxide. The flaring event has since stopped, it added.

The 160,000-barrel-a-day refinery is located about 30 miles northeast of San Francisco.



Write to Dan Molinski at [e-mail]



(END) Dow Jones Newswires

January 26, 2018 08:49 ET (13:49 GMT)

[maywillow] 26/1/2018 10:50

TIDMRDSA TIDMRDSB

Voting Rights and Capital
· · · · · · · · · · · · · · · ·

In conformity with the Disclosure Guidance and Transparency Rules, we hereby
notify the market of the following:

Royal Dutch Shell plc's capital consists of 4,597,136,050 A shares and
3,745,486,731 B shares, each with equal voting rights. Royal Dutch Shell plc
holds no ordinary shares in Treasury.

The total number of A shares and B shares in issue is 8,342,622,781 and this
figure may be used by shareholders as the denominator for the calculation by
which they will determine if they are required to notify their interest in, or
a change to their interest in, Royal Dutch Shell plc under the FCA's Disclosure
Guidance and Transparency Rules.

[maywillow] 26/1/2018 09:53

Malabu: Kachikwu asks Buhari to accept controversial agreement ceding OPL 245 to Shell, Eni
January 26, 2018Nicholas Ibekwe
Former Minister Dan Etete, the man behind Malabu
Related News

EXCLUSIVE: Shell, Eni in fresh trouble as Nigeria begins moves to withdraw OPL 245

Malabu $1.1 billion deal: Obasanjo authorised first agreement — Adoke

EXCLUSIVE: Obasanjo speaks on Malabu $1.1 billion scandal, tackles Adoke

Malabu $1.1 billion fraud: Adoke pledges to make self available for trial

Acting President Osinbajo, Attorney General Malami in turf war over $1.3 billion Malabu scam

The Minister of State for Petroleum, Ibe Kachikwu, has advised President Muhammadu Buhari to cede controversial OPL 245 oil bloc to oil firms, Royal Dutch Shell and Eni.

Details of the advice was contained in a leaked memo written by the oil minister in December 2017 asking Mr Buhari to abide by a curious settlement agreement signed by his predecessors ceding the lucrative oil bloc to companies.

The memo was leaked as it emerged earlier on Thursday that Nigeria’s Attorney General, Abubakar Malami, told the Economic and Financial Crimes Commission (EFCC) that there may not be enough proof yet to show that fraud was allegedly committed by some former government officials in the $1.1 billion infamous deal.

Detail of Mr Malami’s memo was revealed during the trial of a former Petroleum Minister, Dan Etete, and former Attorney General, Mohammed Adoke, who interestingly had signed one of three agreements collectively referred to the Settlement Agreement, and others.

Mr Adoke’s lawyer, Kanu Agabi, asked the Abuja Division of the Federal High Court to strike out the charges against his client as they are illegal. He also told the court that the memo was proof of Mr Adoke’s innocence.

In the leaked Memo, titled: “Re: Forwarding of Case File in Respect of Charge No. FHC/ABJ/CR/268/17 and FCT/HC/CR/124/2017 – Malabu Oil & Gas Ltd”, Mr Kachikwu told Mr Buhari that he aligned with the advice of Mr Malami that the Federal Government should respect the resolution of the Settlement Agreement as it was consistent with “the consistent role of three (3) predecessor President in the matter, and the potential negative view of Nigeria that may follow should international arbitration ensue from this matter.”

Mr Kachikwu added that if Mr Buhari decided to go against the Settlement Agreement or “take steps that will undermine its integrity” it may turn out costly for the country.

The oil minister then explained that instead of abrogating the agreement, the Nigeria government should use it as a means of acquiring a stake in OPL 245 by converting it to a Production Sharing Contract (PSC) with Shell and Eni.

“This will not only ensure that Nigeria will bear no funding obligation for the development of the block, but will be a strategic, yet commercial, approach and solution to the OPL 245 issue which will ensure that Nigeria is focused on obtaining an immediate benefit from the OPL 245,” he wrote.

The ‘Settlement Agreement’

The agreement which was made on April 29, 2011, is made up of three separates resolution agreements. The first, titled “BLOCK 245 MALABU RESOLUTION AGREEMENT” was signed between representatives of the federal government and those of Malabu, which was represented during the discussions by a former petroleum minister, Dan Etete.

The second agreement, titled “BLOCK 245 RESOLUTION AGREEMENT” was between the Nigerian government and officials of Shell and Eni/AGIP; while the third agreement, titled “BLOCK 245 SNUD RESOLUTION AGREEMENT”, was signed by officials of the Nigerian government and Shell.

The immediate past attorney general of the federation, Mohammed Adoke, and immediate past petroleum minister, Diezani Alison-Madueke signed all the agreements on behalf of the federal government.

Both are among officials being investigated by Nigeria’s foremost anti-graft agency, the Economic and Financial Crimes Commission, for their roles in the scam.

According to the agreements, OPL 245 was first transferred to Malabu to the Nigerian government and then from the government to Shell and Eni. It also effectively cancelled all previous law suits and judgements related to the case.

It was based on these agreements that Shell and Eni paid a total of $1.3 billion into Nigerian government accounts, which as stated in earlier reports by PREMIUM TIMES, largely ended up in accounts of phoney companies and shady characters.

Cancel the agreement:

However, the position now taken by the Messrs. Malami and Kachikwu is contrary to the recommendation of a government committee Mr Malami himself set up.

Describing the agreement as “null and void” and saying it “should not be given any legal effect by the FGN (Federal Government of Nigeria) as doing so would amount to the FGN condoning and perpetuating illegality.”

The panel argued that the agreement is illegal because the ex-convict, Mr. Etete, had no legal authority to negotiate the agreement on behalf of Malabu as he was not a shareholder of the company nor had the permission of the shareholders to do so.

It also argued that the oil bloc was awarded to Malabu in furtherance of Nigeria’s policy to encourage local companies and part of the conditions for the award was that “foreign participation interest in the blocks (OPL 245 and 214) shall not exceed 40%, i.e. 60/40 indigenous to foreign;” a fact Shell was aware of but chose to ignore.

The committee said based on a resolution by the last House of Representatives, which called for the cancellation and demanded that Shell be “censured or reprimanded… for its lack of transparency and full disclosure in its bid to acquire OPL 245.”

Also, although Shell and Eni claimed they only struck an agreement with the federal government and that they did not know, before the agreement, that the money they paid was going to Malabu, evidence by investigators in Italy and the Nigerian anti-graft agency, EFCC, shows that the oil firms knew the payment was eventually going to Malabu accounts controlled by Mr. Etete, a man once convicted for money laundering in France.

Finally, the panel added that apart from the cancellation of the agreement, the Federal government should seek full recovery of the money paid by Shell and Eni, describing it as “proceed of crime.”

[grupo guitarlumber] 25/1/2018 20:43

Shell A
2,511 +0.30%

[grupo guitarlumber] 25/1/2018 18:52

Looking on the bright side


Announcement date February 1, 2018
Ex-dividend date February 15, 2018
Record date February 16, 2018

[waldron] 25/1/2018 16:55

Announcement date February 1, 2018
Ex-dividend date (See Note 1) February 15, 2018
Record date February 16, 2018
Scrip reference share price announcement date February 22, 2018
Closing of scrip election and currency election (See Note 2) March 2, 2018
Pounds sterling and euro equivalents announcement date March 9, 2018
Payment date March 26, 2018

[waldron] 25/1/2018 16:50

Shell A
2,512.5 +0.36%



Shell B
2,562.5 +0.35%

PREMIUM SET AT 50p