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Shell (RDS.A) has pulled out of talks to acquire a stake in Anadarko Petroleum's (APC) gas...

Shell (RDS.A) has pulled out of talks to acquire a stake in Anadarko Petroleum's (APC) gas discoveries off the coast of Mozambique in East Africa, due to a high price. Instead, Shell will focus on projects off the coasts of Benin, Gabon and South Africa on the other side of the continent. While these projects are more uncertain, they could be more lucrative, as West African prospects tend to provide more oil than gas.
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Comments (6)
  • Mike Walker
    , contributor
    Comments (364) | Send Message
     
    Benin, Gabon - neither has shown any potential for a massive gas find on the scale of Mozambique.

     

    South Africa deepwater - highly speculative.

     

    Deepwater Nigeria - the gas is there but approvals take far too long for any meaningful medium term impact on Shell's financials. Shell discovered the super giant 'Bonga Southwest' oil field in 2001 (deepwater Nigeria). Twelve years later they are nowhere even close to a FID.

     

    Shell either needs the big acquisition - or risks being gobbled up itself. And if not Mozambique - where ?
    27 May 2013, 03:58 AM Reply Like
  • DougNeal
    , contributor
    Comments (44) | Send Message
     
    They are more interested in oil.
    27 May 2013, 09:31 AM Reply Like
  • gcmagone
    , contributor
    Comments (1028) | Send Message
     
    Shell should take a close look at acquiring Anadarko Petroleum (APC) or ConocoPhillips (COP). Either one would be a good fit for Shell albeit expensive.
    27 May 2013, 07:50 AM Reply Like
  • rlp2451
    , contributor
    Comments (7382) | Send Message
     
    There are many potential merger candidates. I would like to see and OXY/RDS combo myself, but I doubt OXY would sell now that it's on a new track.

     

    Apache would be OK too.

     

    Or they could stay more continental and look at Eni, Statoil or Total.
    27 May 2013, 02:18 PM Reply Like
  • Retired User
    , contributor
    Comments (1803) | Send Message
     
    Anadarko would rather swallow a poison pill than be acquired by Shell. Partner on deepwater projects, sure. Merge and shed Anadarko's ace technical staff? - no way.

     

    The idea of Shell merging with Eni is amusing. They deserve each other. /sarc
    28 May 2013, 01:08 AM Reply Like
  • DougNeal
    , contributor
    Comments (44) | Send Message
     
    Shell is a horribly bureaucratic company. There is no basis for ANY kind of merger with ANY mid-sized US oil company. Companies like Shell and BP are like socialistic dinosaurs. Maybe they are a bit better now but I doubt it.
    29 May 2013, 10:01 AM Reply Like
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