Royal Dutch Shell plcNYSE
Today, 7:54 AM
- Mitsui (OTCPK:MITSY) agrees to buy a 20% stake in four blocks in the U.S. offshore oil and gas fields in the Gulf of Mexico from Royal Dutch Shell (RDS.A, RDS.B) for an undisclosed sum.
- The recoverable resources of the Mississippi Canyon blocks are estimated to total more than 100M boe, worth ~$5.1B based on the current WTI crude futures price of ~$51/bbl.
- Mitsui's move follows other decisions earlier this year to co-develop the Greater Enfield oil reserves off Western Australia and help expand the BP-led Tangguh liquefied natural gas project in Indonesia.
Thu, Dec. 1, 10:21 AM
- The price of oil pushed through $50 per barrel today, and is currently posting a 2.9% advance on the session at $50.91.
- The S&P 500 is flat and Nasdaq is down 0.45%, but the XLE has tacked on another 1.8% to yesterday's big rise.
- Mid-cap movers: Enerplus (ERF +8.2%), Southwestern Energy (SWN +7.9%), Range Resources (RRC +5.3%), Weatherford (WFT +7.1%), Ensco (ESV +8.2%), Crescent Point (CPG +6.3%).
- Among the large players: Exxon (XOM +1.1%), Chevron (CVX +2%), Shell (RDS.A +2.2%), (RDS.B +2.3%), BP (BP +2.4%), ConocoPhillips (COP +2%), Marathon (MRO +3.1%), Halliburton (HAL +2.3%)
Wed, Nov. 30, 5:45 PM
- Big oil earnings will double next year as crude prices continue to march higher and oilfield services costs remain depressed, Evercore ISI head of energy research Doug Terreson tells CNBC.
- Terreson's top picks are Royal Dutch Shell (RDS.A, RDS.B), BP, ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX), but he also sees upside for smaller independent E&P companies and oilfield services firms.
- "While we expected OPEC to cut production, today's outcome exceeded our expectations," Terreson says, "so this is a positive outcome for the oil markets, and we also think for the outlook for energy stocks in 2017 too," adding that he is "unrepentantly bullish."
Wed, Nov. 30, 12:45 PM
- Royal Dutch Shell (RDS.A, RDS.B) CEO Ben van Beurden tells Reuters the company is studying acquisitions in the green energy sector, as it bows to shareholder demands for a strategy beyond fossil fuels.
- Major investors, including Dutch pension fund PGGM, have criticized Shell's climate change policies in the past, even as the company owns ~500 MW of onshore wind power capacity in the U.S., has a growing biofuels business in Brazil, and recently bid to build an offshore wind farm in the Netherlands in a consortium with two other Dutch companies.
- "Of course we do believe in renewables but probably more in building the utilities and integrating them into our existing operations," van Beurden says, an apparent strategy divergence Total, which is often referred to as one of the most progressive oil companies when it comes to moving away from fossil fuels.
Wed, Nov. 30, 11:42 AM
- Norway's oil regulator says it wants Royal Dutch Shell (RDS.A, RDS.B) to move forward with a shelved project to boost recovery of natural gas at the Ormen Lange field and warns it will start pushing the company for progress from next year.
- Norway wants a decision on an offshore compression project, which was postponed in 2014, as it will start to be “urgent” to proceed with the project during 2017 and 2018; production at the Norwegian Sea field, which supplies ~20% of the U.K.’s gas consumption, has been falling as the pressure in the reservoir drops.
- Shell is expanding its terminal at Nyhamna to allow it to process gas from other fields and is installing two onshore compressors to boost recovery from Ormen Lange; it has said previously that a concept decision could be made in 2017, but for now, it is "still too early to conclude if a major project to increase recovery beyond onshore compression will materialize."
Wed, Nov. 30, 9:50 AM
- Shares of energy companies surge at the open, as hopes for an OPEC deal to cut production send crude oil futures soaring.
- Reports say Saudi Arabia is prepared to accept "a big hit" to production and agree to Iran freezing output at pre-sanctions levels.
- In early trading: XOM +2.2%, CVX +2.3%, RDS.A +3.6%, BP +3.4%, TOT +1.7%, STO +5.1%, PBR +8.1%, COP +7.2%, MRO +12.1%, APC +8%, DVN +12.7%, HES +9.5%, ENB +2.1%, PSX +0.8%, SLB +4.2%, HAL +8.3%, BHI +4.3%, KMI +4.8%, EPD +2.7%, ETP +3.8%, WMB +5.4%, RIG +11.3%, SE +2.2%, CHK +9.4%.
- ETFs: XLE, VDE, ERX, OIH, XOP, FCG, ERY, GASL, DIG, DUG, BGR, XES, IYE, IEO, FENY, IEZ, PXE, GASX, PXI, FIF, PXJ, RYE, NDP, GUSH, PSCE, DRIP, DDG, FXN, CRAK
Wed, Nov. 30, 9:09 AM
- Royal Dutch Shell (RDS.A, RDS.B) agrees to acquire Centrica's (OTCPK:CPYYF) natural gas assets in Trinidad and Tobago for $30M.
- The assets include a 17.3% interest in the producing NCMA-1 block as well as operating interests in two undeveloped blocks; Shell has a presence in Trinidad through its stake in Atlantic LNG, one of the world's largest plants.
- Separately, Centrica and its partners say they will invest NOK5.4B ($630M) in the development of the Oda oilfield off Norway after cutting costs by 45% compared to initial estimates.
Tue, Nov. 29, 10:20 AM
- Crude oil continues to slide - WTI now -3.8% at $45.27/bbl, and Brent -3.8% at $46.40/bbl - dragging oil and gas equities (XLE -2.1%) down with it.
- Iran's oil minister says he is not prepared to reduce supply, and Saudi Arabia says it would not participate in a production deal without Iran and Iraq.
- Reuters reports that Iran has written to OPEC saying Saudi Arabia needs to cut oil output to 9.5M bbl/day; Saudi has said it was prepared to reduce its production only by 500K bbl/day from current levels of 10.5M.
- In early trading: XOM -1%, CVX -1.7%, RDS.A -1.4%, BP -1%, TOT -0.3%, STO -1.8%, PBR -3.7%, COP -2.9%, MRO -4%, APC -2.8%, DVN -2.7%, HES -3.6%, ENB -2.3%, PSX -1.2%, MPC -0.8%, SLB -2.2%, HAL -2.3%, BHI -2.1%, KMI -1.4%, EPD -2%, ETP -2.2%, WMB -2.4%, SE -2.3%, CHK -2.6%.
- ETFs: XLE, VDE, ERX, OIH, XOP, FCG, ERY, GASL, DIG, DUG, BGR, XES, IYE, IEO, FENY, IEZ, PXE, GASX, FIF, PXJ, RYE, NDP, GUSH, DRIP, DDG, FXN, CRAK
Tue, Nov. 29, 8:55 AM
- Chevron (NYSE:CVX) is teaming up with Mexico's Pemex and Japan’s Inpex to bid for the right to explore for oil and natural gas in Mexico's first-ever deepwater auction, set for Dec. 5.
- The auction marks the first time Mexico's state-owned operator will partner with private companies to develop crude in the Gulf of Mexico, and is one of seven groups and eight individual bidders to qualify for participation.
- Total (NYSE:TOT) is joining forces with BP and Statoil (NYSE:STO) in one group, and with ExxonMobil (NYSE:XOM) in another, while Eni (NYSE:E) and Lukoil (OTCPK:LUKOY, OTC:LUKOF) also joined up, and Anadarko Petroleum (NYSE:APC) and Royal Dutch Shell (RDS.A, RDS.B) formed another group; other companies involved include BHP, CEO, MUR.
- The Mexican regulator has not specified which bids are for the Trion field joint venture with Pemex or for the other areas.
Mon, Nov. 28, 12:48 PM
- Royal Dutch Shell (RDS.A, RDS.B) is considering selling out of its oil fields in Iraq as part of its global $30B asset disposal program, Reuters reports, citing industry sources.
- Shell has found only limited financial benefits in recent years from its involvement in Iraq's oil production, where it is paid in crude oil but has limited say on production strategy, but it continues to see value in developing its gas business in Iraq and is not interested in selling those interests, according to the report.
- Shell holds a 45% interest in Iraq's Majnoon oil field that it operates under a technical service contract and a 20% stake in the West Qurna 1 field; Iraq accounted for ~4.4% of Shell's total oil and gas production in 2015.
Mon, Nov. 28, 11:57 AM
- Royal Dutch Shell (RDS.A, RDS.B) CEO Ben Van Beurden dismisses concerns that production limits from the Paris climate accord could hit the company’s valuation, and says the issue of “stranded reserves” would have no impact on its balance sheet.
- "Shell is valued on producable reserves that we can produce in the next 12-13 years. We should certainly be able to produce those under any climate outcome," the CEO tells a Dutch newspaper.
- Van Beurden is skeptical that revaluation of reserves after the climate deal could trigger a financial shock, saying that the oil price's collapse from $120/bbl to $30 showed the industry's ability to weather much larger shocks.
- He also says there will be no changes to Shell's dividend policy, even though payouts at the current level outstripped the company's cash flow.
Fri, Nov. 25, 9:39 PM
- Total (NYSE:TOT) says it will lead a consortium of companies to build a liquid natural gas import terminal in Ivory Coast meant to feed the country's growing electricity consumption, with a final investment decision on the project expected in Q1 2017.
- The project aims to build and operate a floating storage regasification unit with an initial capacity of 100M cf that would gradually be brought up to 400M cf; the cost of the project, expected to take ~18 months to complete, has been cut to $100M from an earlier estimate of $200M.
- The consortium is 34% owned by TOT, 26% controlled by Azerbaijan's state-owned SOCAR, 13% by Royal Dutch Shell (RDS.A, RDS.B), and 11% by Ivorian state oil company Petroci, with smaller stakes held by Golar LNG (NASDAQ:GLNG) and Endeavor Energy.
Fri, Nov. 25, 9:56 AM
- Evidently inclusive of the company's targeted $30B divestment program.
- Reuters reports Royal Dutch Shell (RDS.A, RDS.B) had informed staff of the discourse yesterday.
- Bidding for the fields in Gabon, a country Shell has operated in for over 50 years, has been predicted by one source to register around $700M.
- The Carlyle Group and Perenco, neither of which have offered comment on the development, are considered to have extended into a second round of bidding for the operations.
- On Monday – Report: Shell nears sale of ~$2B in North Sea assets
- Previously (September 8) – Report: Shell considering sale of 600 Argentina gas stations
Wed, Nov. 23, 12:57 PM
- Shell Canada (RDS.A, RDS.B) head Michael Crothers says the company is no longer interested in expanding in Alberta's oil sands, which Shell now regards as a “cash engine” rather than a “growth engine,” and will focus instead on shale and new energy sources.
- Shell's oil sands’ business, which produces ~300K bbl/day, remains profitable even at today’s low oil prices, "but having absorbed an $80B acquisition, we don’t have any near-term plans to be investing huge amounts of money into the oil sands sector,” Crothers tells Financial Post, referring to Shell’s earlier acquisition of BG Group.
- FP's Claudia Cattaneo writes that Shell will not be alone in harvesting its oil sands assets while looking for growth elsewhere; according to a new TD economics report, carbon taxes will challenge the economics of projects if oil prices are below $60/bbl, though they would not be as big a factor if oil prices are higher.
Tue, Nov. 22, 7:59 AM
- Britain's High Court begins hearing lawsuits today that were filed against Royal Dutch Shell (RDS.A, RDS.B) by a group of Nigerian farmers and fisherman alleging that decades of oil spills have fouled the Niger River Delta.
- Shell and its Nigerian subsidiary are being sued by two Nigerian communities, who are seeking ~£100M in compensation after suffering repeated oil spills they say came from Shell pipelines in the area where the company has maintained a presence since the 1950s.
- This week's hearing will consider whether the claims can be heard in the U.K., where Shell is incorporated; it will be closely watched as a test case that could open the floodgates to more multinationals being sued in London courts.
Mon, Nov. 21, 12:47 PM
- Small private oil company Chrysaor is set to beat out bigger rivals including Blackstone-backed Siccar Point and Ineos in buying Royal Dutch Shell’s (RDS.A, RDS.B) North Sea oil fields, estimated to be worth nearly $2B, the Sunday Times reports.
- Chrysaor is led by former Hess executive Phil Kirk and chaired by Francis Gugen, founder of struggling shale gas developer iGas, and backed by U.S. P-E firm EIG Global Energy Partners.
- Chrysaor could buy most but perhaps not all of the North Sea fields Shell is trying to offload as part of its $30B divestment program, according to the report.