Shell in Talks to Sell $1.3 Bln of Gulf Coast Assets
Royal Dutch Shell Plc is in talks to sell its assets in a Gulf of Mexico oilfield to Focus Oil to pay for its takeover of BG Group Plc, Bloomberg reported on Thursday, citing people familiar with matter.The deal could value Shell's stake in the Caesar Tonga field at about $1.3 billion, the report said.Shell has a 22.5 percent working interest in Caesar Tonga, with the rest owned by companies including Anadarko Petroleum Corp, Equinor ASA and Chevron Corp, Bloomberg said, citing company filings.Shell and Focus Oil did not immediately respond to a request for comment.(Reporting by Sathvik N in Bengaluru, Editing by Rosalba O'Brien)
Kazakhstan Files $1.6 bln Claim Against BG-Eni Venture
Kazakhstan has filed a $1.6 billion claim against a group led by BG Group Plc and Eni SpA which is developing the Karachaganak gas condensate field, Russia's Lukoil, also a consortium member, said. The move is the latest sign of tensions between global energy majors and national companies in resource-rich nations as low oil prices put more strain on state budgets which have ballooned over the past decade. The dispute relates to a formula which determines how profit from the development is split between the companies and the government, Lukoil said in its financial report published on Monday…
Shell CEO: Brazil Output to Quadruple by 2020
Royal Dutch Shell, Europe's largest oil company, expects to make robust investments in Brazil's offshore, hoping to quadruple oil and gas output there by the end of the decade, its chief executive officer said on Monday. CEO Ben Van Beurden spoke in Brazil shortly after Shell's $52 billion takeover of rival BG Group Plc, approved in late January, took effect. He said Brazil will be a key area for the Anglo-Dutch company as it focuses its expanded operations in liquefied natural gas (LNG) and deepwater oil production. "We believe in the strong fundamentals of Brazil and the fundamentals of its geology," Van Beurden told reporters in Rio de Janeiro.
Keppel, BG Group JV to supply LNG Bunkers in Singapore
Keppel Offshore & Marine Ltd (Keppel O&M), through its wholly-owned subsidiary KS Investments Pte Ltd (KSI), and BG Group plc (BG Group) have been selected to supply Liquefied Natural Gas (LNG) bunker to vessels in the Port of Singapore. The joint bid submitted by Keppel O&M and BG Group for the LNG bunker supplier licence is one of the two top bids selected by the Maritime and Port Authority of Singapore (MPA). The awarding of the licence is in line with the Port of Singapore's plans to launch the LNG Bunkering Pilot Programme in 2017. Keppel…
Norway's Wealth Fund to Okay BG-Shell Merger
Norway's $790 billion sovereign wealth fund, the world's largest, will vote in favour of the merger of energy companies Royal Dutch Shell and BG , it said on Wednesday. "Norges Bank Investment Management considers that the transaction accelerates value for BG Group PLC shareholders and is in the best long-term interest of Royal Dutch Shell PLC shareholders," the fund said in two statements to shareholders. A spokeswoman for the fund said the price of the transaction was fair overall. "In an environment of low oil price, we believe the companies will stand stronger together," she said.
Brazil October Oil Output Near Flat as Subsalt Output Falls
Brazil's oil output was little changed in October compared with September as production from the country's largest offshore subsalt fields fell, erasing gains from older fields ramping up output following maintenance, the country's oil regulator said on Wednesday. Brazil produced 3.02 million barrels a day of oil and natural gas equivalent (boepd) in the month, 0.3 percent more than the previous month, ANP said. The figures are seen as bad news for the government of President Dilma Rousseff, which is struggling to maintain tax revenue with the economy immersed in its deepest recession in 25 years.
Kazakhstan Considering $2 bln Fine on BG-Eni Venture
Kazakhstan is considering levying a fine of as much as $2 billion on a gas project led by BG Group Plc and Eni SpA for failing to fulfil certain contractual obligations, Bloomberg reported. The fine would be roughly in line with penalties the government threatened to impose in a 2010 dispute that ended with the state taking a 10 percent stake in the gas and condensate project, Bloomberg reported, citing sources. Eni and BG each own 29.25 percent of the Karachaganak project in north-west Kazakhstan, which they jointly operate. State-owned KazMunayGaz owns 10 percent of the project, while U.S. oil major Chevron Corp owns 18 percent and Russia's Lukoil 13.5 percent.
BG says European Commission signs off on Shell bid
BG Group Plc said the European Union's antitrust regulators had approved Royal Dutch Shell Plc's $70 billion takeover bid for the oil and gas producer. The company said the unconditional clearance from the European Commission was the second of five global regulatory approvals required. Shell's takeover offer was announced on April 7. Reporting by Esha Vaish
GasLog Post Robust 2Q Results
GasLog Ltd. and its subsidiaries, an international owner, operator and manager of liquefied natural gas carriers, today reported its financial results for the quarter ended June 30, 2015. Agreement with BG Group plc to charter three newbuildings for approximately 10-year charters at attractive rates with an option to charter an additional six newbuildings. Announced the completion of the dropdown of three vessels to GasLog Partners LP (“GasLog Partners”) for $483.0 million – the recommended increase by GasLog Partners’ management in the Partnership’s distribution exceeds the 25% incentive distribution rights (“IDR”) threshold.
Brazil clears $70 bln BG-Shell merger
BG Group Plc on Friday confirmed that it has received final unconditional clearance from Brazilian competition authority CADE for its acquisition by bigger rival Royal Dutch Shell. The clearance of the $70 billion merger follows the 15-day period during which the preliminary approval granted by CADE on 8th July could have been appealed. Shell is set to become the largest Brazilian offshore foreign operator after it completes the merger with BG, which it announced in April. The proposed acquisition had previously obtained a green light from United States Federal Trade Commission (FTC) and now only needs pre-conditional approvals from the European Union…
S&P Cut Its Rating on Shell after Big BG Merger
Standard & Poors cut its rating on Royal Dutch Shell Plc by one notch to 'AA minus' from 'AA', citing a weaker financial risk profile, mainly due to soft oil prices, and continuing substantial capital expenditures. Shell announced in April that it has agreed to buy BG Group Plc for about 47 billion pounds, making it the first oil super-merger in a decade. The rating agency said the company's outlook could be revised to stable if the BG acquisition does not proceed further. "Our rating on Shell does not factor in the BG acquisition at this stage, since the deal is yet to close.
BG Ships First LNG from QCLNG, Australia
BG Group plc today announces it has started up and loaded its first LNG from the second production train at the Queensland Curtis LNG (QCLNG) facility in Australia. The first LNG from Train 2 set sail on the Maran Gas Posidonia. At plateau production, expected mid-2016, both trains at QCLNG will be producing enough LNG to load ten vessels per month combined, exporting around eight million tonnes per year. Since production from the first train commenced in December 2014, 27 cargoes have been shipped. BG Group began commercial operations in May 2015, when control of Train 1 formally transferred to QGC, BG Group’s Australian subsidiary, from the constructor Bechtel Australia.
BG Group Sells QCLNG Pipeline
BG Group plc announced it has completed the sale of its wholly-owned 543 kilometer pipeline network linking natural gas fields and the Queensland Curtis Liquefied Natural Gas (QCLNG) export facility to APA Group. This transaction has resulted in gross proceeds for BG Group of around $4.6 billion, reflecting indexation movements to the long term tariff payable since the transaction announcement on December 10, 2014, and in line with the $4.5 to $5 billion range provided in Q1 2015. Tariffs payable on the pipeline are set to provide a fixed rate of return on the asset base with the primary tariff components escalating annually with US inflation indices.
European Oil Majors Take aim at Coal
Europe's oil and gas companies took direct aim at the coal industry Monday, calling upon governments to set a global price on carbon emissions that could dramatically drive market share from coal to natural gas. The joint declaration issued by six European oil and gas majors was cautiously embraced by the United Nations, which will host negotiations this December in Paris aimed at designing a plan to cut the fossil fuel emissions that scientists blame for rising temperatures. The companies argued that when burned to make electricity, natural gas typically generates around half the carbon emissions of coal.
Oil, Gas Majors Call for Carbon Pricing
Major oil and gas companies, BG Group plc, BP plc, Eni S.p.A., Royal Dutch Shell plc, Statoil ASA and Total SA, today announced their call to governments around the world and to the United Nations Framework Convention on Climate Change (UNFCCC) to introduce carbon pricing systems and create clear, stable, ambitious policy frameworks that could eventually connect national systems. These would reduce uncertainty and encourage the most cost effective ways of reducing carbon emissions widely. The six companies set out their position in a joint letter from their chief executives to the UNFCCC Executive Secretary and the President of the COP21.
ConocoPhillips Weighs Sale of North Sea Assets in Norway
ConocoPhillips Inc is weighing sale of some of its North Sea assets in Norway which may fetch as much as $1 billion, Bloomberg reported, citing sources familiar with the matter. The largest independent producer of oil and natural gas may sell assets that are operated by others including stakes in the Aasta Hansteen, Alvheim and Grane fields, Bloomberg said, citing the sources. (http://bloom.bg/1J7KJ8g). The company is also said to have contacted potential buyers, Bloomberg reported, citing a source familiar with the matter. ConocoPhillips said it does not comment on ongoing business development or commercial activities.
Shell-BG Deal Tests China's Antitrust Pledge
Royal Dutch Shell's $70 billion bid for BG Group Plc will put to the test a pledge by China's antitrust regime to be more transparent, after it faced strong criticism last year from the United States and Europe. China's nascent competition law has become one of the biggest wildcards for large cross-border deals in recent years, particularly where natural resources are concerned. In 2013, China's Ministry of Commerce (MOFCOM) said miner Xstrata had to sell off a prized Peruvian copper project in order for its $35 billion merger with Glencore to proceed, despite neither company owning any assets in China at the time.
Shell-BG Deal Could Face Bumpy Ride from Partner Rights
Royal Dutch Shell Plc's agreed $70 billion takeover of rival BG Group could trigger pre-emption rights in key oil and gas fields that would erode the potential benefits of the deal for the Anglo-Dutch oil giant. Shell said a main driver of its bid for BG Group was the gas-focused British group's position in Brazil. Two exploration blocks, named BM-S-9 and BM-S-11, account for almost all the value of BG's Brazil assets. "In certain specific circumstances, it is possible that BG Group's partners in BM-S-9 (Petrobras and Repsol Sinopec Brasil) have a right of first refusal to acquire BG Group's interest .. in the event of a change of control of BG Group plc".
Shell Takeover Could Net BG CEO $48 mln
Royal Dutch Shell Plc's agreed takeover of BG Group Plc will trigger payouts for BG Chief Executive Helge Lund that could see his pay for his first year top 32 million pounds ($47.8 million), a Reuters analysis of corporate filings shows. In December, BG Group was forced to scale back a planned pay deal for Lund potentially worth around 25 million pounds for his first year, under pressure from investors. However, the agreed $70 billion takeover of BG Group could see the Norwegian, who took up his role in February, receive much more. BG Group's chairman said on Wednesday that Lund would "probably move along" following the merger, which is expected to close in early 2016.
Conoco CEO Sees Ramping up Shale Rigs when Oil Price Recovers
ConocoPhillips, the largest independent producer of oil and natural gas, plans to add drilling rigs in 2017 in key U.S. shale acreage based on its expectations for a crude price recovery, the company's chief executive said on Wednesday. Conoco, which slashed its capital spending plan nearly 30 percent to $11.5 billion this year, told investors it expects to increase the number of rigs in its Eagle Ford acreage in South Texas to 12 in 2017 from an average of seven this year. In North Dakota's Bakken, the rig count will double to 10 over the same period.
