Not All Doom and Gloom for South Africa as Shell Pulls Out

EDISON Research believes Royal Dutch Shell’s “pull-back” from South Africa is not the harbinger of doom for the country’s nascent shale gas industry analysts have predicted, as there’s more to the super-major’s decision than meets the eye.

Shell announced in March it was putting its South Africa shale gas exploration program on hold and pulling its shale gas head, Jan-Willem Eggink, out of the country – with more “highly skilled staff” to follow him – as it continues to seek an exploration licence.

Shell cited falling oil and gas prices and the need for greater clarity on legislation and technical regulations before deciding on its next steps.

Today's Oil Industry: Sack the Bottom to Feed The Top

We all know that this year has been one of steadfastness as a worker in the oil and gas industry (exception being in the case of the executives of course). Job cuts to minimise cost has been the anthem on the lips of many following the slash in the oil prices coming into this year, with another eye keen on the creation of more efficient methods. As technology transition and innovation is never an immediate solution the industry has been pulled into what can be described as a massive scale downsizing of employees in other to stay afloat. Contracts are being scrutinized and re-scrutinized to ensure effective cost savings implementation strategies and only the best of hands are being "greased". 

"We are likely to see more energy deals after Shell-BG" - Fitch

Royal Dutch Shell’s acquisition of BG Group agreed Wednesday could spark a wave of energy deals beyond the opportunistic ones already seen, Fitch Ratings says.

The deal signals that Shell has confidence in the sector and is positioning itself for the sector’s recovery. Shell’s competitors are likely to also look for partners, so they are not at a disadvantage when the cycle turns, Fitch Rating explains.

Shell Completes $1.7B Sale of Nigerian Assets

The Shell Petroleum Development Company of Nigeria Limited (SPDC), a subsidiary of Royal Dutch Shell plc (Shell), has completed the assignment of its interest in oil mining lease (OML) 29 and the Nembe Creek Trunk Line (OML29 and NCTL) and related facilities in the Eastern Niger Delta. Its interests in OML29 and the Nembe Creek Trunk Line were assigned to Aiteo Eastern E&P Company Limited. Total cash proceeds for Shell amount to some $1.7 billion. This divestment is part of the strategic review of SPDC’s onshore portfolio and is in line with the Federal Government of Nigeria’s aim of developing Nigerian companies in the country’s upstream oil and gas business. 

Shell, Total, ENI Complete $1.1 billion Nigerian Oil Field Sale

Royal Dutch Shell said on Friday it had completed the sale of its 30 percent stake in a Nigerian oil field for $737 million as the Anglo-Dutch oil major nears the completion of a strategic asset review in the West African country.

Oil and Mining Lease (OML) 18 and "related facilities in the Eastern Niger Delta" were sold to Eroton Exploration & Production Company Limited.

Eroton is a a special purpose company owned directly or indirectly by a consortium. Eroton also acquired French oil major Total's 10 percent stake and Italy's Eni's 5 percent stake in OML 18, giving it a total 45 percent holding, Shell said in a statement. The remaining 55% is owned by the Nigerian National Petroleum Corporation, NNPC. The total purchase price for the interest was US$1.1 billion, not including acquisition costs. All approvals required for the completion of the acquisition of OML 18 have been received from the relevant authorities of the Federal Government of Nigeria.