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Page added on January 31, 2017

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Shell to Sell UK North Sea Oil Fields for $3.8 Billion

Business

Royal Dutch Shell PLC capped off a flurry of deals in January with sales in Thailand and the North Sea worth nearly $5 billion, marking important milestones in the oil giant’s move to unload $30 billion in assets.

WSJ



11 Comments on "Shell to Sell UK North Sea Oil Fields for $3.8 Billion"

  1. Cloggie on Tue, 31st Jan 2017 2:26 pm 

    Shell recognizes a train wreck when it sees one and changes course:

    https://phys.org/news/2016-12-shell-led-consortium-700mw-offshore-dutch.html

  2. Apneaman on Tue, 31st Jan 2017 3:55 pm 

    Going out of business sale.

  3. Midnight Oil on Tue, 31st Jan 2017 4:23 pm 

    Got to pay the Dividends….nahhh, golden parachutes to the top executives.

  4. Survivalist on Tue, 31st Jan 2017 9:59 pm 

    Shell, Exxon, Total, Chevron and BP are all in liquidation mode.

  5. Cloggie on Wed, 1st Feb 2017 4:24 am 

    Shell, Exxon, Total, Chevron and BP are all in liquidation mode.

    BS, they all still make billions. Admittedly not the insane profits of the past, but they make still huge profits.

    Shell for instance bought British liquid nat-gas company BG in 2015 for the astronomical 64 billion euro.

    Liquidation mode?

    Don’t make me laugh.

    http://www.trouw.nl/tr/nl/4504/Economie/article/detail/4228839/2016/01/20/De-winst-van-Shell-verdampt-maar-het-prachtdividend-blijft.dhtml

  6. Davy on Wed, 1st Feb 2017 5:27 am 

    “Shell, Exxon, Total, Chevron and BP are all in liquidation mode.”
    Intellectually lazy “binary” people who hate oil and industry will say things like this. The reality is as long as we have modern civilization there will be big oil managing what is left of oil. No big oil no civilization. Renewables are a joke but a happy fun joke. We as modern men are in liquidation. Don’t get the cart in front of the horse.

  7. rockman on Wed, 1st Feb 2017 7:52 am 

    Davy – What’s interesting is that some folks ignore the fact that a company “liquidating” hydrocarbon assets = a company expanding hydrocarbon assets. Also to some civilians this sounds like a big sale…it isn’t:

    “The assets sold by Shell accounted for more than half of the company’s North Sea oil production last year and includes fields gained after Shell acquired gas giant BG Group for £47bn.”

    RDS’s North Sea footprint had diminished to an inefficient level. Big Oil has been “liquidating” such assets for more the HALF A CENTURY. Big Oil significantly reduced its onshore USA footprint many decades ago. Big Oil isn’t that big in terms of its employee to asset ratio. Essentially it lacks the increasing manpower requirements to manage assets as they near the end of life when they require increased attention. For instance the sale as RDS is submitting its formal plan to government for dismantling its facilities at Brent Field which has produced about 10% of total North Sea production over four decades.”

    BTW as is typical such acquisitions are often made by smaller companies led by former employees who are very familiar with a property’s residual potential: “Shell has sold a large part of its North Sea oil fields for $3.8bn (£3bn) to a company headed by Linda Cook, who left Royal Dutch Shell more than seven years ago. More than 400 jobs will be transferred to Cook’s company, which will become one of the UK’s biggest oil and gas producers after the sale is completed”.

    And I wonder if all the commenters here realize this wasn’t a sale by the US company Shell Oil?

  8. BobInget on Wed, 1st Feb 2017 9:53 am 

    Rockman, I agree with your accurate history
    lesson. If there is an ‘American’ Shell Oil it hasn’t been listed as yet.

  9. rockman on Wed, 1st Feb 2017 12:37 pm 

    Bob – “Shell Oil Company is the United States-based subsidiary of Royal Dutch Shell, a multinational “oil major” of Anglo-Dutch origins, which is amongst the largest oil companies in the world.”

    “Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in the Netherlands and incorporated in the United Kingdom.”

    “Until the mid-1980s Shell’s business in the United States was substantially independent. Limited direct involvement from the main office in The Hague, Netherlands and having its stock “Shell Oil” traded on the New York Stock Exchange were factors. However, in 1984, Royal Dutch Shell made a bid to purchase those shares of Shell Oil Company it did not own (around 30%) and despite some opposition from some minority shareholders which led to a court case, Shell completed the buyout for a sum of $5.7 billion.

    Despite the acquisition, however, Shell Oil remained a fairly independent business. This was due in part to complex legal reasons as Royal Dutch Shell feared that there could be onerous liability problems if a closer control of Shell Oil’s affairs was exercised by the “parent companies.” In the 1980s Shell Oil’s independence began to gradually erode as the “parent companies” took a more hands-on approach in running the business. The logo used in the United States is the same as that used elsewhere since June 1, 1998.”

    So two separate public companies but Shell Oil USA is wholely owned by RDS. But the sale of the North Sea assets has no impact, positive or negative, on Shell Oil USA.

  10. Kenz300 on Wed, 1st Feb 2017 10:24 pm 

    Divesting from fossil fuels. OH my.

    Could it be that wind and solar are a better bet for the future?

    Renewables Provide Majority of New US Generating Capacity through November 2016

    http://www.renewableenergyworld.com/articles/2017/01/renewables-provide-majority-of-new-us-generating-capacity-through-november-2016.html

  11. Cloggie on Thu, 2nd Feb 2017 4:47 am 

    Bob – “Shell Oil Company is the United States-based subsidiary of Royal Dutch Shell, a multinational “oil major” of Anglo-Dutch origins, which is amongst the largest oil companies in the world.”

    Originally it was an all-Dutch affair that began with oil exploration in the Dutch East Indies, sometimes misspelled as “Indonesia”:

    https://en.wikipedia.org/wiki/Jean_Baptiste_August_Kessler

    We lost Indonesia because America wanted to own Europe, together with their Soviet palls, and for that purpose needed to provoke a war with Japan, because that country had allied itself to Germany, one week or so before the US imposed a 100% oil boycott against Japan, for no other purpose than to force the Japanese to get the oil elsewhere and provoke the Pearl Harbor attack first to remove the US naval threat from the flank, which could only be the Dutch East Indies and as such create the pretext for a war between the US and Japan (the secondary motivation) and as a consequence of the Axis alliance with main prize Germany. Pearl Harbor was a well anticipated pawn sacrifice, designed to overcome the resistance of the American public and warm them for war. But I digress.

    In 1892, the first Dutch oil was produced in Sumatra, 33 years after the Drake well, Titusville, Pennsylvania, August 28, 1859, and “Royal Dutch” was born (“Koninklijke Olie” as it is still known here in Holland)

    http://mediterraneanwar.com/postimgs/koiidpvhvg19391953jb.jpg

    The Russians btw drilled a 21 m well in Baku as early as 1846.

    But Drake is iconic, mainly because of American media power and the first use of steam engines for the drilling.

    https://en.wikipedia.org/wiki/History_of_the_petroleum_industry

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