Tanzania to seal its US$30b LNG project in November 2021

TANZANIA – The government of Tanzania is looking to seal a US$30 billion liquefied natural gas (LNG) project within six months, after President Samia Suluhu called for a resumption of negotiations that had stalled for more than a year. One of the developers, Equinor ASA, took a US$982 million impairment on the project in January 2021, which it said would be reversible, after failing to settle terms with Tanzania’s government. Other project partners include Royal Dutch Shell Plc., Exxon Mobil Corp., Ophir Energy Ltd. and Pavilion Energy Pte. This will…

Read More

Shell Egypt set to divest its upstream assets Western Desert for US$926m

EGYPT – Shell Egypt, a subsidiary of Royal Dutch Shell Plc, and one of its affiliates is set to divest their upstream assets in Egypt’s Western Desert to subsidiaries of Cheiron Petroleum Corporation and Cairn Energy PLC for up to US$926 million. The company clarified in a statement Tuesday that the sales and purchase agreement (SPA) worth US$646 million with additional payments of up to US$280 million between 2021 and 2024, contingent on the oil price and the results of further exploration. The deal is expected to complete in the…

Read More

Heirs, Transcorp acquire 45% stake in oil license OML 17 from Shell, Total and Eni

NIGERIA – TNOG Oil and Gas Limited, a company owned by Heirs Holdings alongside Transnational Corporation of Nigeria Plc, has acquired a 45% participating interest in Nigerian oil license OML 17 and related assets from the Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited and ENI. In addition, TNOG Oil and Gas Limited will have sole operatorship of the asset whose financing component was US$1.1 billion, provided by a consortium of global and regional banks and investors. OML 17 has a current production capacity of 27,000 barrels…

Read More

Shell to cut 9,000 jobs by 2022

UNITED KINGDOM – Royal Dutch Shell PLC, a global group of energy and petrochemical company has announced a major restructuring to combat plunging oil prices driven by the coronavirus pandemic warning that it will also spark more asset write-downs in the third quarter. Royal Dutch Shell said in a statement that it would axe between 7,000 and 9,000 positions by the end of 2022, of which 1,500 staff have already agreed to take voluntary redundancy this year. The job cuts would amount to roughly 10 percent of Shell’s total global…

Read More

Shell launches major cost-cutting drive to prepare for energy transition

WORLD – Royal Dutch Shell is looking to slash up to 40% off the cost of producing oil and gas in a major drive to save cash so it can overhaul its business and focus more on renewable energy and power markets, sources told Reuters. Shell’s new cost-cutting review, known internally as Project Reshape and expected to be completed this year, will affect its three main divisions and any savings will come on top of a $4 billion target set in the wake of the COVID-19 crisis. Reducing costs is…

Read More

Shell records a dip in Q4 2019 profits even oil production in Nigeria hits five-year high

NIGERIA – Global oil and gas giant, Royal Dutch Shell, has announced its fourth quarter 2019 results where its profit fell by 23 per cent to $16.5 billion. The company reported a profit of $2.9 billion for the last three months of 2019, down from $5.7 billion in the final quarter of 2018.  The group’s exploration and production division reported a loss of $787m, compared with a profit of $1.6bn in the same quarter a year ago. This was attributed to lower oil prices, decommissioning costs and write-offs related to…

Read More

Shell acquires minority stake in solar energy company d.light

AFRICA – d.light, a leading innovator of solar energy products, announced that Shell’s New Energies business has acquired a minority stake in the company, buying out several early-stage investors as they move on to new projects, underscoring the sector’s increasing commercial viability. Commenting on the investment, d.light co-founder and CEO Ned Tozun said, “We are excited to have Shell join d.light as a shareholder. Shell’s record of leading important, transformative changes within the energy sector, and their alignment with our mission, makes them an ideal partner for d.light as we…

Read More