Is Shell Trying to Reassure Markets Over BG Takeover?
Shell is getting ready to acquire BG, appointing a new head of the Human Resources & Corporate department on Friday. On the one hand, the move suggests that Shell wants to reassure investors about its intentions to proceed with the takeover. On the other hand, it is another proof of the fact that, in case of acquisition, Shell and BG will go through a period of intense restructuring.
‘Ronan is a British Citizen and currently Executive Vice President Human Resources, Upstream International / Rest of the World Operations’ reads a note released on Friday.
The Anglo-Dutch company keeps making the headlines, and the news is not always positive.
On Friday, The Financial Times reported that Shell left an influential climate change lobbying group sponsored by the Prince of Wales ‘amid concern about the company’s attitude to environmental issues.’
The uncertainties over its projects in the Arctic coupled with some poor exploration results further aggravate its situation. Amid low oil prices, some experts also started doubting the feasibility of its $70 billion takeover of BG Group.
On Wednesday, Shell’s CEO Ben van Beurden said that “only something cataclysmic” could derail the plan, adding the acquisition should be completed by early 2016.
Earlier this month, European authorities approved under the EU Merger Regulation the acquisition of BG Group by Royal Dutch Shell, explaining that Shell would not be able to influence prices and that oil and gas markets would remain competitive.
EXPLORATION IN NORWAY
Shell’s Portrush prospect in the Norwegian Sea encountered no hydrocarbons. According to a communiqué released by partner Faroe Petroleum on Friday, the well will be plugged and abandoned.
This well was the first exploration well to be drilled in production licence PL793, awarded in January 2015 (APA 2014) and is located in the Grimsan Basin, Haltenbanken, approximately 20 kilometres south west of the Draugen field and less than 10 kilometres south east of the Njord field.
On Friday, Kvaerner entered into a frame agreement for delivery of steel jacket substructures for future Statoil projects.
A few hours later, the Ministry of Petroleum and Energy wrote it had approved the development plan for the oil discovery Maria on the Halten Bank in the Norwegian Sea.