- QatarEnergy selects Nakilat to own and operate 25 conventional LNG vessels
- The joint development of the Dorra field between Saudi Arabia and Kuwait is pending the demarcation of the border with Iran
- Minister of Energy reaffirms the UAE’s commitment to adopting clean energy and supporting the Paris Agreement
- The new Hassi Messaoud refinery enjoys the support of the government and President Tebboune
- Increasing electrical interconnection capacities to export electricity beyond borders
- Qatar Energy stops sending liquefied gas tankers through the Red Sea for security reasons
- The inauguration of the Duqm Refinery, the largest joint Gulf project in the refinery sector
- Saudi oil exports are faltering due to Houthi attacks on ships in the Red Sea and Gulf of Aden
- Algeria to host and chair the Gas Exporting Countries Forum summit (February 29 to March 2, 2024)
- Egypt Energy Conference and Exhibition 2024 gives a strong impetus to the global energy dialogue
Shell – BG deal viable at $50 oil price
Royal Dutch Shell has assured investors its US$70 billion acquisition of BG Group is profitable even if the US$50 per barrel oil price persists for further two years.
Prior to the January 27 meeting when the final decision on the deal will be made Shell believes it will have the backing of its investors, Reuters reports citing sources.
Shell’s initial estimations showed the merger would be profitable with a price of around US$70 per barrel but that estimation was reduced further to US$60 per barrel, as Shell revealed further costs cutting options.
Shell’s CFO Simon Henry said to make the deal work at US$50 per barrel, the company intends further capital spending cuts bellow the planned US35 billion for 2016. Share buybacks will also be delayed and script dividends extended as investors will be offered discounted shares instead of cash.
Henry is reportedly set to hold talks with U.S. investors while the company’s CEO Ben van Beurden will hold leading investors in London in order to gather information on which way the shareholders could vote.
Some shareholders have already showed support while others declined to reveal their choice, although, it is expected that over 50 percent of the votes will be in favour of the deal.
