In terms of upstream operations in the Americas "Shell is shrinking this portfolio and cost base, with 2014 spending to be reduced by 20 pc compared to 2013, and redirecting onshore investment to the lowest cost gas acreage with the best integration potential, and into on-going exploration in liquids-rich shales,” the company said.
The Telegraph revealed last month that Shell had place three of its ageing operating platforms in the North Sea up for sale after it had raised $2.14bn from the sale of assets in Brazil and offshore Australia. More disposals are expected.
“This approach is driving hard choices on today’s asset base, new opportunities, and disposals plans, where we have recently announced exits from Australia and Italy downstream, Wheatstone LNG in Australia, and US gas-to-liquids,” said van Beurden.
Transforming its US business will be a key challenge for Shell, which is yet to benefit from the revolution in Shale oil and gas after its main prospect failed to deliver returns. The company is currently selling a 700,000 acre area across Texas and Kansas following a re-evaluation of its US shale assets last year.
“I am determined that, by focusing sharply on our three key priorities – better financial performance, in particular in our Upstream Americas and Downstream businesses, enhanced capital efficiency, and continuing strong project delivery, we will continue to grow our cash flow and improve our returns,” said van Beurden.
The company also plans to focus on “future opportunities” in some of the world’s richest resource basins in East Africa, Iraq and Kazakhstan after earnings from exploration and production activities last year were impacted “factors such as losses in North America and the security situation in Nigeria.”
more
{ 0 comments... » Shell reduces investment in US energy read them below or add one }
Post a Comment