Royal Dutch Shell’s acquisition target BG Group beat its 2015 production target, it said on Wednesday, days before shareholder meetings to vote on a $47 billion deal that is expected to go through in coming weeks. <\/p>\n
BG, which will report full-year results on February 5, said it expected 2015 production volumes to have hit 704,000 barrels of oil equivalent per day (boepd), above its guidance of 680-700,000 boed, due to new fields that have come on stream in Australia, Brazil and Norway. <\/p>\n
Shell is banking on access to new resource-rich areas, especially in Brazil, to make the BG acquisition worthwhile. <\/p>\n
“The completion of the BG transaction, which we are expecting in a matter of weeks, will mark the start of a new chapter in Shell, to rejuvenate the company, and improve shareholder returns,” Shell Chief Executive Ben van Beurden said in a statement. <\/p>\n
Shell shareholders will vote on the deal on January 27, followed by a BG shareholder vote on January 28. The deal will result in the loss of 10,000 staff and contractor jobs in 2015-16, they said. <\/p>\n
Many of Shell and BG’s large shareholders have voiced support for the deal but a slump in oil prices below $30 a barrel has raised concern Shell may be overpaying for the smaller rival. <\/p>\n
The fall in oil prices meant BG booked a $700 million impairment charge in the fourth quarter related to fields in the North Sea and Tunisia, it said on Wednesday. <\/p>\n
Shell said it expected full-year core earnings of $10.4-10.7 billion, slightly below a company- provided consensus of $10.8 billion. <\/p>\n
It maintained its 2016 capital investment target of $33 billion and its 2016-18 asset sales projection of $30 billion, provided its acquisition of BG goes through. <\/p>\n
Shell ‘A’ shares were down 3.4 per cent early on Wednesday and BG shares opened 2 per cent lower. <\/p>\n","protected":false},"excerpt":{"rendered":"
Royal Dutch Shell’s acquisition target BG Group beat its 2015 production target, it said on Wednesday, days before shareholder meetings to vote on a $47 billion deal that is expected to go through in coming weeks. BG, which will report full-year results on February 5, said it expected 2015 production volumes to have hit 704,000 barrels of oil equivalent per day (boepd), above its guidance of 680-700,000 boed, due to new fields that have come on stream in Australia, Brazil and Norway. Shell is banking on access to new resource-rich areas, especially in Brazil, to make the BG acquisition worthwhile. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[133],"tags":[],"class_list":["post-51411","post","type-post","status-publish","format-standard","hentry","category-oil-gas"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/51411","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=51411"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/51411\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=51411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=51411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=51411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}