$30 Billion of spending signalled by Shell

Brent Crude: $107,88 (0,00%)

WTI Crude: $92,12 (0,00%)

Offshore.no International » News » Company news

Posted 02.02.2012 13:20:14 av John Bradbury

Shell today spelled out plans for a US $30 billion capex spend this year worldwide and the mature North Sea is set to see a slice of that investment.

Outlining a global strategy for this year Shell says its growth will be driven by 60 new projects worldwide which will involve developing some 20 billion boe of new resources, including major projects encompassing LNG, deepwater, tight gas and liquids-rich shale projects, and traditional play types.

In a new strategy update today presented by chief executive Peter Voser, Shell talks of $17 billion achieved from disposals during the period 2009-11, and $15 billion of acquisitions which it says are “... repositioning the company for new growth.”

Shell's oil and gas resources base on stream has increased by 33%, or 3 billion boe, to 12 billion boe between 2009 and 2011, the Anglo Dutch energy giant says, and it has been maintaining a strong project flow, and has plans to mature another 20 billion boe of new resources for future growth.

Cashflow from operations for 2008-11 reached $136 bn - excluding working capital movements - and Shell predicts operational cashflow should be some 30-50% higher for 2012-15 .

Detailing the investment plans, Shell said: “Net capital investment will be some $30 billion in 2012, with over 80% Upstream, of which 60% will be in North America and Australia.”

Further development opportunities will be matured, after Final Investment Decisions on 17 new projects in 2010-11.

Outlining its growth investment plans, Shell says 60 new projects will unlock some 20 bn boe of new reserves.

On the exploration side, Shell says it will continue drilling in established basins, and selectively expand into frontier acreage, and new plays including liquids-rich shale. Exploration spending was up 30% to $3.6 bn last year and this year Shell says the figure will increase a further 35% to $5 bn.

“Traditional developments in Shell's heartlands will see $6 billion of 2012 investment. This includes extending the life of Shell's mature heartland positions such as the UK North Sea and South East Asia,” the company says. “Around $3 billion of investment in this category will be in countries with large undeveloped resources positions - Nigeria, Kazakhstan and Iraq.”

Investment in LNG will rise 40% to $5 bn to bring up to 8 million tonnes per annum (mtpa) onstream, while another 15 mtpa of LNG is being considered for development. Currently Shell has 8 mtpa under development – all in Australia.

Deepwater oil and gas spending this year will hit $4 bn, with 250,000 boe/d under development, including seven projects in the US Gulf of Mexico, Brazil and Malaysia.

Another $4 bn is earmarked for tight gas and liquids-rich shale and a further $2 bn is allocated for heavy oil projects, including extended oil recovery, mining and upgrades. De-bottlenecking of Canadian oil sands is part of this investment, and the company signalled it is also due to take a final
decision on a 1.1. mtpa carbon capture and storage project – Quest – this year.

Another $6 bn is planned for downstream operations including an expansion at the Port Arthur refinery in the US, and other opportunities are being considered in Qatar, China, and in Brazilian biofuels.

G4 well kill a complete success says Total

Preparing for Middle East expansion

Poseidon poised for Nimrod well

Brynhild bonus

Galia FDP soon

Decommissioning boosted by £10 million in Shetlands