Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Kuwait buys 'Shell' Australia gas stake  Join our daily free Newsletter

MENAFN - Arab Times - 21/01/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab Times) Royal Dutch Shell said on Monday it had agreed to sell stakes in a gas project in Western Australia for 1.14 billion to Kuwaiti firm as part of the oil company's drive to improve return on investment. Shell is selling an 8 percent stake in the Wheatstone and nearby Iago gas fields and a 6.4 percent stake in the related Wheatstone liquefied natural gas (LNG) project to the Kuwait Foreign Petroleum Exploration Company (KUFPEC). The move raises KUFPEC's holding in the Chevron-led LNG project, in which the state company is already a partner, to 13.4 percent. "We are making hard choices in our worldwide portfolio to improve Shell's capital efficiency," Shell chief executive Ben van Beurden, who took over two weeks ago, said in a statement



"We are refocusing our investment to where we can add the most value with Shell's capital and technology," he said, adding that the company would remain a major player in Australia's energy industry. KUFPEC is focused on using OPEC member Kuwait's oil wealth to diversify into energy projects abroad. Wheatstone, one of the super-sized Australian LNG projects due to come on stream over the next few years, is about 25 percent complete. With some 80 percent of its future production committed to Asian buyers, the project is scheduled to cost about 29 billion. Chevron expects capital spending on it to peak this year. Shell issued a "significant" profit warning for the fourth quarter on Friday, in which it detailed across-the-board problems, less than three months after its third-quarter profits undershot analyst forecasts



Analysts and shareholders said the company's weak results would push the world's number-three investor-controlled energy firm to keep a tighter control on costs after it said 2013 capital expenditure would peak at about 45 billion. Since van Beurden began working alongside outgoing boss Peter Voser at the start of the fourth quarter, the company has cancelled plans to build a gas-to-liquids plant in the United States, raising investor hopes of a tighter spending regime. Shell is not the only big energy company facing increasing investor pressure to hold down spending as costs rise and prospects for higher oil prices wane. At 1.14 billion, the Wheatstone disposal kicks off a year in which Shell said it would significantly step up disposals to keep cash flowing in



Recent media reports have suggested the company's divestments could total 15 billion this year, equivalent to around 6.5 percent of its 232 billion market capitalisation. "The thing that Shell has to do is accelerate divestments and re-instill capital discipline so in that vein it's positive," Santander analyst Jason Kenney said. Analysts and bankers say another of Shell's Australian assets, its 23.1 percent stake in Australian group Woodside Petroleum - worth over 6 billion at current prices - could be put on the block. Shares in Shell traded down 1 percent at 2,153 pence at 0939 GMT, underperforming Britain's blue-chip index. Chevron has a 64.14 percent stake in Wheatstone, which is due to come on stream in 2016. The other stakeholders are Apache Corp with 13 percent, Tokyo Electric Power Co with 8 percent and Kyushu Electric Power Co with 1.46 percent. Through the acquisition, KUFPEC will add 139 million barrels of oil equivalent to its resource base, thereby meeting its strategic reserves target for the next four years



Average production net to KUFPEC will reach an anticipated 18,350 barrels of oil equivalent per day by 2018, with first LNG production commencing in late 2016. Importantly, KUFPEC can in the future supply the LNG directly to KPC on commercial terms. Commenting on the transaction, KUFPEC's Chief Executive Officer, Sheikh Nawaf S. Al-Sabah, stated that "KUFPEC is delivering on its strategic goals of bringing value to the Kuwait oil sector through increased production that has a strategic tie-in with KPC, along with technology transfer and training opportunities to develop Kuwaiti manpower." He further stated that "the production and cash flows from the acquisition will provide stable revenue to KUFPEC for a quarter century." The Wheatstone-Iago Joint Venture comprises the Wheatstone and Iago gas fields, located offshore in Western Australia. The Wheatstone LNG Project, which is operated by Chevron, is one of Australia's largest resource projects and is currently being constructed



The gas produced by the Wheatstone-Iago Joint Venture will be commercialized via the Wheatstone LNG Project. KUFPEC is an international oil company engaged in the exploration, development and production of crude oil and natural gas outside the State of Kuwait. It is currently active in 14 countries with 60 projects in the international upstream sector. Also, KUFPEC is currently working towards achieving its strategy plans aiming to increase its production to 200,000 BOEPD with reserves of 650 MMBOE by year 2020




 


Arab Times




  MENA News Headlines
 Jan 31 2015 - Bahrain's Investcorp to buy Spanish ceramics firmMENAFN
(MENAFN) Bahrain-based Investcorp said that it will be acquiring Fritta, a Spanish company that makes products for the ceramics industry, Arabian Business reported.Fritta produces important items in ...

 Jan 31 2015 - Total wins 10 percent stake in Abu Dhabi oil concessionsMENAFN
(MENAFN) French company Total said that it has signed a deal with the Abu Dhabi National Oil Company (Adnoc) for a 10 cent stake in developing oilfields in Abu Dhabi as part of oil concessions for a ...

 Jan 31 2015 - Iraqi oil exports decline in JanuaryMENAFN
(MENAFN) Iraq, OPEC's second-largest producer, registered a decline in its oil exports from its southern region in January from a record high recorded in the previous month due to shipping delays, ...

 Jan 31 2015 - Vodafone Qatar revenue up 21 percent in 9MMENAFN
(MENAFN) Vodafone Qatar's said its total revenue grew by 21 percent to USD474.59 billion for the nine months ended December 31, 2014, The Peninsula Qatar reported.The company's mobile customer base ...

 Jan 31 2015 - Qatar Airways to acquire 10 percent of IAGMENAFN
(MENAFN) Qatar Airways announced that it has bought nearly 10 percent of the parent company of British Airways and Spain's Iberia, deepening wealthy Qatar's business ties to Europe, Arab News ...

 Jan 31 2015 - Saudi RCJY signs three deals worth USD138.25mMENAFN
(MENAFN) Chairman of the Royal Commission for Jubail and Yanbu (RCJY) signed three contracts worth USD138.25 million to provide essential equipment and develop industrial zones, Arab News ...

 Jan 31 2015 - Saudi- Outspoken prince to launch pan-Arab news channelThe Peninsula
(MENAFN - The Peninsula) An outspoken, billionaire Saudi prince will on Sunday launch a pan-Arab satellite news channel aimed at challenging established networks in the region.Prince Alwaleed bin ...

 Jan 31 2015 - Qaeda in Yemen says France top enemyThe Peninsula
(MENAFN - The Peninsula) The ideological leader of Yemen-based Al-Qaeda in the Arabian Peninsula (AQAP) said Friday that France had surpassed the United States as the top enemy of Islam.With the ...

 Jan 31 2015 - Qaeda group launches assault on Western-backed Syria rebelsThe Peninsula
(MENAFN - The Peninsula) Al-Qaeda's affiliate in Syria battled Western-backed rebels Friday as the jihadists pressed their bid to seize control of northern areas, a monitoring group and rebels ...

 Jan 31 2015 - Iraq- Air strike kills IS 'chemical weapons expert'The Peninsula
(MENAFN - The Peninsula) A US-led coalition air strike killed a chemical weapons specialist with the Islamic State group in Iraq who once worked for Saddam Hussein, US military officers said ...

more...


 






Google

Click to Apply

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help