Latest news with #WaelSawan
Time of India
12-07-2025
- Business
- Time of India
Centre approves participating interest transfer among existing oil, gas contractors through management committee nod
New Delhi: The government has approved a key recommendation allowing participating interest (PI) transfer among existing parties in oil and gas contracts through the Management Committee (MC) instead of the current requirement of prior government approval, subject to no change in operatorship. The move applies to Production Sharing Contracts (PSC), Revenue Sharing Contracts (RSC), Discovered Small Fields (DSF), and Coal Bed Methane (CBM) regimes, and is aimed at reducing project delays and easing operations for existing contractors. "Participating Interest (PI) means, in respect of each party constituting the contractor, the undivided share expressed as a percentage of such party's participation in the rights and obligations under the contract." A letter dated July 10 to the Directorate General of Hydrocarbons stated that the recommendation made by the joint working group in June has been 'approved.' The group had proposed that the Management Committee may be empowered to approve PI transfer cases 'where contractor intends to transfer the PI within the existing parties of the contract, subject to no change in operatorship.' The recommendation noted that under current provisions, PI transfer within the existing parties required prior government consent, involving comprehensive technical, financial, and legal due diligence for each case. It stated that since the PI holders have already undergone verification at the contract award stage, such evaluation may be foregone. 'Further, in many cases it has been observed that internal transfer approval can take up to six months of time-period, leading to significant project delays,' the working group on ease of doing business in the Indian upstream sector said. The government has maintained that PI holders will still need to comply with all existing conditions of the contract. The measure comes as part of broader reforms aimed at increasing investor interest and reducing import dependency, with India targeting exploration of 2.5 lakh square kilometres under the 10th round of the Open Acreage Licensing Policy (OALP). As part of its upstream reforms, the Ministry of Petroleum and Natural Gas has also released the Draft Petroleum & Natural Gas Rules, 2025, for public consultation. The draft proposes a stabilisation clause to protect lessees from adverse fiscal or legal changes by allowing compensation or deductions. Stakeholder feedback is invited by July 17. The draft rules also propose mandatory declaration of underutilised pipeline and facility capacity to facilitate third-party access under government oversight. In March 2025, amendments to the Oilfields (Regulation and Development) Act, 1948 were notified to further streamline operations and attract investment in exploration and production. During his visit to Vienna for the 9th OPEC International Seminar earlier this week, Union Minister Hardeep Singh Puri met Shell CEO Wael Sawan, bp CEO Murray Auchincloss, and Vitol Group CEO Russel Hardy, where he highlighted India's push to increase domestic oil and gas production. In another development, the ministry approved open sharing of National Data Repository (NDR) data at zero charge for micro, small and medium enterprises (MSMEs), startups and academic institutions. The joint working group also recommended integrating NDR data with those of ONGC, OIL, Ministry of Mines, Ministry of Coal, Ministry of Earth Sciences, and Central Ground Water Board. The measure is aimed at promoting knowledge sharing and technological development through access to comprehensive datasets, including seismic, well and other geological data.
Yahoo
07-07-2025
- Business
- Yahoo
Shell Says Weak Oil and Gas Trade Hit Second Quarter Profit
(Bloomberg) -- Shell Plc said its second-quarter results will be undermined by weaker contributions from the energy giant's fabled oil and gas trading operation. Trump's Gilded Design Style May Be Gaudy. But Don't Call it 'Rococo.' Foreign Buyers Swoop on Cape Town Homes, Pricing Out Locals Massachusetts to Follow NYC in Making Landlords Pay Broker Fees Are Tourists Ruining Europe? How Locals Are Pushing Back NYC Commutes Resume After Midtown Bus Terminal Crash Chaos Contributions from trading and optimization are expected to be 'significantly lower' for the second quarter compared with the first for segments that span oil and gas trading, London-based Shell said in an update on Monday that saw its shares fall. Shell's sprawling-but-secretive in-house trading business is often one of its biggest profit boosters, and Chief Executive Officer Wael Sawan said in March that its traders haven't lost money in a single quarter over the past decade. A person familiar with the matter said that the nature of second-quarter volatility — being geopolitically driven rather than about supply-demand fundamentals — was challenging. Monday's second-quarter update 'does show how levered the company is to trading volatility,' RBC analyst Biraj Borkahataria said in a note, adding that Shell's results in the downstream point to 'a significantly worse performance' than anticipated. Shell's shares fell as much as 3.3% and were trading at £25.52 ($34.63) at 9:57 a.m. in London. Sawan has focused on cutting costs, boosting reliability and shedding underperforming assets in an effort to close a valuation gap between Shell and its US competitors. The strategy, which includes refocusing the company on its core oil and gas business and an emphasis on shareholder returns, has helped Shell shares outperform its closest rivals this year but left it with questions hanging over its future oil production growth. 'This is a disappointing update from Shell, and we expect it to weigh on the shares in the near term,' Borkahataria said. 'That said, just like one quarter did not make a positive trend, we do not expect this to alter the longer-term thesis.' The weaker contribution from trading eroded an increase in margins from refining and chemicals, although the latter division is nevertheless expected to report a loss when Shell publishes its earnings results in late July. Oil swung wildly in the quarter, diving to a four-year low in April as US President Donald Trump unleashed a global trade war and OPEC+ boosted supply. It then spiked last month as Israel struck targets in Iran, before retreating back below $70 as tensions in the Middle East calmed. Output decreased by nearly 100,000 barrels a day from the first quarter, largely because of Shell's sale of its onshore Nigeria subsidiary and scheduled maintenance. Shell had already notified investors of its expected production with oil and gas volumes in line with previous guidance, given in May. Shell is the world's biggest trader of liquefied natural gas, and has forecast that global demand will grow by about 60% by 2040. Its LNG Canada project, which began its first exports in recent weeks, is one of a slew of new projects coming online globally in the next few years. Liquefaction volumes in the second quarter were in line with the first quarter. Jefferies analyst Giacomo Romeo noted that Shell's earnings also face headwinds from higher costs within the integrated gas division. Shell's trading update comes less than two weeks after the company announced it had no intention of making an offer for BP Plc, in a statement that quelled months of speculation and ties its hands for the next six months under UK takeover rules. The company is scheduled to report second-quarter results July 31. (Updates with analyst reactions and lower shares.) For Brazil's Criminals, Coffee Beans Are the Target Sperm Freezing Is a New Hot Market for Startups SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate China's Homegrown Jewelry Superstar ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Irish Times
07-07-2025
- Business
- Irish Times
Shell says weak oil and gas trade hit second quarter profit
Shell said its second-quarter results will be undermined by weaker contributions from the energy giant's fabled oil and gas trading operation. The contributions from trading and optimisation are expected to be 'significantly lower' for the second quarter compared with the first for segments that span oil and gas trading, London-based Shell said in a statement on Monday. Shell's sprawling but secretive in-house trading business is often one of its biggest profit drivers, and chief executive Wael Sawan said in March that its traders haven't lost money in a single quarter over the past decade. Shell's shares fell as much as 2.6 per cent and were trading at £25.58 (€29.63) at 8.21am in London. The weaker contribution from trading eroded an increase in margins from refining and chemicals, although the latter division is nevertheless expected to report a loss when Shell publishes its earnings results in late July. Oil swung wildly in the quarter, diving to a four-year low in April as US president Donald Trump unleashed his global trade war and OPEC+ boosted supply. It then spiked last month as Israel struck targets in Iran before retreating back below $70 (€60) as tensions calmed. Sawan has focused on cutting costs, boosting reliability and shedding underperforming assets in an effort to close a valuation gap between Shell and its US competitors. The strategy, which includes refocusing the company on its core oil and gas business and an emphasis on shareholder returns, has helped Shell shares outperform its closest rivals this year but left it with questions hanging over its future oil production growth. Output decreased by nearly 100,000 barrels a day from the first quarter, largely because of Shell's sale of its onshore Nigeria subsidiary and scheduled maintenance. Shell had already notified investors of its expected production with oil and gas volumes in line with previous guidance, given in May. Shell is the world's biggest trader of liquefied natural gas, and has forecast that global demand will grow by about 60 per cent by 2040. Its LNG Canada project, which began its first exports in recent weeks, is one of a slew of new projects coming online globally in the next few years. Liquefaction volumes in the second quarter were in line with the first quarter. Shell's trading update comes less than two weeks after the company announced it had no intention of making an offer for BP, in a statement that quelled months of speculation and ties its hands for the next six months under UK takeover rules. The company is scheduled to report second-quarter results July 31st. - Bloomberg
Yahoo
07-07-2025
- Business
- Yahoo
Shell Says Weak Oil and Gas Trade Hit Second Quarter Profit
(Bloomberg) -- Shell Plc said its second-quarter results will be undermined by weaker contributions from the energy giant's fabled oil and gas trading operation. Trump's Gilded Design Style May Be Gaudy. But Don't Call it 'Rococo.' Foreign Buyers Swoop on Cape Town Homes, Pricing Out Locals Massachusetts to Follow NYC in Making Landlords Pay Broker Fees NYC Commutes Resume After Midtown Bus Terminal Crash Chaos In California, Pro-Housing 'Abundance' Fans Rewrite an Environmental Landmark The contributions from trading and optimization are expected to be 'significantly lower' for the second quarter compared with the first for segments that span oil and gas trading, London-based Shell said in a statement on Monday. Shell's sprawling but secretive in-house trading business is often one of its biggest profit drivers, and Chief Executive Officer Wael Sawan said in March that its traders haven't lost money in a single quarter over the past decade. Shell's shares fell as much as 2.6% and were trading at £25.58 ($34.82) at 8:21 a.m. in London. The weaker contribution from trading eroded an increase in margins from refining and chemicals, although the latter division is nevertheless expected to report a loss when Shell publishes its earnings results in late July. Oil swung wildly in the quarter, diving to a four-year low in April as US President Donald Trump unleashed his global trade war and OPEC+ boosted supply. It then spiked last month as Israel struck targets in Iran before retreating back below $70 as tensions calmed. Sawan has focused on cutting costs, boosting reliability and shedding underperforming assets in an effort to close a valuation gap between Shell and its US competitors. The strategy, which includes refocusing the company on its core oil and gas business and an emphasis on shareholder returns, has helped Shell shares outperform its closest rivals this year but left it with questions hanging over its future oil production growth. Output decreased by nearly 100,000 barrels a day from the first quarter, largely because of Shell's sale of its onshore Nigeria subsidiary and scheduled maintenance. Shell had already notified investors of its expected production with oil and gas volumes in line with previous guidance, given in May. Shell is the world's biggest trader of liquefied natural gas, and has forecast that global demand will grow by about 60% by 2040. Its LNG Canada project, which began its first exports in recent weeks, is one of a slew of new projects coming online globally in the next few years. Liquefaction volumes in the second quarter were in line with the first quarter. Shell's trading update comes less than two weeks after the company announced it had no intention of making an offer for BP Plc, in a statement that quelled months of speculation and ties its hands for the next six months under UK takeover rules. The company is scheduled to report second-quarter results July 31. (Updates with context throughout.) For Brazil's Criminals, Coffee Beans Are the Target Sperm Freezing Is a New Hot Market for Startups SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate China's Homegrown Jewelry Superstar ©2025 Bloomberg L.P.
The Star
01-07-2025
- Business
- The Star
Shell may still need M&A after ruling out buying BP
Oil drums containing lubricant oil sit on a conveyor belt at a Royal Dutch Shell lubricants blending plant in Europe. — Bloomberg BRITISH oil and gas giant Shell Plc has quashed a rumour: It's not buying BP Plc. But last week's forceful denial doesn't address why the merger and acquisition (M&A) chatter gained so much traction, which has less to do with the parlous state of BP than with Shell itself. Looking to 2030 and beyond, it does feel like Shell needs to buy something or someone. Since his January 2023 appointment as chief executive officer, Wael Sawan has done a decent job steadying Shell. Spending and debt are down, unprofitable green projects are gone and cash generation is improving. That's all well and good; but viewing such business basics as evidence of success just shows how the wheels had fallen off before his arrival. What's still missing is any sense of a vision to sustain oil and gas production beyond the next five years. To achieve that, sooner or later Shell will need to make acquisitions; it could be a series of projects, or it could be a rival. If that's the case, the best time to pull the trigger could come soon as the plunge in oil prices creates industry-wide distress, creating opportunities. Admittedly, the 'show-us-your-2030-plan' demand is a bit premature – and even a little unfair. Sawan has plenty on his plate from 2025 to 2027 before turning his attention to the next decade. Shell is trying its best to keep the focus on the task at hand now, telling investors that its priority is 'performance, discipline and simplification.' To the company's credit, its narrative is working. Year-to-date, Shell has beaten its Big Oil rivals, with shares up 4%. Exxon Mobil Corp is up by about half of that, Chevron Corp is about flat, while TotalEnergies SE and BP are both down. Crucially, Sawan has turned the page on Shell's tendency for nasty earnings surprises every few quarters. It's almost as if the company had gone back to the years of 'You can be sure of Shell' – one of the advertising industry's best-known taglines. Still, the company's own forecasts, last updated at its March capital markets day, make it clear that fossil-fuel production will decline in the early 2030s. Sawan's options That leaves Sawan with four options: do nothing and let output fall, perhaps betting that oil demand peaks in the early 2030s; use organic opportunities to squeeze out a few extra barrels; make a few bolt-on purchases in the sub-US$10bil range, beefing up the hopper for a few years; or go big with a major acquisition, in the US$50bil-plus range. Filling the production drop from 2030 to 2035, probably in the range of 200,000 to 300,000 barrels per day – or about 10% of its total – is possible without acquisitions. Key projects The company has been expanding its working interest in some of its key projects, effectively buying more barrels with relatively little incremental capital. Only this year, it upped its ownership in the Ursa project in the Gulf of Mexico to 61% from 45% for US$735mil, and in the Bonga field in Nigeria to 67.5% from 55% for US$510mil. More of the same can be a cheap way to boost output, and Shell has a US$1bil to US$2bil wiggle room for such opportunities within its current annual US$20bil to US$22bil capital spending target range. If similar transactions aren't enough, Shell may pursue smaller deals. Is there a case for larger deals? Perhaps. Still possible I believe that a Shell-BP merger is still possible, but it has a much better chance of happening if BP, admitting it's in a corner, makes the first move and the deal becomes a merger at a nil premium. I don't see Shell paying a takeover premium; Sawan has other options for a big transaction. — Bloomberg Javier Blas is a Bloomberg opinion columnist. The views expressed here are the writer's own.
