Shell Acquires Repsol LNG Portfolio

MarineLink.com
Thursday, January 02, 2014

Royal Dutch Shell plc has announced the completion of the acquisition of Repsol S.A.'s liquefied natural gas (LNG) portfolio outside North America for a headline cash consideration of $4.1 billion. As part of the transaction, Shell will also assume $1.6 billion of balance sheet liabilities relating to existing leases for LNG ship charters, substantially increasing the shipping capacity available to Shell's LNG marketing business.

The deal gives Shell an additional 7.2 million tonnes per annum (mtpa) of directly managed LNG volumes. The company's already diverse and flexible portfolio will be boosted with LNG supply in the Atlantic from Trinidad & Tobago, and in the Pacific from Peru.  In addition, it immediately contributes additional cash flow, while requiring limited ongoing capital expenditure.

Since the announcement of the transaction in February 2013, certain value adjustments have been made in accordance with the terms of the sales and purchase agreement. These are expected to lead to a net cash purchase price of $3.8 billion (subject to post closing adjustments), compared to purchase price of $4.4 billion announced in February 2013, and balance sheet liabilities of $1.6 billion, compared to $1.8 billion at the initial announcement. This includes the exercise of pre-emption rights of the BBE power plant in Spain by an existing partner as well as other adjustments such as the financial performance of the portfolio and working capital movements since the effective date of October 1, 2012.

The deal closed in 2014. Shell's capital investment in Q4 2013 will reflect $3.4 billion for this transaction with the remainder of $2.0 billion booked in 2014 of which $1.6 billion is a non cash item relating to finance ship leases. 

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Ship as Lifeboat Concept Disputed by ICV

A recent meeting at the National Transportation Safety Board in Washington, D.C. (attended by International Cruise Victims (ICV) Board representatives) discussed

McDermott Elect G.P. Luquette Board Chairman

Provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide, McDermott International, say that Gary P.

Ill-Considered Energy Policies Threaten US Navy: Report

The United States government has pursued energy policies based on “the mistaken belief in the unproven science that claims carbon dioxide (CO2) emissions

Finance

UK Subsidises 8 Renewable Energy Contracts

The British government on Wednesday awarded investment contracts under a new subsidy regime to eight renewable energy projects, including five offshore wind farms and three biomass plants.

Two Navy Contracts for GD Bath Iron Works

Included in the latest listing of contracts awarded by the US Department of Defense, Navy, are two contracts with General Dynamics Bath Iron Works, Bath, Maine.

NIS Q1 Net Profit Up 18 %

Serbian oil company NIS , majority owned by Gazprom Neft, reported an 18 percent rise in net profit in the first quarter of 2014 on higher sales and improved production efficiency.

LNG

ISS to Support Petrobras Expansion

Inchcape Shipping Services (ISS)  has had its port agency and tanker husbandry services contract significantly enlarged by Petrobras.   The Brazilian government-owned energy giant,

Keystone Backers Keep Their Faith In Embattled Pipeline Plan

Six years after applying to build the Keystone XL pipeline, Canada's frustrated oil industry appears steadfast in its support of the plan even though Washington

U.S. Could Hit Russian Officials With Sanctions

The United States could impose sanctions on a range of Russian officials over the crisis in Ukraine, U.S. State Department spokeswoman Jen Psaki said on Monday.

News

GEIMS Maritime Training accorded highest grade from DGS

GEIMS Maritime Training accorded highest grade from DGS Great Eastern Institute of Maritime Studies (GEIMS) is now the first approved maritime training Institution

BP Gulf Spill Trial Set For January

The high-stakes penalty phase of BP's trial over its role in the 2010 U.S. Gulf of Mexico oil spill will start next January, court officials said on Tuesday,

Canada To Keep Keystone XL Issue Alive With White House

Far from giving up on the Keystone XL pipeline to the United States, Finance Minister Joe Oliver said on Tuesday Canadawould keep the issue alive with the Obama

 
 
Maritime Standards Navigation Offshore Oil Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1365 sec (7 req/sec)