Peter Voser, the CEO of Shell, is reported in today’s FT as suggesting he had brought the company’s debts under control, with some help from the bounce-back in the oil price, and that if oil remained at $80 Shell would not need to add to its borrowings next year.
He was talking at a lunch for a handful of reporters in London, at which the conversation ranged over most aspects of Shell, the company he took over in July. (He was previously chief financial officer.)
Here are some of the other key points from what he said: Read more
President Obama has made an unexpected commitment to attend the Copenhagen climate talks in December. Perhaps more significantly, the US has confirmed that it will make an offer of a cut in greenhouse gas emissions: “in the range of” 17 per cent from 2005 levels by 2020.
Taken together, the two announcements increase the chances that the meeting will come up with a meaningful agreement. Read more
Shell says $80 oil will halt debt rise
Oil group signalled that the steep rise in its debts is ending (FT)
Sinopec, TPG said to have weighed LyondellBasell bid
Move to challenge Reliance’s $10-12bn offer (Bloomberg) Read more
Several executives and analysts have wondered how Eni would pay for the two deals it recently signed. Shelling out $1.35bn for Heritage’s Ugandan assets is in itself not a huge sum for the Italian energy group, nor is the signing bonus attached to its agreement to develop Zubair, Iraq’s fourth largest oil field. The true costs come later. Together the two ventures could take more than $30bn to develop. With Eni acting as the main partner in both, its own bill will be relatively hefty, especially for a company whose gearing is already above its comfort zone.
Here, in his own words, is how Paolo Scaroni, the company’s chief executives,sees it: Read more
E-mail tirade boosts climate sceptics’ cause
Climate change deniers seize chance (FT)
Lex: A vitriolic climate
The debate over climate change is becoming more vitriolic by the week (FT)
Oil majors race to seal deals in Nigeria
Firms want to beat possible law what would raise tax (WSJ)
Lex: Reliance Industries / LyondellBasell
The move makes a lot of sense for the Indian giant (FT)
Heritage Oil backs out of talks with Genel
$6bn merger deal called off (FT) Read more
Iraqi Kurdistan, a siren song of a place with its 40bn+ barrels of untapped oil, continues to push smart people away even as it pulls them closer. For oil investors there, the tune goes something like, “Forget all the licensing disputes and political mess of today and yesterday … It will be sorted out tomorrow … The market demands it, political necessity demands it … And then there will be 40 billion barrels of oil and everyone will get rich”. This tune is starting to sound pathetic.
Heritage Oil today confirmed it plans to sell its Ugandan oil stakes to Eni for $1.5bn – it was applauded as a smart move for one of the best E&Ps in the business. But Uganda was less a part of the equation than Kurdistan. Read more