And I don't understand why many say they weren't surprised by the news of a possible sale of Permian? It never even crossed my mind that they could sell Permian.
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Definitely easier to sell onshore where there are a lot of willing buying parties compared with deepwater. Deeptwater will be very challenging to part.
I'm not too surprised. Teasing production out of low porosity rocks isn't something which Shell does well. Overhead/well is too high, HSE restrictions too great and innovation possibly suppressed by process. IMHO Shell wants plays that return significant cash quickly. That's why I don't ever see them as leaders in alternative energy.
Shell needs to make a step change reduction in debt. I think Permian would be one way to do that. Shell will have to continue to divest until the get to something more manageable...maybe 30 billion...however, the company will also be half the size it is right now. If crude is taking a good bounce they may try to sell some of their marquee crude assets at a premium.
Sell Argentina to YPF
What is going to happen to Argentina…?
Get ready to be told about another ‘unsolicited offer’, that Shell just could not resist…
"how are all those new deepwater developments and lng projects going ? canada lng ? prelude, stones, appomattox ?"
It is a mixed bag. The offshore projects, if today's oil price sticks, will more than make up for the issues they have had. I can't comment on the LNG projects. They rely on a strong 25-30 year price for natural gas in Asia. Most don't have long-term contracts in place. Roll the dice and guess what the prices will be in 30 years. Regardless the large LNG projects hold capital value, and Shell can leverage a lot of debt against it, so likely to stick around.
Is the poster trolling? Nearly every shales asset they have sold was claimed to be a core asset until it wasn't. Then Gretchen comes in, with an edict to put on a fresh coat of paint and lower overhead to make it sell for a higher value. Everyone knows this was coming for years now, just had to wait for a buyer.
Permian and Groundbirch are all that is remaining in Shales. They are both out the door within the year.
what is the most pathetic though is leadership not communicating at all about this. perhaps they thought that respect for them could not get any lower anyway so they stopped caring ?
yep. that is shell for you. wait untill the business is taking off and then sell. how are all those new deepwater developments and lng projects going ? canada lng ? prelude, stones, appomattox ? any chance of getting our money back on those ?
Really? You’re not surprised they are selling a business that was only cash flow positive once in 9 years of existence?
Also, Avanti was pre-reshape and energy transition enlightenment.
Avanti happened a year ago! That's like an eternity in this business!
I am surprised because they just did Avanti. I am not surprised due to shrinking unconventional.