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Shell Mars platform in place after Hurricane Ida

  • Spanish Market: Crude oil
  • 30/08/21

Shell said it appeared its Mars platform in the US Gulf of Mexico did not break free from its anchorage as Hurricane Ida came ashore in Louisiana today.

"Following a flyover this afternoon in the Gulf of Mexico for a general assessment, the United States Coast Guard reported visual confirmation that Mars, Olympus, and Ursa remain on location," the company said, referring to other offshore oil and natural gas production platforms. "Shell has scheduled our own flyover tomorrow afternoon to assess several of our assets, including Mars, Olympus and Ursa in the Mars Corridor."

A Facebook post on 29 August said that the platform 130 miles south of New Orleans had "broken loose" and was "floating free in the Gulf of Mexico." The post, which was later taken down, circulated on social media as the Category 4 hurricane brought destructive wind and storm surge to southeastern Louisiana, causing widespread power outages, infrastructure damage onshore, and shut in nearly 96pc of Gulf oil production.

The same 36,500-ton offshore platform was badly damaged in 2005 by Hurricane Katrina. That storm, which made landfall in Louisiana 16 years ago to the day, ripped subsurface drilling equipment from the floor of the Gulf and blew over a 350-ton drilling rig on the platform.


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02/05/25

Shell’s 1Q profit falls but beats expectations

Shell’s 1Q profit falls but beats expectations

London, 2 May (Argus) — Shell's Integrated Gas business segment delivered a solid performance in the first quarter, helping the UK major exceed analysts' earnings estimates despite ongoing struggles in its downstream Chemicals and Products business. Shell reported a first-quarter profit of $4.8bn, down from $7.4bn a year earlier. Adjusted for inventory valuation effects and one-off items, profit was $5.6bn, surpassing analysts' expectations of $5.3bn. Integrated Gas was Shell's top-performing segment, with a profit of $2.8bn, slightly higher than the first quarter of 2024. Production was down by 6.6pc year-on-year at 927,000 b/d oil equivalent (boe/d), but up 2pc from the previous quarter. Less maintenance at the Pearl gas-to-liquids plant in Qatar had a positive impact on production, Shell said. But the company's LNG volumes were affected by unplanned maintenance and weather constraints in Australia, falling to 6.6mn t from 7.6mn t a year earlier. The Upstream segment posted a profit of $2.1bn, down by 8.5pc on a year earlier but double what it made in the fourth quarter of 2024. The segment was hit with a $509mn tax charge related to the UK's Energy Profits Levy in the first quarter, partially offset by gains from asset sales. Production for the segment was slightly down compared to a year earlier at 1.86mn boe/d, partly due to the divestment of Shell's SPDC business in Nigeria. Overall, Shell's first-quarter production was 2.84mn boe/d, down from 2.91mn boe/d a year earlier but up from 2.82mn boe/d in the previous quarter. Shell expects lower production in the current quarter, ranging from 2.45mn boe/d to 2.71mn boe/d due to maintenance across its Integrated Gas portfolio and the absence of volumes from the SPDC business. The Chemicals and Products segment reported a $77mn loss for the first quarter, compared to a $1.3bn profit a year earlier. Refinery runs were down by 4.8pc year-on-year, and chemicals sales volumes were marginally lower. Despite persistent low margins in the downstream, Shell noted that refining and chemicals margins improved compared to the fourth quarter. Shell expects capital spending for 2025 to be within a $20bn-$22bn range, in line with last year's spending. The company is maintaining its dividend at 35.8¢/share and its share buyback programme at $3.5bn a quarter. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Technical issue behind EIA gas report delay: Update


01/05/25
01/05/25

Technical issue behind EIA gas report delay: Update

Updates with report, EIA staff reduction. New York, 1 May (Argus) — The US Energy Information Administration (EIA) said a technical issue with third-party software was the reason a key natural gas storage report was delayed today. The Weekly Natural Gas Storage Report , which is closely watched by traders and often moves markets, did not appear until 2pm ET, later than its regular scheduled time of 10:30am ET. Inventories grew by 107 Bcf (3bn m³) in the week ended 25 April, according to the report. The latest delay comes amid a flurry of staff departures at the EIA, the energy statistics arm of the US government, as part of ongoing efforts by President Donald Trump's administration to slash the size of the federal work force and curb spending. Around a third of the agency's 350 staff have taken voluntary buyouts, according to a person familiar with the situation. The staff exodus raises concerns about the agency's ability to gather and report timely data and continue providing independent forecasts covering energy production, stocks, demand and prices. Last month, the EIA delayed its monthly Short-Term Energy Outlook (STEO) by two days to take into account significant changes in markets following Trump's sweeping tariffs. And the EIA's release of its 2025 Annual Energy Outlook did not include the in-depth analysis that usually accompanies the report. It was accompanied by a statement from the Department of Energy that said the report reflects the "disastrous path" US energy production was on under the administration of former president Joseph Biden. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Nigeria’s Warri refinery restart threatened by strike


01/05/25
01/05/25

Nigeria’s Warri refinery restart threatened by strike

Lagos, 1 May (Argus) — Plans to restart a section of Nigeria's 125,000 b/d Warri refinery are at risk due to an indefinite strike planned by plant support staff starting on 5 May. The strike is in protest against casualisation, low pay and lack of benefits. A source at the refinery told Argus last week that state-owned NNPC intends to restart the crude and vacuum distillation units (CDU and VDU) and a gas plant in the first week of May. But the support staff have timed their strike to disrupt these plans. Support staff representative Dafe Ighomitedo said the striking workers make up two-thirds of Warri's staff and have been protesting their employment terms since 2015. The refinery has been undergoing a $492mn quick-fix repair contract with South Korean engineering firm Daewoo since June 2022 to restore 60pc of its nameplate capacity. A previous strike called in April 2022 would have delayed the start of the quick-fix programme, but it was called off following appeals from community leaders and a promise from refinery management to address the workers' demands if they supported the programme, Ighomitedo said. Workers were promised an improved salary structure upon the refinery's restart but that promise has not been fulfilled, he added. NNPC did not respond to Argus' requests for comment. NNPC restarted Warri in December last year and crude runs had ramped up to about 78,000 b/d before the refinery was shut again in January "to carry out necessary intervention works on select equipment, including field instruments that were impacting sustainable and steady operations", the company said. NNPC cancelled crude oil allocations to Warri in February and March, reoffering the volumes for export, but said last month that all units at the refinery would be online within a year. By Adebiyi Olusolape Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Ukraine, US sign reconstruction deal


01/05/25
01/05/25

Ukraine, US sign reconstruction deal

London, 1 May (Argus) — The government of Ukraine has agreed a "reconstruction" deal with the US that will establish a fund to be filled with proceeds from new mineral extraction licenses. There are few firm details about how much money will be involved, or how any future extraction contracts will be structured. It appears to be the same agreement that came close to being signed in February , which collapsed after an awkward meeting in the White House between Ukrainian president Volodymyr Zelenskiy and his US counterpart Donald Trump. Washington had pitched the deal in advance as providing stakes in Ukraine's mineral rights, as a form of repayment for past US support and a deterrence against future military incursions by Russia. There is no firm indication from either side that this is the case. Ukraine's economy minister Yulia Svyrydenko said today that 50pc of state budget revenues from new licences will flow into the fund, and the fund would then invest in projects in Ukraine itself. US treasury secretary Scott Bessent said the deal "allows the US to invest alongside Ukraine, to unlock Ukraine's growth assets, mobilise American talent, capital and governance standards", suggesting US companies will be involved in the new licenses. He said the fund will be established with the assistance of the US International Development Finance Corporation. Ukraine was eager to show the deal as a success. Svyrydenko said Kyiv will retain ownership of all resources, and "will decide where and what to extract." Neither does the agreement allow for privatisation of state-owned oil and gas company Ukrnafta or power company Energoatom, nor does it mention any debt obligation to the US, she said. The depth of Ukraine's resources are unclear. The country's geological survey shows deposits of 24 of the EU's list of critical minerals, including titanium, zirconium, graphite, and manganese, along with proven reserves of metals such as lithium, beryllium, rare earth elements and nickel. The IEA estimates Ukraine's oil reserves at more than 6.2bn bl and its gas reserves at 5.4 trillion m³, although it said Russia's annexation of Crimea means Kyiv no longer has access to "significant offshore gas resources". By Ben Winkley, John Gawthrop and James Keates Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil's energy transition spending drops in 2024


30/04/25
30/04/25

Brazil's energy transition spending drops in 2024

Sao Paulo, 30 April (Argus) — Brazil's mines and energy ministry's (MME) energy transition spending shrank by 83pc in 2024 from the prior year, while resources for fossil fuel incentives remained unchanged, according to the institute of socioeconomic studies Inesc. The MME's energy transition budget was R141,413 ($24,980) in 2024, down from R835,237 in the year prior. MME had only two energy transition-oriented projects under its umbrella last year: biofuels industry studies and renewable power incentives, which represented a combined 0.002pc of its total R7bn budget. Still, despite available resources, MME did not approve any projects for renewable power incentives. It also only used 50pc of its budget for biofuel studies, Inesc said. Even as supply from non-conventional power sources advances , most spending in Brazil's grid revamp — including enhancements to better integrate solar and wind generation — comes from charges paid by consumers through power tariffs, Inesc said. Diverging energy spending Brazil's federal government also cut its energy transition budget for 2025 by 17pc from last year and created a new energy transition program that also pushes for increased fossil fuel usage. The country's energy transition budget for 2025 is R3.64bn, down from R4.44bn in 2024. The new program — also under MME's umbrella — has a budget of around R10mn, with more than half of it destined to studies related to the oil and natural gas industry, Inesc said. A second MME program — which invests in studies in the oil, natural gas, products and biofuels sectors — has an approved budget of R53.1mn. The science and technology ministry is the only in Brazil that increased its energy transition spending for 2025, with R3.03bn approved, a near threefold hike from R800mn in 2024. Spending will focus on the domestic industry sector's energy transition, Inesc said. Despite hosting the UN Cop 30 summit in November, Brazil has constantly neglected to address the phase-out of fossil fuels, drawing the ire of climate activists . By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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