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Montevideo, November 17th 2018 - 17:19 UTC

Shell planning to invest billions in Brazil, despite recent purchase of BG group

Saturday, August 8th 2015 - 10:28 UTC
Full article 5 comments
CEO Ben Van Beurden remains steadfast in his plans to buy BG, which will transform Shell into the world’s biggest liquefied natural gas (LNG) supplier. CEO Ben Van Beurden remains steadfast in his plans to buy BG, which will transform Shell into the world’s biggest liquefied natural gas (LNG) supplier.
Petrobras is selling assets worth nearly $14bn amid a vast corruption scandal that has engulfed the company and the government. Petrobras is selling assets worth nearly $14bn amid a vast corruption scandal that has engulfed the company and the government.
Shell, which expects oil prices to return to $90 a barrel by the end of the decade, is also looking at acquisitions in other future key regions including East Africa Shell, which expects oil prices to return to $90 a barrel by the end of the decade, is also looking at acquisitions in other future key regions including East Africa

Royal Dutch Shell is considering investing billions in Brazil, set to become a focal point after the planned acquisition of BG Group, even as it prepares to sell huge chunks of its business to pay for the $70bn deal.

 Despite a broad drive to cut spending in the face of persistently low oil prices, CEO Ben Van Beurden remains steadfast in his plans to buy BG, which will transform Shell into the world’s biggest liquefied natural gas (LNG) supplier.

The group has announced plans to sell around $30bn in assets between 2016 and 2018 to improve its balance sheet and focus on its core deepwater oil and LNG business. The BG deal will make Shell the largest foreign investor in Brazil’s coveted deepwater oil fields.

According to several sources, it has earmarked up to $5bn for new acquisitions, mainly in Brazil where state-run oil company Petrobras is selling assets worth nearly $14bn amid a vast corruption scandal that has engulfed the company and the government.

Shell, which expects oil prices to return to $90 a barrel by the end of the decade, is also looking at acquisitions in other future key regions including East Africa, which has huge reserves and where BG is developing several gas fields in Tanzania, the sources said.

Any new spending, however, is likely to raise eyebrows among investors already worried about Shell’s ability to complete the BG deal.

Top Comments

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  • Brasileiro

    The Western media prefer to see the destroyed Brazil to have Brazil as part of the BRICS.

    In a few years we will have several military bases around the South Atlantic operated by the Marine of Brazil, Russia, China, South Africa and Angola.

    You'd better accept and comply with it, if not you will have a heart attack.

    https://www.youtube.com/watch?v=hWC8J93prJU&index=18&list=FLmXPTu1f8AdGlizWNiASx2A

    Aug 08th, 2015 - 03:46 pm 0
  • brucey-babe

    Brasileiro @ 1
    And we could destroy the lot with one ship anchored in the River Thames !

    Aug 08th, 2015 - 04:53 pm 0
  • ChrisR

    BG used to be British Gas, the monopoly of the UK government for 'gas' distribution and domestic gas appliances.

    Yes, the prices were higher but we had a good safety record, far better than now.

    The rump of the past UK industry then transformed itself to try and monopolise the world gas LNG market but it looks like Shell will get that crown.

    THEN the prices will go up.

    Aug 08th, 2015 - 07:53 pm 0
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