Thursday, 14 February 2013

Shell to invest $4 billion in Nigeria, others in 2013

In line with its strategic drive to grow its upstream businesses, with ongoing selective investment in its downstream activities, Royal Dutch Shell has said $4 billion would be invested in 2013 in “future opportunities” such as Nigeria onshore, Kazakhstan, Iraq, the Arctic and heavy oil.
Shell expects to make a net capital investment of $33 billion in 2013.
$12 billion of this will go into what it calls its upstream and downstream “engines” – the mature, cash-generative businesses in Shell. Some $18 billion will be directed at “growth priorities”: integrated gas, deepwater and resource plays.
Shell said it has around 30 new projects under construction, which it believes will unlock seven billion barrels of resources, and drive continued financial and production growth. After ending 2012 with production averaging 3.4 million barrels of oil equivalent per day, Shell believes it is set to achieve around four million barrel of oil equivalent per day (boepd) in 2017/2018.
“With the first year of our 2012-2015 growth targets completed, Shell is on track for plans we set out in early 2012, despite headwinds last year,” Shell Chief Executive Officer Peter Voser commented in a statement posted on the company’s website.
“Shell is competitive and innovative. We are delivering a strategy that others can’t easily repeat, with unique skills in technology and integration and a worldwide set of opportunities for new investment.”
Although the economic outlook remains uncertain for some of Shell’s key markets, Voser said the prospects for long-term growth in global energy demand remained unchanged, driven by rising world population and improving standards of living in developing countries.
He confirmed Shell’s growth agenda, which aims to deliver $175-$200 billion of total cash flow from operations for 2012-2015, a net capital spending programme of $120-$130 billion, and a competitive dividend for shareholders.

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