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Shell writes down assets again

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Oilfield Technology,

As reported by Reuters, Shell has said it will write down the value of oil and gas assets by US$3.5 billion to US$4.5 billion following a string of impairments this year as it adjusts to a weaker outlook.

In an update ahead of its 4Q20 results on 4 February, Shell said the post-tax charge was due in part to impairments on its Appomattox field in the US Gulf of Mexico, the closure of refineries and LNG contracts.

It said some charges involved in its restructuring would be recognised in 2021.

CEO Ben van Beurden on 11 February will unveil Shell’s long-term strategy to sharply reduce its greenhouse gas emissions and expand its low-carbon energy and power businesses.

In its update, the Anglo-Dutch company also said it expects oil and gas production in its upstream division to be around 2.275 to 2.350 million boe/d, slightly higher than in 3Q20.

Production was impacted by the closure of platforms in the Gulf of Mexico due to hurricanes as well as mild weather in Northern Europe.

Shell, the world’s largest retailer, said its fuel sales were expected to be in a range of 4 to 5 million bpd, roughly similar to 3Q20.

Record profits from its marketing business, which includes over 45 000 petrol stations, strongly boosted Shell’s 3Q20 results. The company said, however, that its 4Q20 marketing results were expected to be “significantly lower” than the previous quarter.

Oil and gas trading profits were also set to decline sharply in the fourth quarter from the third quarter, it said.

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Upstream news Shell news US upstream news Oil & gas news


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