First quarter
Mexico, which started production in the
first quarter of 2014.
Shell started production from second Mars platform in deep-water Gulf of Mexico
In the USA, Shell achieved first production from the Mars B deep-water development (Shell interest 71.5%) in the Gulf of Mexico. The Olympus platform was completed and installed more than six months ahead of schedule, allowing for early production.
Petai development started production
In Malaysia, the Siakap North-Petai development (Shell interest 21%) started production. It is expected to deliver peak production of around 30 thousand barrels of oil equivalent per day (boe/d).
Completion of acquisition of Repsol’s LNG portfolio
The acquisition of part of Repsol S.A.’s LNG portfolio was completed, including LNG supply positions in Peru and Trinidad and Tobago, for a net cash purchase price of $3.8 billion, adding 7.2 million tonnes per annum (mtpa) of directly managed LNG volumes through long-term off-take agreements, including 4.2 mtpa of equity LNG plant capacity.
Discovery and appraisal success in Malaysia and Australia
We discovered oil in the Shell-operated Limbayong prospect (Shell interest 35%) offshore Malaysia, as part of our heartlands exploration programme. We also had a successful appraisal of the Pegaga gas discovery (Shell interest 20%) offshore Malaysia. Shell participated in the non-operated Lympstone gas discovery (Shell interest 50%) offshore Australia.
Shell approves Maharaja Lela South project
In Brunei, the final investment decision (FID) was taken on the Maharaja Lela South (ML South) development (Shell interest 35%). The development is expected to deliver peak production of 35 thousand boe/d.
Second Quarter
Discovery success in the Gulf of Mexico and Malaysia
In Shell’s heartlands exploration programme we announced an oil discovery in the Norphlet play in the deep waters of the Gulf of Mexico with the successful Rydberg exploration well (Shell interest 57.2%). Shell also participated in the Rosmari-1 gas discovery (Shell interest 85%) offshore Malaysia.
Shell completed sell-down of shares in Woodside and sale of Wheatstone interest
Shell completed a sell-down of 78.27 million shares in Woodside Petroleum Limited in Australia for a consideration of $3 billion, reducing Shell’s interest from 23% to approximately 14%.
Also in Australia, Shell completed the sale of its 8% interest in the Wheatstone-lago joint venture and its 6.4% interest in the Wheatstone LNG project, which is under development, for $1.5 billion.
Shell completed sale of Eagle Ford acreage, South Texas
In the USA, Shell completed the divestment of its 100% interest in approximately 106,000 net acres of the Eagle Ford liquids-rich shale for a consideration of $0.6 billion, including closing adjustments.
Shell completed the sale of the majority of the Downstream business in Italy
In Italy, Shell completed the sale of its retail, supply and distribution logistics and aviation businesses. Under this agreement, Shell’s retail network will be rebranded in the country.
Third Quarter
and offloading facility off the coast
of Nigeria.
First oil produced from the Bonga North West deep-water project in Nigeria
In Nigeria, Shell announced first production from the Shell-operated Bonga North West deep-water development (Shell interest 55%). Oil from the Bonga North West subsea facilities is transported by a new undersea pipeline to the existing Bonga floating production, storage and offloading (FPSO) export facility. The FPSO has been upgraded to handle the additional oil flow from Bonga North West which is expected to contribute 40 thousand boe/d at peak production.
Shell announced Cardamom start up in deep-water Gulf of Mexico
In the USA, Shell completed its second major production start-up in the deep-water Gulf of Mexico in 2014, with first oil from the Cardamom development (Shell interest 100%). Oil from the Cardamom subsea development is piped through Shell’s Auger platform and is planned to ramp up to 50 thousand boe/d at peak production.
Discovery success in the Gulf of Mexico and Malaysia
In Shell’s heartlands exploration programme, we made a gas discovery at the Shell-operated Marjoram-1 deep-water well (Shell interest 85%) in Malaysia. Shell also announced an oil discovery in the Gulf of Mexico with the Kaikias well (Shell interest 100%) in the Mars basin.
Shell completed the sale of the majority of the Downstream business in Australia
In Australia, Shell completed the sale of its Downstream businesses (excluding aviation). The sale covers Shell’s Geelong refinery and 870-site retail business, along with its bulk fuels, bitumen, chemicals and parts of its lubricants businesses. It also includes a brand licence arrangement and an exclusive distributor arrangement in Australia for Shell Lubricants.
Shell divests US onshore gas assets in Pinedale and Haynesville
In the USA, Shell completed the divestment of its entire interest in the Pinedale dry gas asset in Wyoming. As part of the transaction, Shell received a cash consideration of $0.9 billion, including closing adjustments, and gained an additional 155 thousand net acres in the Marcellus and Utica Shale areas in Pennsylvania. Shell also agreed to sell its entire interest in the Haynesville gas asset in Louisiana, for a consideration of $1.1billion, including closing adjustments.
First production from base oil manufacturing plant in South Korea
Shell began production at a new base oil manufacturing plant in Daesan, South Korea (Shell interest 40%). The plant has the capacity to produce some 13 thousand barrels per day of API Group II base oils.
Fourth Quarter
development in Malaysia, which started
production in the fourth quarter of 2014.
Start-up of Gumusut-Kakap deep-water project
In Malaysia, Shell announced first production from the Shell-operated Gumusut-Kakap deep-water development (Shell interest 29%). The production system is expected to reach a peak oil production of around 135 thousand boe/d.
Discoveries in Gabon and the Gulf of Mexico
Shell announced a frontier exploration discovery offshore Gabon, West Africa (Shell interest 75%). The Leopard-1 well found a substantial gas column with around 200 metres of net gas pay in a pre-salt reservoir. In Shell’s heartlands exploration programme, we made two Shell-operated oil discoveries in deep-water Gulf of Mexico with the Gettysburg W well (Shell interest 80%) in the Norphlet play and the Power Nap well (Shell interest 50%) east of the Vito discovery.
Shell Midstream Partners, L.P. initial public offering
Shell Midstream Partners, L.P., a master limited partnership formed by Shell, announced the pricing of its initial public offering of 40,000,000 common units representing limited partner interests at $23.00 per common unit and raising $1.0 billion in proceeds for Shell. The underwriters exercised the full over-allotment option to purchase an additional 6,000,000 common units from Shell Midstream Partners. The common units began trading on the New York Stock Exchange on October 29, 2014 under the ticker symbol “SHLX”.
Shell agreed sale of some Downstream businesses in Norway
Shell signed an agreement for the sale of its retail, commercial fuels and supply and distribution logistics businesses in Norway. In addition, Shell’s Norwegian aviation business will become a 50:50 joint venture. The sale is subject to regulatory approval and is expected to be completed in 2015.
Shell took FID on two deep-water projects, in Nigeria and the Gulf of Mexico
Shell announced the FID on the Bonga Main Phase 3 project (Shell interest 55%) offshore Nigeria. The development is expected to contribute some 40 thousand boe/d at peak production, through the existing Bonga FPSO export facility.
Shell announced the FID on the Coulomb Phase 2 project (Shell interest 100%) in the Gulf of Mexico. The development is a subsea tie-back into the Na Kika semi-submersible storage platform and is expected to contribute some 20 thousand boe/d at peak production.
