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Released October 07, 2016 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--In late August, it was widely publicized that Royal Dutch Shell plc (NYSE:RDS-A) (The Hague, Netherlands), through its Shell Offshore subsidiary, had agreed to sell its interests in the Brutus offshore platform and the Glider subsea production system. Shell retains rights to explore in those fields and potentially install tiebacks to Brutus, which is one of 13 offshore production platforms being tracked by Industrial Info in which Shell has a stake.
Additionally, it is not the only platform that will soon no longer be part of Shell's fleet. The Cougar production platform is scheduled for abandonment and dismantling, and it has emerged that the Ram Powell production platform is also in the early stages of being sold off. Going by number of production assets in the Gulf, Shell is divesting itself of more than 20% of its assets in the region.
Last year, Shell announced it was pulling out of Arctic exploration, cutting losses after spending billions pursuing oil in the frigid north. This year, Shell has announced the sale of a portion of its Gulf of Mexico assets. The Gulf of Mexico's offshore production has maintained profitability, but only just barely since oil prices have dropped. Similarly, big energy companies have had their margins squeezed by lower commodity prices. Cutting costs such as exploration is a common tactic when margins are tight due to risk of no or low returns on investments. Similarly, freeing up assets, turning them into more flexible cash in hand, allows companies to better respond to market changes that may push slim margins into slim or major losses.
Brutus has a nameplate crude oil production capacity of 100,000 barrels per day (BBL/d) and natural gas capacity of 20 million cubic feet per day (MMSCFD). At the time of installation, Ram Powell had a nameplate capacity to produce up to 60,000 BBL/d of crude oil and 200 MMSCFD of natural gas. The purchase negotiations for Ram Powell are not finalized or as advanced as Brutus; however, maintenance scheduling for the platform has been put on hold until its fate is decided.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Additionally, it is not the only platform that will soon no longer be part of Shell's fleet. The Cougar production platform is scheduled for abandonment and dismantling, and it has emerged that the Ram Powell production platform is also in the early stages of being sold off. Going by number of production assets in the Gulf, Shell is divesting itself of more than 20% of its assets in the region.
Last year, Shell announced it was pulling out of Arctic exploration, cutting losses after spending billions pursuing oil in the frigid north. This year, Shell has announced the sale of a portion of its Gulf of Mexico assets. The Gulf of Mexico's offshore production has maintained profitability, but only just barely since oil prices have dropped. Similarly, big energy companies have had their margins squeezed by lower commodity prices. Cutting costs such as exploration is a common tactic when margins are tight due to risk of no or low returns on investments. Similarly, freeing up assets, turning them into more flexible cash in hand, allows companies to better respond to market changes that may push slim margins into slim or major losses.
Brutus has a nameplate crude oil production capacity of 100,000 barrels per day (BBL/d) and natural gas capacity of 20 million cubic feet per day (MMSCFD). At the time of installation, Ram Powell had a nameplate capacity to produce up to 60,000 BBL/d of crude oil and 200 MMSCFD of natural gas. The purchase negotiations for Ram Powell are not finalized or as advanced as Brutus; however, maintenance scheduling for the platform has been put on hold until its fate is decided.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
