Shell Offers 1H:18 LatAm Updates

(Energy Analytics Institute, Jared Yamin, 1.Aug.2018) – Royal Dutch Shell plc announced the following updates during the first half of 2018.

Mexico

In the deep-water bid round in Mexico in January for the Gulf of Mexico, Shell won four exploration blocks on its own, four with its partner Qatar Petroleum and one with its partner Pemex Exploración y Producción. Shell will be the operator of all nine blocks.

Brazil

Shell won four additional deep-water exploration blocks in Brazil, one block on its own, and three in joint bids with Chevron, Petrobras and Galp. Shell will be the operator of two blocks.

Argentina

In April, Shell signed an agreement to sell its Downstream business in Argentina to Raízen. The sale includes the Buenos Aires refinery, around 645 retail stations, the global commercial businesses, as well as supply and distribution activities in the country. The businesses acquired by Raízen will continue the relationship with Shell through various commercial agreements.

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Shell Provides 3Q:18 Outlook Update

(Energy Analytics Institute, Jared Yamin, 1.Aug.2018) – Royal Dutch Shell plc offered the following outlook for the third quarter of 2018.

Compared with the third quarter 2017, Integrated Gas production is expected to be 40 – 70 thousand boe/d lower, mainly due to divestments and higher maintenance. LNG liquefaction volumes are expected to be at a similar level.

Compared with the third quarter 2017, Upstream production is expected to be 210 – 240 thousand boe/d lower, mainly due to divestments, field decline and higher maintenance, partly offset by volumes from new fields.

Given the unplanned downtime events in the third quarter 2017, refinery availability is expected to increase in the third quarter 2018 compared with the same period a year ago. This will be partly offset by higher planned maintenance.

Oil products sales volumes are expected to be at a similar level compared with the same period a year ago.

Given the unplanned downtime events in the third quarter 2017, chemicals availability is expected to increase in the third quarter 2018 compared with the same period a year ago. This will be partly offset by higher planned maintenance from the turnaround season.

Corporate earnings excluding identified items are expected to be a net charge of $ 400 – 450 million in the third quarter and a net charge of around $1.4 – 1.6 billion for the full year 2018. This excludes the impact of currency exchange effects.

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Pemex Has or Doesn’t Have Money?

(Energy Analytics Institute, Aaron Simonsky, 1.Aug.2018) – If Mexico’s Pemex doesn’t have the necessary funds to invest in deep water or shale activities, how is it the state oil company will have funds to invests in new refineries as proposed by President-elect Andrés Manuel López Obrador?

Join the discussion below or on Reddit:

 

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Pemex Inaugurates 1st Petrol Station with New Image

(Pemex, 1.Aug.2018) – The CEO of Pemex Transformación Industrial stated that the new concept will help the franchise maintain its leadership in the national market​

The first “Flagship” service station of the Pemex franchise, located in the colonia Centro in the municipality of Atizapán Santa Cruz, State of Mexico, was inaugurated today with the purpose of improving the commercial model and renewing the processes of the Petróleos Mexicanos franchise.

During the event, the CEO of Pemex Transformación Industrial (Pemex Industrial Transformation), Carlos Murrieta Cummings, stated that this opening introduces the new concept to maintain the franchise’s leadership in the national market and materializing the evolution of the Pemex gas station network.

Murrieta Cummings reported that a total of 45 service stations will be incorporating the new image this year, 37 will be remodeled and eight will be new.

Our goal, he said, is to comply with the highest service standards, offering the client our experience, reliability, modernity and innovation. The new image breaks with conventions and projects the new Pemex: a highly competitive company in an open market.

On the other hand, Carlos Eduardo Gómez, CEO of the Tianguistenco S.A. de C.V. service stations, stressed that Pemex has complied 100 per cent with the benefits to franchise holders announced in November during the presentation of the new franchise model.

He said that since his gas station began using the new image in mid-June, sales have doubled. “Pemex is the best option in the fuel market,” Gómez said.

Municipal President Javier Guadalupe Pérez Arcadio and the representative of the construction company Deportigas S.A. de C.V, in charge of the remodeling project, Jorge Garduño, were also present at the event.

The new design of the franchise reflects an eagle in full flight, a strong, agile leader extending its wings to meet new challenges.

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