Shell as a Bidder

[TxPm]

Let me preface this post by saying I have NO inside info or scoop on who the final bidders are. With that being said I would be very surprised if Shell wasn't one of our final bidders. They are on an LNG hunt worldwide with another example of their hunt shown today through their deal with Repsol. I have provides the link to the story below but the main point is Shell has forked out $4.4Bil cash for Repsol's LNG portfolio.

http://www.bloomberg.com/news/2013-02-26...-debt.html

[Gator]

Correction to Repsol Sells Some LNG Assets to Shell for $6.7 Billion

THE HAGUE, The Netherlands, February 26, 2013 /PRNewswire/ --

Royal Dutch Shell plc ("Shell") (NYSE:RDS.A) (NYSE:RDS.B) continues to expand its industry leadership in Liquefied Natural Gas ("LNG"), today agreeing to acquire part of Repsol S.A's ("Repsol") LNG portfolio outside of North America, including supply positions in Peru and Trinidad & Tobago, for a cash consideration of $4.4 billion. Shell will also assume and consolidate balance sheet liabilities predominantly reflecting leases for LNG ship charters of currently $1.8 billion. The balance sheet impacts are subject to final assessment prior to completion of the transaction.

"Shell's world-wide LNG supply position and customer base means we are uniquely positioned to add value to Repsol's LNG portfolio, including through Shell's trading capabilities," said Chief Executive Officer Peter Voser. "By optimising the combined portfolios we will increase our ability to bring LNG to areas that need it the most, adding value for Shell, our partners and our customers."

The acquisition will add a new dynamic to Shell's portfolio, namely LNG capacity in the West Atlantic from Atlantic LNG in Trinidad & Tobago, and in the East Pacific from Peru LNG. These additions will complement Shell's existing LNG capacity in Africa, Asia, Australia, the Middle East and Russia. The acquisition should add some 7.2 million tonnes per annum (mtpa) of LNG volumes through long-term off-take agreements, including some 4 mtpa of equity LNG plant capacity.

Shell expects to add value to this portfolio by optimizing the new LNG flows in our world-wide customer base. Subject to successful completion, the new portfolio is expected to immediately provide additional cash flow to Shell, with limited on-going capital expenditure requirements.

The transaction, which has an effective date of 1 October 2012, is expected to close in the second half of 2013 or early 2014, subject to regulatory approvals and other conditions precedent.

[Putncalls]

Did they just get the plant? They still have to pay for the upstream NG?

[CAC]

Correction to Repsol Sells Some LNG Assets to Shell for $6.7 Billion THE HAGUE, The Netherlands, February 26, 2013 /PRNewswire/ -- Royal Dutch Shell plc ("Shell" (NYSE:RDS.A) (NYSE:RDS.B) continues to expand its industry leadership in Liquefied Natural Gas ("LNG", today agreeing to acquire part of Repsol S.A's ("Repsol" LNG portfolio outside of North America, including supply positions in Peru and Trinidad & Tobago, for a cash consideration of $4.4 billion. Shell will also assume and consolidate balance sheet liabilities predominantly reflecting leases for LNG ship charters of currently $1.8 billion. The balance sheet impacts are subject to final assessment prior to completion of the transaction. "Shell's world-wide LNG supply position and customer base means we are uniquely positioned to add value to Repsol's LNG portfolio, including through Shell's trading capabilities," said Chief Executive Officer Peter Voser. "By optimising the combined portfolios we will increase our ability to bring LNG to areas that need it the most, adding value for Shell, our partners and our customers." The acquisition will add a new dynamic to Shell's portfolio, namely LNG capacity in the West Atlantic from Atlantic LNG in Trinidad & Tobago, and in the East Pacific from Peru LNG. These additions will complement Shell's existing LNG capacity in Africa, Asia, Australia, the Middle East and Russia. The acquisition should add some 7.2 million tonnes per annum (mtpa) of LNG volumes through long-term off-take agreements, including some 4 mtpa of equity LNG plant capacity. Shell expects to add value to this portfolio by optimizing the new LNG flows in our world-wide customer base. Subject to successful completion, the new portfolio is expected to immediately provide additional cash flow to Shell, with limited on-going capital expenditure requirements. The transaction, which has an effective date of 1 October 2012, is expected to close in the second half of 2013 or early 2014, subject to regulatory approvals and other conditions precedent.

Repsol pps is flat on the news.  I assume their deal must be significantly different than the one IOC is expecting?

[Palm]

Correction to Repsol Sells Some LNG Assets to Shell for $6.7 Billion THE HAGUE, The Netherlands, February 26, 2013 /PRNewswire/ -- Royal Dutch Shell plc ("Shell" (NYSE:RDS.A) (NYSE:RDS.B) continues to expand its industry leadership in Liquefied Natural Gas ("LNG", today agreeing to acquire part of Repsol S.A's ("Repsol" LNG portfolio outside of North America, including supply positions in Peru and Trinidad & Tobago, for a cash consideration of $4.4 billion. Shell will also assume and consolidate balance sheet liabilities predominantly reflecting leases for LNG ship charters of currently $1.8 billion. The balance sheet impacts are subject to final assessment prior to completion of the transaction. "Shell's world-wide LNG supply position and customer base means we are uniquely positioned to add value to Repsol's LNG portfolio, including through Shell's trading capabilities," said Chief Executive Officer Peter Voser. "By optimising the combined portfolios we will increase our ability to bring LNG to areas that need it the most, adding value for Shell, our partners and our customers." The acquisition will add a new dynamic to Shell's portfolio, namely LNG capacity in the West Atlantic from Atlantic LNG in Trinidad & Tobago, and in the East Pacific from Peru LNG. These additions will complement Shell's existing LNG capacity in Africa, Asia, Australia, the Middle East and Russia. The acquisition should add some 7.2 million tonnes per annum (mtpa) of LNG volumes through long-term off-take agreements, including some 4 mtpa of equity LNG plant capacity. Shell expects to add value to this portfolio by optimizing the new LNG flows in our world-wide customer base. Subject to successful completion, the new portfolio is expected to immediately provide additional cash flow to Shell, with limited on-going capital expenditure requirements. The transaction, which has an effective date of 1 October 2012, is expected to close in the second half of 2013 or early 2014, subject to regulatory approvals and other conditions precedent.

Repsol pps is flat on the news.  I assume their deal must be significantly different than the one IOC is expecting?

Probably because this is part of the deal announced earlier this year and even last year (note the effective date of Oct 1, 2012), and this was mentioned in the January 29 story:

"The board of Spain's Repsol SA (REP.MC, REPYY) will analyze and likely approve at its meeting Wednesday the sale of the oil company's liquefied natural gas assets to Royal Dutch Shell (RDSA, RDSB), reports Cinco Dias in its Tuesday Internet edition, citing people close to the operation.

The company was initially looking to raise some 3 billion euros ($4 billion), but the final figure could be much lower, in the ballpark of EUR2 billion, the paper adds, citing the same sources.

Repsol's LNG assets are located in Peru, Trinidad and Tobago, Canada and Spain."