Shell BG Merger Gets Brazilian Clearance

By MarEx 2015-07-24 17:50:02

Royal Dutch Shell has announced that its recommended combination with BG Group has received unconditional merger clearance from the Brazilian competition authority (CADE), satisfying the first of the pre‐conditions to the combination. Other pre‐conditions include merger clearances in Australia, China and Europe.

Commenting on CADE clearance Shell CEO, Ben van Beurden, said: “The addition of BG’s competitive deep water Brazil position to Shell’s global portfolio is one of the main strategic drivers for the combination. Securing CADE approval at this early stage is a significant deal milestone and reflects not only Shell’s thorough preparation but also the professionalism and efficiency of the Brazilian authorities.”

Following comments made in June, when the recommended combination cleared its first anti-trust hurdle in the United States, van Beurden also re‐confirmed the filing process is well underway in the remaining pre‐conditional and other jurisdictions, and the recommended combination remains on track to complete in early 2016. The pre‐conditions and conditions to the combination are set out in the April 8 deal announcement.

Shell’s deal with BG Group to buy the UK-based company is worth £47 billion ($69.6 billion) in cash and shares.

Since taking over Shell in 2014, van Beurden had been trying to cut costs, and the deal is expected to enable the two oil and gas companies to reduce costs at a time when the industry is suffering from prolonged low oil prices.

Shell is one of the world’s largest energy producers, with a market value of about $192 billion.

Buying BG will add to Shell’s proven oil and gas reserves by 25 percent and to production by 20 percent, including BG’s offshore oil fields in Brazil’s Santos Basin, natural gas reserves in East Africa and the Queensland Curtis LNG project in Australia.

By applying its capabilities to BG’s assets, Shell believes that, by around 2020, the combined group will have two strategic growth businesses – deep water and integrated gas – that could potentially each generate $15-$20 billion in cash flow per annum. It will also have upstream and downstream capacity to generate a further combined $15-$20 billion in cash flow per annum.

With BG, Shell would be the leading foreign oil company in Brazil.

Shell is also expected to surpass Exxon as the world’s largest publicly traded oil and gas producer by 2018, with output of 4.2 million barrels of oil equivalent per day.

Global LNG production was 246 million tons last year. The new Shell-BG group would have 18 percent of world output.

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Shell‐BG Merger Gets Brazilian Clearance

By MarEx 2015-07-24 17:50:02

Royal Dutch Shell has announced that its recommended combination with BG Group has received unconditional merger clearance from the Brazilian competition authority (CADE), satisfying the first of the pre‐conditions to the combination. Other pre‐conditions include merger clearances in Australia, China and Europe.

Commenting on CADE clearance Shell CEO, Ben van Beurden, said: “The addition of BG’s competitive deep water Brazil position to Shell’s global portfolio is one of the main strategic drivers for the combination. Securing CADE approval at this early stage is a significant deal milestone and reflects not only Shell’s thorough preparation but also the professionalism and efficiency of the Brazilian authorities.”

Following comments made in June, when the recommended combination cleared its first anti-trust hurdle in the United States, van Beurden also re‐confirmed the filing process is well underway in the remaining pre‐conditional and other jurisdictions, and the recommended combination remains on track to complete in early 2016. The pre‐conditions and conditions to the combination are set out in the April 8 deal announcement.

Shell’s deal with BG Group to buy the UK-based company is worth £47 billion ($69.6 billion) in cash and shares.

Since taking over Shell in 2014, van Beurden had been trying to cut costs, and the deal is expected to enable the two oil and gas companies to reduce costs at a time when the industry is suffering from prolonged low oil prices.

Shell is one of the world’s largest energy producers, with a market value of about $192 billion.

Buying BG will add to Shell’s proven oil and gas reserves by 25 percent and to production by 20 percent, including BG’s offshore oil fields in Brazil’s Santos Basin, natural gas reserves in East Africa and the Queensland Curtis LNG project in Australia.

By applying its capabilities to BG’s assets, Shell believes that, by around 2020, the combined group will have two strategic growth businesses – deep water and integrated gas – that could potentially each generate $15-$20 billion in cash flow per annum. It will also have upstream and downstream capacity to generate a further combined $15-$20 billion in cash flow per annum.

With BG, Shell would be the leading foreign oil company in Brazil.

Shell is also expected to surpass Exxon as the world’s largest publicly traded oil and gas producer by 2018, with output of 4.2 million barrels of oil equivalent per day.

Global LNG production was 246 million tons last year. The new Shell-BG group would have 18 percent of world output.

Details

U.S. Representative Seeks To Honor Merchant Marines

By MarEx 2015-07-24 15:55:41

U.S. Representative Susan W. Brooks (R- Ind.) wants to grant World War II Merchant Mariners with the highest civilian honor. Brooks has introduced the Merchant Marine of World War II Congressional Gold Medal Act (HR 2992) to Congress. If passed, the bill would collectively award a Congressional Gold Medal to merchant mariners who served during World War II.

About 215,000 merchant mariners served during the war, entering deadly environments as they delivered supplies to U.S. armed forces in Europe and the Pacific. Merchant Marines suffered higher casualty rates than any other branch of the military, losing between 6,500 to 9,000 seamen.

“The brave actions of the Merchant Marine during World War II proved instrumental in securing victory for the Allied Powers,” Brooks said. “These loyal and courageous men put their lives on the line for the cause of freedom and selflessly answered their nation’s call to duty.”

Brooks is also a co-sponsor of Representative Janice Hahn’s (D- Calif.) “Honoring Our WWII Merchant Mariners Act of 2015 (HR 563). The bill would grant a one-time $25,000 benefit to the roughly 5,000 living WWII mariners.

Merchant Mariners have never received full veteran benefits and were excluded from Veterans and Memorial Day celebrations until 1970.

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Greek Customs Seize Panamanian Vessel

By MarEx 2015-07-24 15:19:42

Greek customs officials have seized 16 armored vehicles from the Panama-flagged roll on, roll off (Roro) carrier Tychy, which was stopped at the Keratsini port in Libya. The roro carrier was bound for the Libyan Khalid port. The illegal cargo consisted of eight armored Typhoon GSS-300 military vehicles, five armored Toyota Land Cruisers, one armored Mercedes and one BMW and another unnamed vehicle.

Shipping these vehicles into Libya is a violation of paragraph nine of United Nations decision 1970/2011 which prohibits the supply, sale or transfer of military or paramilitary equipment into the country.

The vessel is owned Maritime Operators Inc and is commercially managed by Reefer & General Ship Management, both of which are based in Greece.

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Bermeo Group Echebastar Will Receive New Vessel

By MarEx 2015-07-24 14:58:12

The Bermeo Group Echebastar will receive the Euskadi Alai Saturday. The Euskadi Alai is a next generation tuna freezer vessel and is being delivered to Astilleros Zamakona, which is owned by Zamakona Yards. President Pedro Garaygordóbi and Deputy Director of the Echebastar Group, Kepa Echevarria will preside over the ceremony, which takes place in the Port of Bilbao.

The Euskadi Alai was built by the Santurce Shipyard as part of a new design project. The vessel features the most modern technology, aluminum superstructure, ultra-freezing tunnels and safe areas with anti-piracy media. The Alai will join its sister vessels the Izaro and Jai Alai in the Indian Ocean where they will perform fishing activities. The Alai is Santurce’s 738th construction.

The event will be attended by representatives of the Basque Government and Central Government of Seychelles and Port of Bilbao and Zamakona Yards staff and suppliers.

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Carnival settles disability case

Carnival Corp has reached a comprehensive agreement with the US Department of Justice (DOJ) to settle allegations that it violated the Americans with Disabilities Act (ADA).
“This landmark ADA agreement will enable individuals with disabilities the opportunity to equally enjoy a full range of
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