Latest news with #energydeal
Telegraph
3 days ago
- Business
- Telegraph
Miliband urged to investigate North Sea sale
Ed Miliband has been urged to closely scrutinise a planned deal to offload 5pc of Britain's North Sea gas production to an energy tycoon accused of fraud. Andrew Bowie, the shadow Scottish secretary, has called on the Government to review a $500m (£370m) agreement between Shell and Viaro Energy, a start-up run by Francesco Mazzagatti. The British oil giant announced the sale of 11 gas fields to Viaro last July, although the deal has been overshadowed by fraud claims against Mr Mazzagatti, including that he forged documents and misappropriated tens of millions of pounds. A string of large oil producers have sought to sell assets in the North Sea following a net zero crackdown on production, opening the door for relatively unknown companies to enter the industry. Mr Miliband has banned new licences for projects in the area, making it unattractive for major players. Viaro, which has said it will soon control the 'backbone of the UK's energy production and security', is still waiting for the deal to be signed off by the Government. Speaking to The Telegraph, the Tory MP warned of a vacuum appearing in the North Sea as Mr Miliband, the Energy Secretary, drives away established oil companies through higher taxes. 'Take the case of Shell,' he said. 'One of the world's most responsible and respected energy companies is now looking to offload its North Sea assets to Viaro Energy – a firm led by a man accused of fraud and misappropriation. 'These allegations put pressure on Ed Miliband to properly scrutinise this deal. How does it square with the Government's supposed hardening approach to its national security strategy?' Shell to continue with deal Mr Mazzagatti has been thrust into the spotlight ever since announcing the planned takeover of the gas fields, as he simultaneously fights claims of fraud and theft made by a Singaporean trading company that he previously worked for. According to court documents, Alliance Petrochemical Investment (API) alleges that Mr Mazzagatti extracted funds from the business to fund a deal for RockRose Energy in 2020, an oil and gas company previously listed in London. Mr Mazzagatti has repeatedly denied the allegations and claimed they are part of a 'vexatious campaign of defamation, harassment and extortion'. In a defence previously submitted to the High Court, he attacked the 'false' fraud claims and stressed that he was 'not responsible for any unlawful payments'. According to his defence, 'it is denied that Mr Mazzagatti misappropriated any sums from API' or that he 'made any false representations to the board of API'. His defence also claims that he 'was not responsible for overseeing or making payments and did not control API's affairs'. It comes after Mr Mazzagatti has rapidly expanded his North Sea operations in recent years. As well as acquiring RockRose, he also purchased SSE's portfolio of gas exploration and production assets for £120m in 2020. Viaro, which currently produces 250,000 barrels of oil a day, also announced a £7m deal for offshore operator Deltic Energy earlier this summer. Shell has stressed repeatedly that it is proceeding with the sale to Viaro regardless of the claims against Mr Mazzagatti, and said it hopes to complete the deal by the end of this year. A spokesman for the company previously said: 'The sale of Shell's offshore gas assets in the UK southern North Sea to Viaro Energy has received a number of regulatory approvals and is expected to complete this year. 'We have a well-established due diligence process and continue to work with all relevant regulators, including the North Sea Transition Authority.' The Telegraph revealed details of the extensive allegations against Mr Mazzagatti earlier this year. Court papers lodged by API in Singapore claimed that proof of fraud had been obtained by accessing Mr Mazzagatti's bank statements. 'The evidence of Mazzagatti's bank statements is damning and clearly shows direct misappropriation of funds from API by Mazzagatti,' they said. In his response to the claims regarding his bank statements, Mr Mazzagatti said it was a 'contrived and disingenuous' attempt to accuse him of wrongdoing. Calls to scrutinise Viaro's acquisition of the North Sea gas fields come amid a broader debate over the future of the North Sea, particularly after Labour banned all new drilling and raised taxes. It emerged earlier this week that Harbour Energy, Britain's biggest oil and gas producer, is shifting investment out of the UK and into other countries, including Norway, after windfall taxes left it with an 111pc tax rate.
Yahoo
27-06-2025
- Business
- Yahoo
After denying reports of BP takeover, Shell is legally barred from making an offer for six months—and there are no other suitors in sight
Shell doubled down on its denial of acquiring rival BP, claiming it has 'no intention' of making an offer while invoking a U.K. law that forbids Shell from bidding on BP during the next six months with few exceptions. The June 26 news comes after reports that Shell entered early talks to buy BP in what would easily represent the largest energy deal of the century—if not ever. But with Shell seemingly stepping aside to focus on internal performance—at least for now—financially struggling BP is left without any other clear suitors as the British energy giant seeks a turnaround following its 'hard reset' through cost cuts, greater fossil fuel investments, and renewables divestments. 'In response to recent media speculation, Shell wishes to clarify that it has not been actively considering making an offer for BP and confirms it has not made an approach to, and no talks have taken place with BP with regards to a possible offer,' Shell said in a prepared statement. The statement was issued under a rule in the U.K.'s takeover code that bans backtracking on its claims for the next six months unless Shell has the agreement of BP's board, another company bids on BP, or there's a material change in circumstances. Citing the code allows Shell to better reassure its investors that it is focused on its strategy and not massive, debt-laden acquisitions at this moment. BP declined comment. Shell's statement followed a June 25 report from the Wall Street Journal that Shell was in early talks to potentially buy BP, which also came after previous speculation and reports that Shell was studying a possible deal to combine two of the biggest Big Oil giants. 'For now, any takeover of BP by Shell will be a 2026 story, and is unlikely to happen in 2025,' said Kathleen Brooks, research director for the XTB brokerage house. 'BP's share price is still underperforming its global peers, and now that Shell is out of the running as a potential buyer, we do not see BP repairing its position in the coming weeks or months.' Indeed, only a small handful of companies could afford to acquire BP with its large, but underperforming, $80 billion market cap. London-based Shell is the most obvious, but the others—Exxon Mobil and Chevron—are coming off or are amid massive acquisitions of their own. And the U.S. supermajors could have greater antitrust challenges even if they were interested, said Deborah Byers, senior advisor at energy research and investment firm Veriten. Of note is that Shell switched its headquarters to London from the Netherlands three years ago, changing the Royal Dutch Shell name to Shell PLC. 'I think the U.K. government would block a foreign purchase. Maybe Shell is a white knight, and they would be okay from a regulatory standpoint in the U.K.,' Byers said. 'You would think the U.K. would not accept anyone other than Shell—even a U.S. major.' And that's not accounting for all of the debt, headcount, and nation-by-nation regulatory approvals Shell would have to go through to acquire another global energy supermajor, Byers said. Shell and BP each employ nearly 100,000 people, although they are both currently downsizing, while leaner Exxon Mobil, for instance, has about 60,000 employees. Then, Shell would need to undergo a prolonged period of divestments to satisfy the balance sheet and antitrust issues in different nations. 'Why would [Shell] want to do that?' Byers said. 'Do shareholders really want growth? Or do they just want capital discipline and returns—either dividends or buybacks? It's been a while since anyone has been rewarded for growth in this sector.' She said BP shareholders 'have to be patient' as it attempts its financial reset, acknowledging that BP is dealing with investor activism from Elliott Investment Management and others. 'The challenge is, what is that patience timeline?' Byers said. 'Their patience might be two or three quarters, but they probably need a couple of years to really work through some of these issues that are strategic pivots.' Likewise, in a recent analyst note, Biraj Borkhataria of RBC Capital Markets, said BP's debt profile, including remaining liabilities from the 2010 Deepwater Horizon tragedy, represent a 'poisoned chalice for an acquirer.' 'The deal looks dilutive to most of Shell's key metrics, and we do not see the core strategic rationale for the combination,' Borkhataria added. 'With Shell management having consistently communicated strategic priorities to the market since early 2023, the deal would also serve to contradict much of the commentary and potentially undermine credibility with its investor base. Shell would be much better served to continue with its plan and keep M&A smaller and more focused.' This story was originally featured on Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
26-06-2025
- Business
- Yahoo
Shell denies reports of BP megamerger of Big Oil rivals
Shell said 'no talks are taking place' for a potential megamerger with rival BP that would cost more than $80 billion and represent the biggest energy deal of the century. The denial comes on the heels of the Wall Street Journal reporting June 25 that Shell is in early talks to acquire BP in a much-rumored deal. BP has struggled financially in recent years—dealing with investor activism from Elliott Investment Management and others and launching a 'hard reset' in early 2025 that cuts costs, shifts away from renewables, and doubles down on fossil fuels. Shell and BP (ranked No. 13 and No. 25 on the Fortune Global 500, respectively) have the most natural crossover with their London headquarters and global footprint, and a combination, although expensive, could position Shell to better compete with U.S. giants Exxon Mobil and Chevron. With its stock down 17% in the past 12 months—and 25% in a decade—BP's $82 billion market cap not only trails Exxon ($470 billion), Chevron ($250 billion), and Shell ($211 billion), but also France's TotalEnergies ($140 billion) and Houston-based ConocoPhillips ($113 billion), bringing BP's long-term viability into question. 'This is further market speculation. No talks are taking place,' a Shell spokesperson said June 25. 'As we have said many times before, we are sharply focused on capturing the value in Shell through continuing to focus on performance, discipline, and simplification.' In May, when asked about BP, Shell CEO Wael Sawan said the bar is set very high for any acquisitions, and that he was focused on using capital to boost share buybacks. Shell is undergoing its own more modest revamp reemphasizing oil and gas. BP declined comment on June 25, but its CEO, Murray Auchincloss, addressed a potential Shell deal in a recent sit-down interview with Fortune. 'I can't really say anything other than we're focused on our own business, our strategy, and driving it forward. Obviously, the media likes to speculate about this. Investment bankers like to speculate about this,' Auchincloss said. 'But we're just focused on our own business right now. We're happy to have launched the [reset] strategy, and we're going to drive forward and grow cash flow, and that'll make us strong and independent.' The current record for oil and gas deals is the 1999 merger of Exxon and Mobil for more than $80 billion. A year prior, BP's nearly $50 billion acquisition of Amoco set a short-lived record. But BP has dealt with significant struggles since, including the 2010 Deepwater Horizon tragedy in the Gulf of Mexico and, most recently, the 2020 strategy shift to rapidly grow renewables and cut oil and gas production 40% by 2030 as a bet that global oil demand was peaking. Auchincloss, who took over in late 2023 after serving as CFO, has dramatically changed the strategy going forward, doubling down on oil and gas investments from the United States to the United Arab Emirates—both of which see crossover with Shell, including existing partnerships in the U.S. Gulf. 'We just chased too much. We should have narrowed that,' Auchincloss said. 'That's obviously what I've done now. I think the last thing I'd say is stick with what you're good at and continue to grow that as you build new businesses.' BP is selling its U.S. onshore wind portfolio, divesting a 50% stake in its Lightsource solar business, and selling much of its global offshore wind business through a new, fifty-fifty joint venture with Japanese utility JERA. BP also sold a $1 billion stake in the TANAP gas pipeline from the Caspian Sea to Apollo Global Management. A strategic review of its Castrol lubricants business is up next, as well as putting its retail fueling business in Austria up for sale. And BP chairman Helge Lund, who strongly supported BP's push into energy transition businesses, will step down, most likely in 2026, according to the company. Exxon and Chevron are just about the only other players large enough to buy BP. While their assets may not fit as neatly, either U.S. giant could sell off the parts it doesn't want to keep. Shell, meanwhile, has considered selling off some of its chemicals business to shore up capital, which features key assets in Texas, Louisiana, Germany, the U.K., and the Netherlands. This story was originally featured on
Bloomberg
16-06-2025
- Business
- Bloomberg
Abu Dhabi's Huge Energy Deal Boosts Ambitions to Shape Gas Giant
Abu Dhabi is boosting its ambitions to build a top liquefied natural gas producer with its biggest energy deal, as the petrostate targets a market it sees as key to its economic growth. The $19 billion offer for Australia's Santos Ltd. by the investment unit of government-owned Abu Dhabi National Oil Co. would give access to production and export of LNG feeding straight into fast-growing Asian markets. The unit — XRG PJSC — would add Santos to a tally of gas and chemicals deals on the US Gulf Coast, Africa, the Middle East and Europe.
Bloomberg
09-06-2025
- Business
- Bloomberg
Germany's SEFE to Announce 10-Year Deal For Gas From Azerbaijan
Germany's state-owned SEFE is expected to announce a 10-year deal to buy gas from Azerbaijan's state-owned Socar, according to people familiar with the matter. The agreement, which begins immediately, allows the German trading company to buy as much as 15 terawatt-hours of gas per year, the people said, speaking on condition of anonymity. That's equivalent to about 1.5 billion cubic meters per year. The gas is likely to reach Europe via the Trans Adriatic Pipeline, two of the people said. TAP, crosses Northern Greece, Albania and the Adriatic Sea before coming ashore in southern Italy.
