A Shell tanker truck supplies fuel to a gas station, operated by Royal Dutch Shell Plc., In Rotterdam, the Netherlands.
Jasper Juinen | Bloomberg | Getty Images
Royal Dutch Shell on Monday said it will write down the value of oil and gas assets between US $ 3.5 billion and US $ 4.5 billion after a series of deteriorations this year as it adjusts to a weaker outlook.
In an update prior to February 4 fourth-quarter results, Shell said the after-tax charge was due in part to deteriorations in its Appomattox field in the Gulf of Mexico in the United States, the closure of refineries and gas contracts. liquefied natural (LNG).
He said some charges related to its restructuring would be recognized in 2021.
In October, Shell, the world’s largest LNG trader, wrote down the value of its LNG portfolio at just under $ 1 billion, focusing on its flagship Prelude project in Australia.
This followed a $ 16.8 billion decline in the second quarter, which also included Prelude and a sharp reduction in its price outlook.
Ben van Beurden CEO on Feb. 11 will present Shell’s long-term strategy to drastically reduce its greenhouse gas emissions and expand its low-carbon energy and electricity businesses.
In its update, the Anglo-Dutch company also said it expects oil and gas production in its rising division to be between 2,275 and 2,350 million barrels of oil equivalent per day, slightly higher than that of third quarter.
Production was affected by the closure of platforms in the Gulf of Mexico due to hurricanes and the temperate climate in northern Europe.
LNG liquefaction volumes are expected to range from 8 to 8.6 million tonnes.
Oil refinery utilization is expected to be between 72% and 76% of capacity during the quarter, reflecting continued weak demand due to the coronavirus pandemic.