Foreign Oil Headlines: Royal Dutch Shell plc (ADR) (RDS.A)’s Threat, TOTAL S.A. (ADR) (TOT) Steam Cracker, Petroleo Brasileiro Petrobras SA (ADR) (PBR)’s & Rental Prices

Editor’s Note: Royal Dutch Shell plc (ADR) (NYSE:RDS.A), TOTAL S.A. (ADR) (NYSE:TOT), Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR)

Shell’s British headquarters development under threat (The West Australian)
The development of Royal Dutch Shell plc (ADR) (NYSE:RDS.A)’s new British headquarters in London has been thrown into doubt after the government decided to review plans already given the green light by local officials. The Qatari-backed project plans to redevelop the site next to the landmark London Eye wheel on the south bank of the River Thames, creating a 1.45 million square foot complex comprising the existing 27-storey Shell Centre and eight new buildings with shops and offices and 877 homes. Lambeth Council approved the 1 billion pound ($1.6 billion) scheme, which is being developed by Qatari Diar and Canary Wharf Group, in May. Construction was due to start at the end of this year, with a completion date of 2019.


Total SA to close cracker, will invest in making resins, polymers (Akron Beacon Journal)
TOTAL S.A. (ADR) (NYSE:TOT) will shut a money-losing steam cracker at Carling in France and invest 160 million euros ($211 million) in making resin and polymers at the site in a bid to boost profitability of petrochemicals production. The closure in the second half of 2015 will result in a net loss of 210 jobs without redundancies, Europe’s third-biggest oil company said in a statement. The northeastern steam cracker is losing about 100 million euros a year, unions have said.

Rents in Rio Fall First Time Since 2010 as Petrobras Cuts Costs (Bloomberg)
Rental prices in Rio de Janeiro fell last month for the first time in more than three years as Brazil’s economy struggles to gain steam and state-run oil company Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) cuts costs. Prices in the beachside city, host of the 2016 Summer Olympics, fell 0.1 percent last month, according to a housing index by economics research institute FIPE. It was the first contraction since June 2010, said the Sao Paulo-based FIPE, which bases its index on apartments listed by real-estate website ZAP Imoveis.

Shell international E&P chief delivers upbeat North Sea assessment (Seeking Alpha)
Royal Dutch Shell plc (ADR) (NYSE:RDS.A) is committed to a long-term future in the North Sea, upstream international director Andy Brown says, pointing to plans for $2B in annual spending in the region over the next three years. Most of the expense will be devoured by Shell’s sizable non-operated positions in large new projects such as Clair Ridge and Quad 204, both operated by BP; regarding Royal Dutch Shell plc (ADR) (NYSE:RDS.A)’s operated assets, work to improve asset integrity is beginning to show via increased operational efficiency and uptime.

Technip Inks Frame Deal with Petrobras for Projects Modification Services (Rigzone)
Technip announced Tuesday that it has signed a four-year frame agreement with Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) for projects modifications services for the Rio de Janeiro Operations Unit (UO-RIO), including existing offshore platforms located in the Campos Basin area, Brazil. The services comprise basic and detailed design, documentation update, engineering consulting, planning, control and execution supplies for 13 offshore platforms. Technip was previously awarded contracts on some of these projects, most notably designing and constructing the topsides of three of Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR)’s deepwater production semis – P-51, P-52 and P-56 – the largest topsides floatovers onto semi hulls in the world.