uploads/2018/03/Upstream.jpg

How Shell’s Upstream Project Pipeline Is Shaping Up

By

Updated

Shell’s upstream portfolio

Royal Dutch Shell (RDS.A) has been quite choosy about retaining only the most competitive assets in its upstream portfolio. It has a large pipeline of projects that are either under construction or in pre-FID (final investment decision) phase. Let’s have a look at its project pipeline.

Article continues below advertisement

Shell’s project pipeline

Shell has a series of projects that it expects to start up in 2018–2019. These include major projects such as Appomattox, Atapu 1, Berbigao, Lula Extreme South, Lula North, Permian, and Fox Creek. All these assets are deep-water projects except Permian and Fox Creek, which are shale assets. All of them are large projects with peak production levels of more than 150 Mboepd (thousand barrels of oil equivalent per day). There are ten other conventional oil and gas and integrated gas projects that are expected to start up in 2018–2019.

All these projects are anticipated to contribute more than 700 Mbpd (thousand barrels per day) of net new production in 2018–2019. The company is also expected to add 2.4 MTPA (million metric tons per annum) of LNG (liquefied natural gas) capacities and 1.2 MTPA of NGL capacity in 2018–2019.

Shell also has projects under construction through which it expects to deliver more than 200 Mbpd of new production by 2020. Shell also has many projects under the pre-FID (final investment decision) phase, which has the potential to deliver more than 700 Mbpd of new production.

In 2017, Shell produced 3.7 MMboepd (million barrel of oil equivalent per day) from its worldwide operations. It’s important to consider that of the total production in 2017, 3 MMboepd, or 82%, was from operations outside of North America.

Shell’s proved reserves

Shell’s proved reserves stood at 12.2 bboe (billion barrels of oil equivalent) in 2017. That’s expected to boost its upstream portfolio in the coming years. Shell’s peers BP (BP), ExxonMobil (XOM), and Chevron (CVX) had reserves of 18.4 bboe, 21.2 bboe, and 11.7 bboe, respectively, in 2017.

In the next part, we’ll look at Shell’s expanding downstream portfolio.

Advertisement

More From Market Realist