AFTER a long oil and gas downturn which has hit the North Sea hard comments made yesterday by Royal Dutch Shell’s new finance chief may boost hopes brighter times are ahead.
Jessica Uhl, who will play a key role in deciding where the giant spends money, said the North Sea remains an important area in which it will carry on investing.
In her first quarterly results Q&A with the press, the American executive underlined Shell’s faith in the giant fields it is developing West of Shetland, where some hope more big finds will be made.
On Tuesday Shell’s partner in the Shetland projects, BP, said things boded well for the North Sea with the crude price expected to remain above $50 per barrel.
Ms Uhl noted tax breaks introduced amid the crude price plunge that started in 2014 made the North Sea more competitive.
Her remarks indicated the down-sizing Shell launched in the North Sea in response to the oil price fall may be complete, for now at least. It has involved heavy job losses at Shell and pressure on the supply chain.
But Ms Uhl did not rule out further disposals by Shell which has agreed to sell assets that account for around half its North Sea output to Chrysaor for up to $3.8 billion. The portfolio will remain under review as Shell looks to boost returns.
If independents take up the slack left by the likes of Shell it will help, but that’s a big if.
The prospect of a return to the activity and job levels seen in the North Sea during the boom remains very remote.
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