According to Wall Street Journal report Royal Dutch Shell plc (ADR)(NYSE:RDS.A) is likely to sell 106,000-acre stake in the Eagle Ford shale located in South Texas.
The company this decision is following Shell’s took a $2.2 billion charge in August against its U.S. shale business. The company has informed WSJ that Eagle Ford holdings did not fulfill the firm’s objective for volume and productivity.
Main oil firms have resist in rich oil-and-gas locations like the Eagle Ford, where small energy companies have flourished. BHP Billiton Limited (ADR) (NYSE:BHP) and BG Group plc (LON:BG) have also taken impairment alleged in opposition to their U.S. shale assets.
Kelly op de Weegh, spokeswoman for the oil company has declared that the venture provides a priceless development prospect for one more experienced operative.
The Wall Street Journal report also said, in the company next project it will keep on the use of its 150 production wells in the same location whereas permitting prospective purchasers to evaluate technical data on the holdings. But the firm does not clearly declared that value of its assets in the locality.
According to a Reuters, Shell has undergone Writedowns which depicted that the company along with other majors came to the shale roar late in the day that the company is overpaying for less well-explored and lower-quality assets.
While Shell in order to boost its business signed a five-year deal with CGI, through these deal the company will support the its Competitive and Technical unit, which is liable for offering services to number of the company’s key portfolios. Through these deal the company will support its Competitive and Technical unit in areas of subsurface and wells, engineering and technology and projects CIO services.
President of CGI’s UK, Tim Gregory has said in the energy industry Shell is a main operator in developing novel solution, and its Competitive and Technical unit’s team is playing a main role in convoy’s a huge variety of technology and applications to fulfill the requirement of its both downstream and upstream and businesses. Royal Dutch Shell plc (ADR) (NYSE:RDS.A) shares surged 0.56% to $37.85 in current session.