Oil Prices Decline Forces Royal Dutch Shell And Total To Postpone West Africa Offshore Projects
Bidness Etc looks at Royal Dutch Shell and Total SA’s West Africa projects and why the projects are facing delays
By: MICHEAL KAUFMAN: Apr 28, 2015
The decline in global oil prices has led to a downturn in the energy industry, with oil companies being forced to take drastic steps to address the situation. One of the steps that they have had to carry out is announcing project delays. Hence, it comes as no surprise that Total SA (ADR) (NYSE:TOT) and Royal Dutch Shell plc (ADR) (NYSE:RDS.A) have put their West Africa offshore oil projects on hold for the time being, reports the Financial Times (FT).
However, one positive aspect of the delay in the two companies’ respective projects is that they will get time for contractors’ costs to come down. Large oil companies are eyeing the waters off the West-African coast as one of the key sources of crude oil production in the times to come, FT reports. The multi-billion dollar projects include Shell’s offshore Bonga South West project in Nigeria. Bonga South West is Nigeria’s first Deepwater Development that is over 1,000 meters deep.
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