Umi

Shell Offshore Inc., a subsidiary of Royal Dutch Shell plc, has conducted a comprehensive damage assessment of its West Delta-143 (WD-143) offshore facilities from Hurricane Ida that revealed significant structural damage. Shell estimates that its WD-143 “A” platform facilities will be offline for repairs until the end of 2021, and that the facilities on the WD-143 “C” platform will be operational in Q4 2021.

The WD-143 facilities serve as the transfer station for production from Shell’s assets in the Mars corridor in the Gulf of Mexico to onshore crude and natural gas terminals.

Read more: Oil prices pare declines with key U.S. Gulf assets offline through 2021

Given the timeline for repairs to WD-143, Shell expects to resume production from our Olympus platform, which flows across the WD-143 “C” platform, in Q4 2021, and from its Mars and Ursa facilities, which flow across the WD-143 “A” platform, in Q1 2022. The Perdido asset in the southwestern Gulf of Mexico was never disrupted by Hurricane Ida, and Shell’s floating production, storage and offloading vessel, the Turritella (also known as Stones), is on line.

At this stage of the recovery, approximately 60% of Shell-operated production in the Gulf of Mexico is back on line.

“As we continue to assess and address the impact of Hurricane Ida on our businesses, our top priorities continue to be the protection and recovery of our people and assets, the community and the environment,” Shell said in a statement Monday.

Investors still have reservations over the fossil fuel industry’s plans to switch from historically high-return oil and gas projects to potentially less profitable low-carbon energy. Shell’s promise that three quarters of the proceeds from the $9 billion sale of its Permian shale business will be returned to shareholders “should alleviate fears any incremental free cash will be sunk into renewables,” Redburn analyst Stuart Joyner said in a note.

Shell and its closest rival BP Plc have similar plans for slashing their greenhouse gas emissions. Neither have been rewarded by investors, with shares for both companies still down some 30% since they announced their strategies.

While BP has explicitly said it will partly fund the expansion of its low-carbon business by selling off some oil and gas assets, Shell has taken a more cautious approach. Instead of spending billions of dollars acquiring big projects, it’s focusing on organic growth -- building electric vehicle charging stations, carbon capture and storage, making alternative fuels at new and existing facilities. Last week it signed off on plans to build a biofuel facility on the site of a large oil refinery in The Netherlands.

It’s questionable whether this gradual expansion can keep pace with the shrinking of its fossil fuel business. This year Shell has handed back concessions in Tunisia, sold its onshore Egyptian assets and is in talks to divest its large onshore oilfield portfolio in Nigeria. The company operated 54 refineries in 2004, but will soon have just five major energy and chemicals sites left.

“Some argue that shrinking and returning capital is the right strategy in a world of energy transition,” analysts at Citigroup Inc. said in a note. But there’s little indication that the sale of Shell’s Permian assets generated any extra value for shareholders, they said.

LONDON (Bloomberg) --Royal Dutch Shell Plc is proving it’s taking a different approach to the energy transition.

Umi updated their phone number.

Umi updated their business hours.

Umi updated their address.