Shell plc SHEL recently stated that it is deferring the planned maintenance work at the Prelude floating liquefied natural gas facility, which was due to begin in September. The postponement came following the continued industrial action at the site situated off northwest Australia.
A Shell spokesperson mentioned in emailed comments, “As a result of the ongoing Protected Industrial Action and inability to complete preparation work, we are not able to proceed with the planned turnaround at this time.”
The London-headquartered firm said that the extensive maintenance work, called a turnaround, would be delayed until sometime next year contingent on numerous factors, including weather conditions and contractor availability, and when the strike action comes to a conclusion.
Situated in the Browse Basin, Prelude came back into operation in April after being closed last December due to power failures initiated by a fire but was again shut last month due to work stoppages and strikes by workers. SHEL is the operator of the 3.6-million-ton-a-year Prelude facility and owns a 67.5% interest. Other partners in the project include Japan’s Inpex with a 17.5% stake, Korea’s Kogas with 10% ownership and Taiwan’s CPC holding the remaining 5%.
Shell is one of the primary oil supermajors, a group of U.S. and Europe-based big energy multinationals, with operations spanning worldwide. The company, whose peers include ExxonMobil XOM, Chevron CVX and BP BP, is fully integrated as it participates in every aspect related to energy, from oil production to refining and marketing.
ExxonMobil is a bellwether in the energy space with an optimal integrated capital structure that has historically produced industry-leading returns. It owns some of the most prolific upstream assets globally. Other aspects of XOM include the largest global refining operations, substantial chemical assets, dividend history and a credit profile that are second to none in this space.
Meanwhile, Chevron is one of the largest publicly traded oil and gas companies in the world, with operations spanning worldwide. The only energy component of the Dow Jones Industrial Average, San Ramon, CA-based CVX generates around $95 billion in annual revenues and produces more than three million boepd.
BP plc is a British oil and gas supermajor headquartered in London, England. It is a vertically integrated company operating in all areas of the oil and gas industry, including exploration and extraction, refining, distribution and marketing, power generation and trading. The firm is on track to capitalize on the global economy's transition to lower carbon fuels. Apart from focusing strongly on oil production growth, BP has been investing heavily in the renewable energy space.
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