Shell share price: Group to sign initial oil deal with Iran

on Dec 7, 2016
Updated: Oct 21, 2019

Royal Dutch Shell (LON:RDSA) and French peer Total are set to sign initial agreements to develop oil and gas fields in Iran, Bloomberg has reported. The move would mark the first European petroleum deals with the country since sanctions eased earlier this year under an agreement to curb Tehran’s nuclear programme. In other Shell news, Reuters reported that the company is set to provide $400 million for an oil venture in Venezuela.

Shell’s share price has gained ground in London this morning, having added 1.88 percent to 2,090.50p as of 10:15 GMT. The advance is part of a broader market rally which has seen the benchmark FTSE 100 index climb 1.36 percent to stand at 6,871.89 points. The group’s shares have gained some 37 percent this year, as compared with an over 10-percent rise in the Footsie.
An Iran oil ministry official told Bloomberg today that Shell and Total will sign ‘heads of agreement,’ or non-binding accords, with the ministry to develop the South Azadegan and Yadavaran oil fields and the Kish natural gas deposit. He, however, did not specify which company will develop which field.

In a separate development, Reuters reported yesterday that Shell would provide some $400 million in financing to boost oil output at Venezuela’s Petroregional del Lago, a joint venture with state-run PDVSA. The agreement aims to increase total production to 344 million barrels between the 2017 and 2035 period, or an average of around 52,400 bpd.
“As a minority partner, (Shell) has decided to start a financing of $400 million for the joint venture we have in the lake,” Reuters quoted Venezuela’s oil minister and PDVSA president, Eulogio Del Pino, as saying in an interview broadcast over PDVSA’s radio station.
As of 10:33 GMT, Wednesday, 07 December, Royal Dutch Shell Plc ‘A’ share price is 2,089.50p.

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