Royal Dutch Shell exits Eagle Ford unit in South Texas via sale - report
According to a Wall Street Journal report on Sunday, Royal Dutch Shell would be exiting its South Texas unit from Eagle Ford. The decision from Shell was reportedly based from its USD.2 billion charge it had made in August against its South Texas-based business. Shell had told The Journal that Eagle Ford had not met the size and profitability targets of the former. Shell spokeswoman Kelly op de Weegh added, "(The stake) offers a valuable growth opportunity for another experienced operator."
Big oil companies did not fare well as opposed to its smaller counterparts in the shale business. BHP Billiton and BG Group, oil-and-gas company giants, charged impairment costs againsts its shale assets in the US. In an August Reuters Breakingviews column, the news agency reported that some major companies including Shell came too late in the shale business boom and had overpayed assets that were of lower quality and had not been explored in thorough.
When Reuters contacted Shell for a comment about the report, the company could not be reached outside normal business hours.