Royal Dutch Shell PLC (NYSE: RDS-A, RDS-B) announced on Nov. 18 that it has discovered 100 million barrels of oil equivalent, the Houston Chronicle reports. Though the quantity of the 100-million-barrel find doesn't exactly stand out, the location of the field will likely help the energy giant reduce exploration costs.
The Hague-based company found the site off the coast of Louisiana last year in the Mars-Ursa basin, which is near three of Shell's already constructed production facilities and subsea pipelines. It will be cheaper for the company to develop this recently discovered field than if Shell were to develop more remote projects, the Chronicle reports.
At the beginning of the year, Shell announced that it would cut $15 billion in costs over the next three years, and this summer the company added that it would reduce capital investment by 20 percent compared to 2014.In September, Shell ceased all future development in offshore Alaskaafter it had already announced it would also not proceed with a multibillion-dollar petrochemical complex in Qatar.
Meanwhile, the company is in the process of acquiring London-based BG Group PLC for $70 billion. The deal was cleared by the Australian antitrust commission on Nov. 19, according to a statement from the company. It cleared in Europe in September, but still has to be cleared in the U.S.
The company recently announced that it identified an additional $1 billion it could save in the acquisition.
Shell employs about 12,000 people in the Houston area.
Sources: Houston Business Journal, Bloomberg Photo