briefing

On 29 January 2015, Royal Dutch Shell confirmed that it intends, subject to regulatory approval, to resume its US Arctic drilling programme at a cost for 2015 of at least $1bn. To date, Shell's Arctic programme has been a failure despite capital expenditure in excess of $6bn. 2012's drilling season beset by multiple operational failings was followed by a 'pause' for 2013 and a forced reversal of 2014 plans because of a US court decision.

Investors will soon be offered further equity (an FPO of 10 per cent) in the Indian Government majority-owned Coal India Limited (CIL).

This FPO will likely position investing in Coal India as an “opportunity” for investors in a robust emerging market, on the basis of widely held assumptions regarding India’s continued reliance on thermal coal for power generation; and it having among the largest, lowest priced coal resources in the world.

Shell investor briefing: This briefing gives an overview of the various setbacks faced by Shell. It also examines the nature of the testing carried out on essential well capping equipment. It suggests some key questions for investors to ask Shell in the light of this year’s Arctic experience.