AFX Asia (Focus): Shell head seeks to boost business, avoid major deals: Tuesday Jan 17, 2006
LONDON (AFX) -Royal Dutch/Shell chairman Jeroen van der Veer said the company will continue to focus on its upstream operations, while keeping its downstream businesses constant in terms of investment, but profitable.
"We went astray three years ago" in upstream production, van der Veer said in an interview with the Wall Street Journal Europe.
Now Shell is "going for new, big provinces, which have lower probability of success" (but a higher potential upside).
He does not see further large acquisitions in the industry at present, given high oil prices and the recent glut of major mergers.
"Minor acquisitions, below 10 bln usd, they will continue even at the present prices.
"Big acquisitions at this moment, it is very hard for us to see how you can make shareholders money."
He predicts alternative energies will start to play a key role in the global energy business in 20-30 years.
Van der Veer also told the paper that 50-50 stakes in Mideast or Asian oil companies are "logical."
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