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39-532: Shell Australia is the Australian subsidiary of Shell . Shell has operated in Australia since 1901, initially delivering bulk fuel into Australia, then establishing storage and distribution terminals, oil refineries, and a network of service stations. It extended its Australian activities to oil exploration, petrochemicals and coal mining, and became a leading partner in Australia's largest resource development project,

78-405: A corporate , although this term can also apply to cooperating companies and their subsidiaries with varying degrees of shared ownership. A parent company does not have to be the larger or "more powerful" entity; it is possible for the parent company to be smaller than a subsidiary, such as DanJaq , a closely held family company, which controls Eon Productions , the large corporation which manages

117-471: A brand licence arrangement. In May 2011, Royal Dutch Shell finalised its investment for the world's first floating liquefied natural gas (FLNG) facility. Shell had explored the concept of a FLNG in Namibia in the 1990s, but was abandoned due to unfavourable economic conditions. The initiative was relaunched in 2007 following the discovery of the offshore Prelude field located off Australia's north-west coast and

156-476: A definition that provides that "control" is "the capacity of an entity to dominate decision-making, directly or indirectly, in relation to the financial and operating policies of another entity so as to enable that other entity to operate with it in pursuing the objectives of the controlling entity". This definition was adapted in the Australian Corporations Act 2001 : s 50AA. Furthermore, it can be

195-621: A detergent alkylate plant at Geelong and a petrochemical plant at Clyde. Its oil development arm was very active in the 1960s exploring large areas of onshore Australia as well as offshore opportunities. In 1984, domestic sales of LNG from the North West Shelf began, and a year later, Shell and its joint venture partners signed a sales and purchase agreement for North West Shelf LNG with eight Japanese electricity and gas utilities. By this stage Shell had increased its holding in joint venture operator Woodside Petroleum from 21% to 40%. The company

234-404: A joint arrangement (joint operation or joint venture) over which two or more parties have joint control (IFRS 11 para 4). Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The Companies Act 2006 contains two definitions: one of "subsidiary" and

273-597: A journey of 5,800 km (3,600 mi) from its construction site in South Korea, Prelude arrived on site in Western Australian waters. It was expected to become operational in 2018. On 26 December 2018, Royal Dutch Shell announced that initial production had begun at Prelude . Shell said that wells had been opened and that the start-up and ramp-up phases were underway. Prelude was shut down in February 2020 after

312-432: A judgment against the parent if they can pierce the corporate veil and prove that the parent and subsidiary are mere alter egos of one another. Thus any copyrights, trademarks, and patents remain with the subsidiary until the parent shuts down the subsidiary. Ownership of a subsidiary is usually achieved by owning a majority of its shares . This gives the parent the necessary votes to elect their nominees as directors of

351-496: A reported electrical problem. The platform had previously suffered two incidents that saw the unintended release of gas, which NOPSEMA described as "dangerous". It restarted production in January 2021. The ship's electrical supply was disrupted by a small fire on 2 December 2021. This led to the cessation of production and the evacuation of most of the crew. As a result of repeated environmental and safety mishaps, NOPSEMA ordered

390-455: A subsidiary undertaking, if: The broader definition of "subsidiary undertaking" is applied to the accounting provisions of the Companies Act 2006, while the definition of "subsidiary" is used for general purposes. In Oceania , the accounting standards defined the circumstances in which one entity controls another. In doing so, they largely abandoned the legal control concepts in favour of

429-522: A useful part of the company that allows every head of the company to apply new projects and latest rules. Prelude FLNG Prelude FLNG is a floating liquefied natural gas (FLNG) platform owned by Shell plc and built by the Technip – Samsung Consortium (TSC) in South Korea for a joint venture between Royal Dutch Shell , KOGAS , and Inpex . The hull was launched in December 2013. It

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468-426: Is 488 metres (1,601 ft) long, 74 metres (243 ft) wide, 105 m (344 ft) tall, and made with more than 260,000 tonnes of steel, beating Seawise Giant (the previous record holder) as the world's longest vessel. The vessel displaces around 600,000 tonnes when fully loaded, more than five times the displacement of a Nimitz -class aircraft carrier . It is the world's largest FLNG platform, as well as

507-997: Is a subsidiary/child company of the ultimate parent company, while a second-tier subsidiary is a subsidiary of a first-tier subsidiary: a "grandchild" of the main parent company. Consequently, a third-tier subsidiary is a subsidiary of a second-tier subsidiary—a "great-grandchild" of the main parent company. The ownership structure of the small British specialist company Ford Component Sales, which sells Ford components to specialist car manufacturers and OEM manufacturers, such as Morgan Motor Company and Caterham Cars , illustrates how multiple levels of subsidiaries are used in large corporations: The word "control" and its derivatives (subsidiary and parent) may have different meanings in different contexts. These concepts may have different meanings in various areas of law (e.g. corporate law , competition law , capital markets law ) or in accounting . For example, if Company A purchases shares in Company B, it

546-449: Is an important innovation, which reduces costs and removes the need for long pipelines to land-based LNG processing plants. However, fitting all the equipment onto a single floating facility was a significant challenge. The system is designed to withstand Category 5 cyclones , although workers may be evacuated before that on an EC225 rescue helicopter . According to plans, it will produce 110,000 BOE per day. On 25 July 2017, after

585-489: Is one of six participants and holds a 16.67% equity stake, alongside five other investors: BP , BHP Billiton Petroleum , Chevron , Mitsubishi / Mitsui and Woodside . In August 2014, Shell sold its Australian refinery in Geelong and petrol stations for A$ 2.9 billion (US$ 2.6 billion) to Vitol , a Geneva based company. Vitol operates these assets as Viva Energy , which maintains Shell branding on its service stations under

624-497: Is possible that the transaction is not subject to merger control (because Company A had been deemed to already control Company B before the share purchase, under competition law rules), but at the same time Company A may be required to start consolidating Company B into its financial statements under the relevant accounting rules (because it had been treated as a joint venture before the purchase for accounting purposes). Control can be direct (e.g., an ultimate parent company controls

663-623: Is predicted to speed up the process and reduce the environmental impact. Shell sponsored the Shell Aria , a contest for young Australian operatic singers, held in conjunction with the Australian National Eisteddfod in Canberra from 1955. Shell was the sponsor of Dick Johnson Racing from 1987 until 2004 . Having remained as a minor sponsor, it again became title sponsor for the rebranded DJR Team Penske in 2017 . It also returned as

702-461: Is the main supplier of automation systems and uninterruptible power supply systems. By July 2015, all 14 gas plant modules were installed. Prelude FLNG was approved for funding by Shell in 2011. Analyst estimates in 2013 for the cost of the vessel were between US$ 10.8 to $ 12.6 billion. Shell estimated in 2014 that the project would cost up to US$ 3.5 billion per million tons of production capacity. Competitive pressures from an increase in

741-439: Is the only topside module subcontracted. Other equipment such as subsea wellheads were constructed at other locations around the world. It was launched on 30 November 2013 with no superstructure (accommodation and process plant). The vessel is moored by its turret to 16 seabed driven steel piles, each 65 m (213 ft) long and 5.5 m (18 ft) in diameter. Subsea equipment was built by FMC Technologies, and Emerson

780-464: The James Bond franchise. Conversely, the parent may be larger than some or all of its subsidiaries (if it has more than one), as the relationship is defined by control of ownership shares, not the number of employees. The parent and the subsidiary do not necessarily have to operate in the same locations or operate the same businesses. Not only is it possible that they could conceivably be competitors in

819-624: The North West Shelf , Gorgon , Browse Basin , onshore coal seam gas Surat and Bowen Basins in Queensland . It also maintains a substantial exploration portfolio in Australia with major representation in permits and reserves offshore Western Australia and the Northern Territory . A new head office in King Square, Perth opened in January 2016. Shell's involvement in Australia began in 1901 when bulk fuel handling facilities commissioned by

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858-642: The North West Shelf Venture . In August 2014, Shell sold its downstream business in Australia, including its Geelong Oil Refinery and 870 retail sites, along with its bulk fuels, bitumen, chemicals and part of its lubricants businesses, to the Dutch firm Vitol , for A$ 2.9 billion. Aside from its aviation fuel business which was retained, Shell's remaining Australian activities are in upstream businesses, comprising exploration, liquified natural gas (LNG) and onshore coal seam gas. Shell holds large reserves in

897-576: The 'Shell' Transport and Trading Company of London at Gore Bay , Sydney and on leased land in Melbourne , near Williamstown railway station . The arrival of the ship Turbo on 3 June was the first ever delivery of bulk kerosene to Australia. In 1903, the tanker SS  Petriana – owned by the Shell/Royal Dutch joint venture Asiatic Petroleum Company – was wrecked outside of Port Phillip Bay , causing Australia's first major oil spill. In 1905,

936-973: The Shell Transport and Trading Company and the Royal Dutch Petroleum Company established the British Imperial Oil Company in Australia as a joint venture. In 1916, Shell began bulk delivery to garages equipped with pumps. In 1926 it acquired the Neptune Oil Company ; a year later the British Imperial Oil Company was renamed the Shell Company of Australia, and in 1928 it purchased the Clyde Refinery in Sydney. In 1954, Shell opened its second oil refinery in Geelong, and in 1959 established

975-536: The deck, that will take in the equivalent of 17 thousand cubic metres (110 thousand barrels) of oil per day in natural gas and cool it into liquefied natural gas for transport and sale in Asia. The hull of the vessel was completed in December 2013 and the Prelude was scheduled to start producing LNG in 2016—analysts estimated the total cost of construction at more than US$ 12 billion. In December 2018, production started at

1014-591: The facility. The company has a 67.5 percent hold, alongside investors CPC Corporation , Inpex Corporation, and Korea Gas Corporation . In July 2011, the Federal Government gave approval for the company to drill an exploration well 50 kilometres (31 mi) to the west of the Ningaloo Marine Park . The drilling operation will occur at depths of around 1,300 metres (4,300 ft), the deepest ever in Australian waters. In February 2019, Royal Dutch Shell

1053-453: The first-tier subsidiary directly) or indirect (e.g., an ultimate parent company controls second and lower tiers of subsidiaries indirectly, through first-tier subsidiaries). Recital 31 of Directive 2013/34/EU stipulates that control should be based on holding a majority of voting rights, but control may also exist where there are agreements with fellow shareholders or members. In certain circumstances, control may be effectively exercised where

1092-815: The largest FLNG facility constructed to date. The main double-hulled structure was built by the Technip Samsung Consortium in the Samsung Heavy Industries Geoje shipyard in South Korea . Construction was officially started when the first metal was cut for the substructure in October 2012. The Turret Mooring System was subcontracted to SBM and built in Drydocks World Dubai , United Arab Emirates. The MEG (monoethylene glycol) reclamation unit by Fjords Processing Norway and built in South Korea

1131-485: The long-term production capabilities of North American gas fields due to hydraulic fracturing technologies and increasing Russian export capabilities may reduce the actual profitability of the venture from what was anticipated in 2011. In 2021, the WAToday news website reported that it was believed that the ship had cost at least US$ 17.5 billion , though Shell has never confirmed the actual cost. The Prelude FLNG system

1170-555: The marketplace, but such arrangements happen frequently at the end of a hostile takeover or voluntary merger. Also, because a parent company and a subsidiary are separate entities, it is entirely possible for one of them to be involved in legal proceedings, bankruptcy, tax delinquency, indictment or under investigation while the other is not. In descriptions of larger corporate structures, the terms "first-tier subsidiary", "second-tier subsidiary", "third-tier subsidiary", etc. describe multiple levels of subsidiaries. A first-tier subsidiary

1209-770: The official fuel supplier for the series, having been so between 1987 and 2001 . Subsidiary The subsidiary can be a company (usually with limited liability ) and may be a government-owned or state-owned enterprise . They are a common feature of modern business life, and most multinational corporations organize their operations in this way. Examples of holding companies are Berkshire Hathaway , Jefferies Financial Group , The Walt Disney Company , Warner Bros. Discovery , or Citigroup ; more focused companies include IBM , Xerox , and Microsoft . These, and others, organize their businesses into national and functional subsidiaries, often with multiple levels of subsidiaries. Subsidiaries are separate, distinct legal entities for

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1248-479: The other "subsidiary undertaking". According to s.1159 of the Act, a company is a "subsidiary" of another company, its "holding company", if that other company: The second definition is broader. According to s.1162 of the Companies Act 2006, an undertaking is a parent undertaking in relation to another undertaking, a subsidiary undertaking, if: An undertaking is also a parent undertaking in relation to another undertaking,

1287-468: The parent holds a minority or none of the shares in the subsidiary. According to Article 22 of the directive 2013/34/EU an undertaking is a parent if it: Additionally, control may arise when: Under the international accounting standards adopted by the EU a company is deemed to control another company only if it has all the following: A subsidiary can have only one parent; otherwise, the subsidiary is, in fact,

1326-430: The purposes of taxation , regulation and liability . For this reason, they differ from divisions which are businesses fully integrated within the main company, and not legally or otherwise distinct from it. In other words, a subsidiary can sue and be sued separately from its parent and its obligations will not normally be the obligations of its parent. However, creditors of an insolvent subsidiary may be able to obtain

1365-460: The subsidiary, and so exercise control. This gives rise to the common presumption that 50% plus one share is enough to create a subsidiary. There are, however, other ways that control can come about, and the exact rules both as to what control is needed, and how it is achieved, can be complex (see below). A subsidiary may itself have subsidiaries, and these, in turn, may have subsidiaries of their own. A parent and all its subsidiaries together are called

1404-463: The supermajor to not resume production for an indefinite period of time, pending Shell's ability to prove updated practices. According to NOPSEMA, Shell "did not have a sufficient understanding of the risks of the power system on the facility, including failure mechanisms, interdependencies, and recovery", adding that "power loss directly impacted critical safety systems along with the ability to safely evacuate crew by boat or helicopter." In April 2022,

1443-735: Was built for use in the Prelude and Concerto gas fields in the Browse LNG Basin, 200 kilometres (120 mi) off the coast of Australia; drilling and gas production were planned to begin in 2016. The system has a planned life expectancy of 25 years. The Prelude and Concerto fields are expected to produce 5.3 million tonnes of liquid and condensate per year; this includes 3.6 million tonnes of liquefied natural gas, 1.3 million tonnes of condensate, and 400,000 tonnes of liquefied petroleum gas. Natural gas will be extracted from wells and liquefied by chilling it to −162 °C (−260 °F). The ability to produce and offload LNG to large LNG carriers

1482-481: Was estimated to contain about 85 billion cubic metres (3 trillion cubic feet) of natural gas equivalent reserves. The floating vessel to be used for the Prelude field, known as Prelude FLNG , was still being constructed in Geoje , South Korea in mid-June 2014. Promoted as the longest floating structure in the world, the vessel will consist of a processing structure, measuring 93 metres (305 ft) in height from

1521-457: Was granted leases for $ 10 billion (AUS) towards the Surat project, which it will undergo with PetroChina under the joint venture of Arrow Energy. In December 2017, a 27-year deal was agreed in which Arrow would sell output to the company's Queensland Curtis LNG (QCNLG) project. It will use infrastructure from the company's QCLNG project do develop the biggest coal seam gas resource in the country, which

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