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July 17th, 2005:

Daily Mail: Watts is on to a winner despite Russian setback

Daily Mail: Watts is on to a winner despite Russian setback

“SHELL’S remarkable share price rise since last year’s reserves scandal has given ousted chairman Sir Philip Watts a £3m gain in the value of his share options.”: “The oil giant is making so much from sky-high energy prices that its shares shrugged off the shock news that costs of its Sakhalin-2 gas project in Russia have doubled in two years to $20bn(£11.4bn). This hits the terms of Shell’s agreement with Russian gas giant Gazprom last week to swap 25pc of Sakhalin for half of a Gazprom field in Siberia.”

Sunday 17 July 2005

By Brian O’Connor

SHELL’S remarkable share price rise since last year’s reserves scandal has given ousted chairman Sir Philip Watts a £3m gain in the value of his share options.

The oil giant is making so much from sky-high energy prices that its shares shrugged off the shock news that costs of its Sakhalin-2 gas project in Russia have doubled in two years to $20bn(£11.4bn).

This hits the terms of Shell’s agreement with Russian gas giant Gazprom last week to swap 25pc of Sakhalin for half of a Gazprom field in Siberia. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Daily Mail: Sakhalin shock

Daily Mail: Sakhalin shock

“THE way in which the stock market shrugged off the disclosure by Shell of a $10bn cost overrun at its Sakhalin-2 gas project in Russia is astonishing. If a national government were to admit an error on such a scale the finance minister would almost certainly pay with their job.”: “Shareholders need to be assured that the oil giant is husbanding its resources well and is not squandering its oil price windfall. The Sakhalin experience does not suggest that the present management is any more skilled than its predecessor at this.

Posted Sunday 17 July 2005

City Comment

By Alex Brummer

Published Friday 15 July 2005

THE way in which the stock market shrugged off the disclosure by Shell of a $10bn cost overrun at its Sakhalin-2 gas project in Russia is astonishing. If a national government were to admit an error on such a scale the finance minister would almost certainly pay with their job.

In big oil nothing really counts any longer. An oil price close to $60-a-barrel means that the majors and their investors can withstand almost any shocks, including hurricanes in the Gulf of Mexico, without causing a ripple. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

THE BUSINESS: Bidders vie for Shell LPG shortlist

THE BUSINESS: Bidders vie for Shell LPG shortlist

“ROYAL Dutch/Shell will this week launch the $3bn (£1.7bn, €2.5bn) sale of its global Liquefied Petroleum Gas (LPG) business, putting in motion the last major element of its $ 15bn asset sale program after five months of delay.”:

Sunday 17 July 2005

By Richard Orange

ROYAL Dutch/Shell will this week launch the $3bn (£1.7bn, €2.5bn) sale of its global Liquefied Petroleum Gas (LPG) business, putting in motion the last major element of its $ 15bn asset sale program after five months of delay.

The launch of the process comes the day after the company moves to a single listing on the London Stock Exchange this Wednesday. A banker close to the sale told The Business: “The sale process will start at the end of next week.” read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

THE BUSINESS: Lopsided rig exposes oil’s soft underbelly

THE BUSINESS: Lopsided rig exposes oil’s soft underbelly

“Royal Dutch/Shell… revealed on Thursday that costs had doubled at its Sakhalin II gas project to $20bn “…Citigroup argues the cost increase halves the returns from the project from 22% to a lacklustre 11%. But more serious is its effect on Shell’s reputation…”:

Sunday 17 July 2005

By: Richard Orange

July 17, 2005

THE world’s international oil giants must be hoping accidents don’t come in threes: At the start of the week BP’s $1bn (£560m, E820m) Thunderhorse oil platform in the Gulf of Mexico was spotted at a terrifying 20% tilt and feared to be sinking. Royal Dutch/Shell then revealed on Thursday that costs had doubled at its Sakhalin II gas project to $20bn.

Both are flagship projects of such scale that such mishaps would seriously hurt even BP and Shell’s bulging balance sheets. Since the 1990s, oil companies have tended to concentrate their spending on fewer and bigger projects. This is partly in search for sheer economies of scale, and partly the result of pushing into Arctic and deep water territory where only giant projects make sense. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

THE SUNDAY TELEGRAPH: Gazprom leans on Shell to renegotiate

THE SUNDAY TELEGRAPH: Gazprom leans on Shell to renegotiate

“Gazprom, the Russian gas giant, is demanding that Royal Dutch/Shell, the Anglo-Dutch oil major, renegotiates the terms of a planned asset swap because of the soaring costs of Sakhalin-2, a flagship project.”: “…Shell was forced to admit last week that the cost of the Sakhalin-2 gas field project had overrun by an estimated $10bn and could now cost a staggering $20bn.”

Sunday 17 July 2005

By Andrew Murray-Watson (Filed: 17/07/2005)

Gazprom, the Russian gas giant, is demanding that Royal Dutch/Shell, the Anglo-Dutch oil major, renegotiates the terms of a planned asset swap because of the soaring costs of Sakhalin-2, a flagship project.

Under a deal with Shell signed two weeks ago, Gazprom had agreed to take a 25 per cent stake in the huge Sakhalin-2 gas field on Russia’s Pacific coast.

In exchange, Shell would take a 50 per cent stake in the Zapolyarnoye field in Siberia, the world’s fifth largest gas deposit. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

The Independent On Sunday: ‘Elephants’ are a gamble, especially when there are hurricanes around

The Independent On Sunday: ‘Elephants’ are a gamble, especially when there are hurricanes around

“Any schadenfreude felt privately at Shell over BP’s discomfort will have been erased on Thursday after it admitted that a flagship of its own had run into trouble. Costs for Sakhalin Energy, a huge gas project in Siberia, had doubled to $20bn…”:

Sunday 17 July 2005

By Tim Webb

Published: 17 July 2005

“Thunder Horse” is an unfortunate name for BP’s $1bn (£600m) super oil platform: for no known reason, it was left listing by 20 degrees in the Gulf of Mexico last week. “Someone has put Thunder Horse down,” joked one former executive of a rival oil company.

The world’s largest platform, which was due to open next year, is supposed to pump 250,000 barrels of oil per day – two and a half times more than the average deepwater platform, or 4.5 per cent of BP’s total production. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

THE SUNDAY TELEGRAPH: Showdown looms in Watts’s fight with FSA

THE SUNDAY TELEGRAPH: Showdown looms in Watts’s fight with FSA

“The FSA’s notice, published in August, explained why it had decided to fine Shell £17m over the affair. Watts, who was ousted from Shell in March 2004 following the scandal, first complained to the tribunal last September. He claimed that although the FSA report did not refer to him by name, he was effectively identified and prejudiced.”:

Sunday 17 July 2005

By Sylvia Pfeifer (Filed: 17/07/2005)

The bitter dispute between Sir Philip Watts, the former chairman of Shell, and the Financial Services Authority over whether the City regulator violated his rights will come to a head next week.

The Financial Services & Markets Tribunal, which hears appeals against FSA decisions, will hold a preliminary hearing on July 25 on whether the regulator should have given Watts an opportunity to respond before it published its damning findings into Shell’s overstatement of its reserves last year. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

THE SUNDAY TIMES: Five have had their say

THE SUNDAY TIMES: Five have had their say

“Having initially won popular sympathy over their willingness to go to prison for their principles, the so-called Rossport Five now threaten to alienate public opinion over their apparent determination to stay there.”

Sunday 17 July 2005

Having initially won popular sympathy over their willingness to go to prison for their principles, the so-called Rossport Five now threaten to alienate public opinion over their apparent determination to stay there. It has not been a good week for the Mayo men, jailed for refusing to obey a court order that allows Shell to run a gas pipeline from the offshore Corrib field past their homes in Rossport. The obstinate rejection by the protesters of a conciliatory initiative by Noel Dempsey, the minister for communications, marine and natural resources, suggests that they are more interested in confrontation than compromise. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Forbes: Royal Dutch/Shell Hurt By ‘Credibility Issues’

Forbes: Royal Dutch/Shell Hurt By ‘Credibility Issues’

“…Royal Dutch/Shell Group announced that total capital investment for the Sakhalin II phase 2 project is now estimated at $20 billion, about double the figure given when the project was sanctioned in 2003.”: “Bear Stearns said, “The announcement raises additional concerns about the transparency and reliability of upstream projects and financial returns on future growth. In addition, we believe upside from current levels is limited by lack of oil and gas production growth, and management credibility issues.”:

Posted Sunday 17 July 2005

Bear Stearns maintained “underperform” ratings on Royal Dutch and Shell Transport & Trading. Bear Stearns’ projected price range for Royal Dutch shares is $45 to $65 and sees a range of $42 to $58 for Shell shares.

The research firm noted that Royal Dutch/Shell Group announced that total capital investment for the Sakhalin II phase 2 project is now estimated at $20 billion, about double the figure given when the project was sanctioned in 2003. Higher costs were caused by rising raw material prices, service costs, foreign exchange effects, challenges on environmental issues, as well as miscalculations during the budgeting process. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

London Evening Standard: Venezuela hits Shell with £74m bill for back tax

London Evening Standard: Venezuela hits Shell with £74m bill for back tax

“The Venezuelan authorities said Shell now faces a 15-day deadline for handing over the funds said to be owed. If it pays up within that period, interest on the sum allegedly owed will be charged at 10%. If not, the rate will rise to 250%.”

Posted Sunday 17 July 2005

Published by The London Evening Standard on Friday 15 JULY 2005

HARD on the heels of news that Royal Dutch Shell faces a massive cost overrun on its flagship Sakhalin-2 project in Russia, the company has been caught up in a tax wrangle with the Venezuelan authorities, writes Jake Lloyd-Smith.

The South American country’s tax authority has said the energy giant owes $131 million (£74.5 million) in back tax for the years from 2001 to 2004.

Shell reportedly rebuffed the claim, saying it had met all its Venezuelan tax obligations. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Financial Mail on Sunday: Shell Mix

Financial Mail on Sunday: Shell Mix

In an exclusive interview with Financial Mail, chief executive Jeroen van der Veer reveals how with the upcoming merger of the oil giant he will lay to rest the reserves scandal and put the £100 billion firm at the head of the industry: “In the open. Jeroen van der Veer has led a move to transparency”: “The scandal was seismic…”: “Nearly all Shell people understand that we have a reputation problem…”:

Posted Sunday 17 July 2005

(An article we missed when it was published by The Mail on Sunday on 26 June 2005)

THE INTERVIEW: By Luanda Kemeny

The Netherlands operation of Royal Dutch/ Shell is so obsessively secretive that insiders affectionately call it the Kremlin. But just as the heart of Russian government was forced into the open, the walls of secrecy at the Dutch ‘Kremlin’ are about to crash down.

The architect of the revolution is new chief executive Jeroen van der Veer, who has toiled for most of the past 34 years in the fiercely guarded, consensus-led management of Dutch Shell. He is about to launch the biggest shake-up in the 98-year history of the troubled oil giant. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Daily Mail: Shell pays staff £51m in row over reserves

Daily Mail: Shell pays staff £51m in row over reserves

“Staff at Shell Oil in the US who contributed to a company savings plan -similar to a pension fund -filed the class action suit with the District Court in New Jersey in July last year. They claimed former and existing Shell directors and officers breached their fiduciary duties to the employees.”

Posted Sunday 17 July 2005

City Editor Alex Brummer

FINANCE

Published by The Daily Mail on Wednesday, July 13, 2005 (Page 64)

Telephone 020 7938 6000

Web www.thisismoney.co.uk

SHELL has agreed to pay $90m (£51m) to a group of employees in America as the oil giant moves to settle one of the three major US lawsuits tiled over last year’s reserves scandal.

Staff at Shell Oil in the US who contributed to a company savings plan -similar to a pension fund -filed the class action suit with the District Court in New Jersey in July last year. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Mail on Sunday: Oil rules Footsie as Shell tie-up looms

Mail on Sunday: Oil rules Footsie as Shell tie-up looms

“Shell, which admitted last week that the cost of its giant project on the Russian island of Sakhalin had doubled to £11bn, has now run into problems with a much-delayed £650 million gas project in western Ireland, writes Tom McGhie. The largest infrastructure project in Irish history is being held up by the Mayo Five – a retired teacher, a singer and three farmers – who are refusing to allow Shell to build a pipeline across their land. They are in jail for breaching a High Court injunction preventing them from blocking Shell trucks.”

Sunday 17 July 2005

Simon Watkins,

17 July 2005

OIL is poised to become the dominant sector in the London stock market this week, challenging even the boom in technology shares in the late Nineties.

On Wednesday, Shell merges its British and Dutch arms and will list the combined group in London. This will massively boost Shell’s prominence in the FTSE 100, meaning oil and gas companies will account for more than a fifth of the value of the blue-chip index.

BP, the biggest oil group, will represent 10% of the Footsie, while Shell will account for a further 9.5%. When BG Group is added, the whole sector will make up 21% of the index. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Sunday Business Post (Ireland): Shell deal marks Ion’s arrival

Sunday Business Post (Ireland): Shell deal marks Ion’s arrival

“The deal sees Topaz take over a business with turnover of more than €1 billion. It comprises Shell’s six oil importation facilities, 35 local distribution depots, 55 retail service stations and the supply of products to 105 independently-owned service stations.”

Sunday 17 July 2005

By Gavin Daly

The purchase of the retail and commercial business of Shell by a consortium led by Ion Equity marks the arrival in the big time of the corporate finance house founded in 2000.

Neil O’Leary and Joe Devine, the founders of Ion, identified the deal, formed the Topaz consortium that included Emo Oil and took “a chunk’‘ of the equity in the firm, according to industry sources.

The terms of the deal were not disclosed, and O’Leary could not be contacted for comment. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.
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