June 2nd, 2006:

Fri Jun 2, 2006 7:36 AM BST
By Tom Bergin

LONDON (Reuters) – Royal Dutch Shell is in dispute with a little-known Nigerian company over ownership of a stake in a Nigerian oil block, that recent drilling suggested could be rich in hydrocarbons.

A Shell Nigerian subsidiary placed an advertisement in The Times on Thursday saying that it was taking legal action to assert ownership of a 40 percent interest in Nigerian Offshore Block OML 122.

“Peak Petroleum Industries Nigeria Limited, the operator and retainer of 60 percent interest in OML 122 initiated court action against Shell in February 2006, seeking declarations to the effect that Shell’s interest has terminated,” the advertisement said. read more

Canada’s energy reserves: It only makes sense if the oil price is high – yet it needs lots of cheap energy

Terry Macalister
Friday June 2, 2006

A recent decision by Shell to pay $2.2bn (£1.18bn) for a Canadian oil company with only 22 employees and no reserves recognised by the US financial regulator has surprised some in the business.

Is it another wrong turn from a group that “mis-stated” 25% of its reserves in 2004 or a smart move that allows Shell to steal a march on competitors by taking a dominant position in “unconventional” oil production? read more

(BNamericas.com) – Brazil’s federal energy company Petrobras (NYSE: PBR) has concluded the acquisition of Anglo-Dutch oil company Shell’s (NYSE: RDS-B) downstream assets in Uruguay, completing a US$140mn takeover of Shell’s assets in three countries in the region, Petrobras said in a statement.

The package also includes Shell’s downstream assets in Paraguay and Colombia as announced in December 2005. The conclusion of the acquisition of Paraguayan assets, including 132 retail fuel outlets and liquefied petroleum gas (LPG) distribution units, was concluded in early April, while the acquisition of Shell’s Colombian assets was concluded at end-April when Petrobras took over 38 retail service stations. Petrobras now assumes operational control of the 89 service stations and aviation fuel outlets in Uruguay. The changeover to Petrobras operational standards will be ongoing over the next 12 months, the statement said. read more

HOUSTON (AFX) – Royal Dutch Shell will expand its presence in New York City after Motiva Enterprises LLC, a company that markets the Shell brand in the eastern US, converts about 59 BP PLC stations to the Shell brand.

These New York City sites are expected to sell 70 mln gallons of Shell gasoline annually.

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Lorna Siggins, Marine Correspondent
Jun 02, 2006
 
An Bord Pleanala has ruled that several key aspects of shore work on the Corrib gas project are unauthorised.

Shell E&P Ireland must dismantle the works, including a construction road and a beach valve facility, or apply for planning permission. The beach valve is critical to new safety recommendations relating to limiting pressure in the pipeline, issued by Minister for the Marine Noel Dempsey.

The decision overrules Mayo County Council’s ruling that the works were not subject to planning permission. It represents a “major setback” for the project, according to An Taisce and the Shell to Sea campaign. read more

By Carola Hoyos in Caracas
Published: June 1 2006 02:31 | Last updated: June 1 2006 02:31

Ministers of the Organisation of the Petroleum Exporting Countries meeting in Caracas this week have generally embraced the idea of enlarging their membership. But a bigger Opec would come at a price.
 
Venezuela, Nigeria and Iran are pushing the group to make political decisions that go against the interests of the US, Opec’s biggest customer, analysts and some Opec officials warn.

Venezuela has used the meeting to further its political causes, which include opposing US President George W. Bush and supporting energy nationalisation, particularly in Latin American. Caracas has called on Opec to accept Bolivia, which in April took control of all foreign gas assets in the country, as an observer nation even though the country does not export oil. Venezuela is also backing Ecuador as it considers rejoining Opec. read more

By Carola Hoyos and Andy Webb-Vidal in Caracas
Published: June 1 2006 17:23 | Last updated: June 1 2006 23:47

Hugo Chávez, Venezuela’s populist president, on Thursday angered Opec ministers with anti-US rhetoric as they united against him in rejecting his call to cut the oil cartel’s production.

Overcoming Venezuelan objections, the Organisation of the Petroleum Exporting Countries, at a meeting in Caracas hosted by Mr Chávez, decided to keep pumping at nearly maximum capacity. Opec produces 30m barrels a day of oil, about 40 per cent of the world’s total output. Earlier this week Venezuela called for a cut in Opec production of 500,000 to 1m b/d. read more

By Carola Hoyos in Caracas
Published: May 31 2006 16:02 | Last updated: June 1 2006 14:15

The Organisation of the Petroleum Exporting Countries, the oil cartel, is for the first time in more than 30 years considering enlarging its membership.

Oil ministers arriving in Caracas for their meeting on Thursday were awaiting the report of Nigeria, the group’s current president, on its invitations of membership to Sudan and Angola.

Angola and Sudan, both observer members of Opec, are two of the world’s fastest growing oil producers. read more

By Dino Mahtani in Lagos
Published: June 2 2006 03:00 | Last updated: June 2 2006 03:00

With elections due in Nigeria next year, politicians and analysts are already talking about whether business and oil exploration deals will be reviewed or perhaps even revoked.
 
The nervousness surrounding the business climate in Africa’s biggest oil producer, where political connections often guarantee economic success, is tightly wound around the race to succeed President Olusegun Obasanjo, who is due to step down after the elections. read more

By Dino Mahtani
Published: June 2 2006 03:00 | Last updated: June 2 2006 03:00

Royal Dutch Shell, Nigeria’s largest oil producer, has cut oil production by 50,000 barrels per day after a major pipeline leak in the turbulent oil-producing Niger Delta region.

The company said yesterday it was investigating the cause of the leak, which takes to 500,000 b/d Shell’s total lost output following a series of militant attacks on oil facilities earlier this year.

Dino Mahtani, Lagos