Royal Dutch Shell plc .com Rotating Header Image

Posts on ‘September 20th, 2006’

Financial Times: TNK-BP gas field development faces suspension

By Arkady Ostrovsky and Carola Hoyos in London Published: September 21 2006 Russian prosecutors have threatened to suspend an exploration license for TNK-BP, the Anglo-Russian joint venture, to develop Kovykta, the massive gas field in Eastern Siberia. A source familiar with the situation said prosecutors in Irkutsk, the capital of Eastern Siberia, demanded that a […]

Financial Times: Putin makes Shell’s ‘big ears’ flap

By Paul Betts Published: September 21 2006 A few years ago, Jeroen van der Veer admitted to Stanford MBA students he had “very big ears”. This has proved a useful asset for Shell’s self-effacing boss. After all, he explained, the rule of the game in running a multinational business was quite simple – “politicians speak, […]

Financial Times: Hail to risk managers

21 September 2006 Regulatory risk comes in many sizes and measuring it is notoriously difficult. There is the variety that utilities worry about – the threat, say, that an appointed regulator will tighten the price cap a couple of revolutions more than anticipated – and then there is the scarier sort that puts travelling British […]

Financial Times: Cost of search for energy reserves soars

By Carola Hoyos in London Published: September 21 2006 The costs of finding additional reserves of oil and gas have soared, an industry study shows, adding to the malaise of international oil companies. “Reserves replacement costs surged 73 per cent as increased capital spending did not translate into incremental reserve additions,” a study of 200 […]

UpstreamOnline: EBRD delays Sakhalin 2 loan decision

By Upstream staff The European Bank of Reconstruction and Development (EBRD) said today it would not decide whether to extend a key loan to Anglo-Dutch supermajor Shell’s Sakhalin 2 project until it settles a dispute with the Russian government. Earlier this week Russia suspended the Shell-led Sakhalin Energy Consortium’s environmental permit to proceed with the […] Shell sees oil at $30-$40

Company says it will stick to its longtime price assumption, plans on expanding refinery capacity. September 20 2006: 4:41 PM EDT AUSTIN (Reuters) — Shell Oil Co. is maintaining its oil price assumption for evaluating projects at between $30 to $40 a barrel, despite the recent slide in oil prices, the company’s president told Reuters […]

The Motley Fool: Petulant President Putin

By Rich Smith (TMFDitty) September 20, 2006 “All I really need to know, I learned in kindergarten,” goes the saying. Here, at least. Over in Russia, I’m guessing it goes more like: “What I didn’t learn in dyetsky sad, I never learned.” Case in point: Russian President Vladimir Putin, who’s acting less like a “Vladimir” […]

St Diplomatic flak for Moscow’s Sakhalin move

Big News Wednesday 20th September, 2006 (UPI) Japan, Britain and the European Union are pressuring Russia not to renege on a signed agreement with foreign investors to develop a huge oil and gas field. In the 1990s the Kremlin signed a series of production-sharing agreements, known as PSAs, with various western energy companies to […]

The New York Times: Executive lays out Gazprom’s vision for Asia-Pacific region

By Andrew E. Kramer Published: September 20, 2006   MOSCOW A top executive of Gazprom, the Russian natural gas monopoly, expounded Wednesday in a speech at an economic forum on his company’s sweeping plan for controlling supplies in the Asia-Pacific region – one some analysts say would replicate in Asia a strategy that served the […]

Bloomberg: EBRD May Delay Sakhalin Loan Decision on Permit Halt (Update1)

By Stephen Voss Sept. 20 (Bloomberg) — The European Bank for Reconstruction and Development needs to know whether Royal Dutch Shell Plc’s $20 billion Sakhalin-2 project in Russia has a valid permit before it can decide whether to provide funding. The bank has already twice delayed its decision on a loan as an internal EBRD […]

Bloomberg: Dutch Foreign Ministry Asks Russia to Explain Sakhalin Decision

By Fred Pals Sept. 20 (Bloomberg) — The Dutch Foreign Ministry wants an explanation from the Russian government for the cancellation of Royal Dutch Shell Plc’s permit for the $20 billion Sakhalin-2 oil and gas project. Russia’s industrial safety inspectorate is expected to authorize by tomorrow a Natural Resources Ministry order canceling a key Sakhalin-2 […]

Bloomberg: Russia Raps Exxon, Shell for Environmental Breaches (Update4)

By Christian Schmollinger and Shigeru Sato Sept. 20 (Bloomberg) — Russia’s government denounced projects led by Exxon Mobil Corp. and Royal Dutch Shell Plc for breaching environmental rules, as President Vladimir Putin seeks tighter control of the oil and gas industry. Exxon’s Sakhalin-1 venture failed to complete safety measures at De Kastri, a Far East […]

Dow Jones Newswires: Sakhalin II Woes May Have Knock-on Effect On Loan-Sources

Wednesday September 20th, 2006 / 17h20    LONDON -(Dow Jones)- Royal Dutch Shell PLC’s (RDSB.LN) environmental and contractual issues with the Russian government on the Sakhalin II project could trigger a knock-on effect on talks to get a $500 million loan from the European Bank for Reconstruction and Development, or EBRD, people familiar with the […]

The Wall Street Journal: EU, Japan Object To Russia’s Move On Shell Permit

A WALL STREET JOURNAL NEWS ROUNDUP September 20, 2006; Page A11 Russia’s move to revoke an environmental permit for a $20 billion oil-and-gas project led by Royal Dutch Shell PLC sparked protests from Europe and Japan. Meanwhile, Russia’s OAO Gazprom said talks aimed at bringing the state-controlled gas monopoly into the giant project on the […]

The Wall Street Journal: Oil News Roundup: September 19, 2006 5:22 p.m.

THE WALL STREET JOURNAL ONLINE September 19, 2006 5:22 p.m. Crude-oil futures tumbled on the New York Mercantile Exchange, shedding more than $2 a barrel to settle at less than $62, their lowest close since late March, after an OPEC official suggested the cartel wouldn’t cut production any time soon. Here is Tuesday’s roundup of […]

The Wall Street Journal: Russia to Review Agreement License With Kharyaga

DOW JONES NEWSWIRES September 20, 2006 11:38 a.m. MOSCOW — Russia’s Ministry of Natural Resources said Wednesday that it had officially begun the process of reviewing the Kharyaga production sharing-agreement license for possible cancellation. The license may be canceled due to underdevelopment of the field, the official, Sergei Fyodorov, head of the ministry’s government policy […]

The Wall Street Journal: Shell Warns Delays by Russia Could Hit Natural-Gas Shipments

By CHIP CUMMINS September 20, 2006 12:04 p.m. LONDON – Royal Dutch Shell PLC warned Wednesday that any substantial delay caused by Russia canceling construction approval for its Sakhalin Island oil and natural-gas project would result in delays of liquefied natural-gas shipments to Japan and Korea that are scheduled to begin as early as 2008. […]


By ELIZABETH JAMES RUSSIA tightened the screw on Royal Dutch Shell and its partners yesterday.  The state-owned energy giant Gazprom revealed that crucial talks over a stake in an £11 billion gas and oil project had stalled. The move came as authorities in Europe, London and Tokyo voiced deep concerns over the Kremlin’s decision to […]

The National Post (Canada): Russia pressures Shell on us$20b oil/gas project Sakhalin-2

Dmitry Zhdannikov and Elif Kaban Reuters Wednesday, September 20, 2006 MOSCOW – Russia stepped up the pressure on Royal Dutch Shell PLC and its Japanese partners yesterday over a US$20-billion oil and gas development in the Far East, sparking protests from Tokyo, Brussels and London. In the latest blow to Sakhalin-2, one of the world’s […]

RIA Novosti: Russian envoy seeks to downplay Sakhalin II scare with Japan

16:19 | 20/ 09/ 2006 TOKYO, September 20 (RIA Novosti) – Russia’s envoy to Japan sought to defuse Thursday a potential conflict with Tokyo over the fate of the Sakhalin II energy project, saying Moscow had no intention of closing it down over claims of environmental damage. Japan’s Chief Cabinet Secretary Shinzo Abe, who is […]

The Russia Journal: No reason to stop Sakhalin II until new survey – Androsov

IRKUTSK – Sakhalin II need not be suspended while waiting for a new assessment of the feasibility study to be conducted, a deputy economics minister said Wednesday. The Ministry of Natural Resources annulled Monday its approval of a 2003 environmental study on Sakhalin II after prosecutors protested the original endorsement. Russia’s environmental watchdog, the Federal […]

UpstreamOnline: Judge blocks whale ruling

By Upstream staff A federal judge in Alaska has blocked a new government rule aimed at shielding bowhead whales from noise associated with ConocoPhillips’ seismic exploration in remote Arctic waters. US District Judge Ralph Beistline said that ConocoPhillips had raised enough questions about whether the new rule is needed or would be effective and that […]

UpstreamOnline: Dutch demand answers from Kremlin

  By Upstream staff (Call for clarity: from the Netherlands’ Foreign Minister Ben Bot) Dutch Foreign Minister Ben Bot has demanded clarification from Russia over the Ministry of Natural Resources’ revocation of environmental permits for the $20 billion Shell-led Sakhalin 2 development. “The way the Russian authorities have acted towards Shell is worrying and undermines confidence […]

MarketWatch: Threats to Russia worthless when resource riches await

Commentary: Putin playing fast and furious on the corporate scene By Sieve Goldstein. MarketWatch Last Update: 8:39 AM ET Sep 20, 2006 LONDON (MarketWatch) – If is no surprise by now that the Russian government is playing hardball to achieve its economic aims, though the speed at which Vladimir Putin will shift alliances is truly […]

Dow Jones Newswires: Gazprom Seeks North American LNG Access from Shell

By Greg Walters and Benoit Faucon            Tuesday, September 19, 2006  MOSCOW Sep 19, 2006 (AP) Russian natural gas giant OAO Gazprom (GSPBEX.RS) has pressed Royal Dutch Shell PLC (RDSB.LN) to add equity or regasification capacity at Shell’s North American liquefied natural gas holdings to a contentious asset swap involving Shell’s Russian venture Sakhalin Energy Ltd., […]

Reuters: Gazprom says the figure of 20% was a mistake (*100% perhaps?)

By Ikuko Kao TOKYO, Sept 20 (Reuters) – Royal Dutch Shell’s $20 billion oil and gas project in Russia’s far east will progress more swiftly if Gazprom joins, Russia’s ambassador to Japan said on Wednesday, underscoring Moscow’s desire for a bigger role. Shell-led (RDSa.L: Quote, Profile, Research) Sakhalin-2 is due to begin shipping large volumes […]

UpstreamOnline: Sakhalin 2 will go ahead – with Gazprom

By Upstream staff Alexander Losyukov, Russia’s ambassador to Japan, said today that Shell’s $20 billion Sakhalin 2 development, which hit new environmental hurdles this week, could start operating early – if Gazprom joined it. Seeking to quell fears over late-stage objections to the project, which is due to supply large amount of natural gas to […]

Royal Dutch Shell’s Sakhalin Nightmare

By John Donovan On Monday morning, 18 September, visitors to this website may have noticed three new items.  A photograph of President Putin of Russia on our homepage header, posing the question “Putin… Shell’s new boss?” plus two cartoon style features, both focused on Shell’s difficulties with Putin and the Sakhalin II project. A guest […]

Bloomberg: Showa Shell Buys First Cargo of Sakhalin-1 Sokol Oil (Update1)

By Shigeru Sato Sept. 20 (Bloomberg) — Showa Shell Sekiyu K.K., the Japanese refining unit of Royal Dutch Shell Plc, bought a cargo of crude oil from Exxon Mobil Corp.’s $13 billion Sakhalin-1 project in Russia for the first time. Showa Shell bought 700,000 barrels of the light, low-sulfur Sokol oil from Japan Petroleum Exploration […]

MosNews: Russia to Honor Existing PSAs — Economy Minister

Created: 20.09.2006 10:51 MSK (GMT +3) Russian Economy Minister German Gref said on Tuesday, Sept. 20, that the country may stop using production sharing agreements (PSA) for mineral deposits in the future but will honor the current contracts. Gref was talking in the wake of environmental suspension of Shell-led Sakhalin-2 oil and gas project in […]

RIA Novosti: No reason to stop Sakhalin II until new survey – Androsov

10:49 | 20/ 09/ 2006  IRKUTSK, September 20 (RIA Novosti) – Sakhalin II need not be suspended while waiting for a new assessment of the feasibility study to be conducted, a deputy economics minister said Wednesday. The Ministry of Natural Resources annulled Monday its approval of a 2003 environmental study on Sakhalin II after prosecutors […]

Bloomberg: Shell Unit Faces Criminal Charge for Destroying Russian Forest

By Torrey Clark Sept. 20 (Bloomberg) — Royal Dutch Shell Plc’s Russian venture may be charged with destruction of forests, a criminal offence, as President Vladimir Putin extends government control of the nation’s oil and gas industry. The construction of a pipeline by Shell’s Sakhalin Energy across Sakhalin Island caused at least 11 million rubles […]

The Guardian: I’m going to make you an offer you can’t refuse…

By: NILS PRATLEY The words that should ring in the ears of executives at Shell are those of George Soros. Russia, said the financier earlier this year on the topic of energy supplies, is “a country that does not hesitate to use its monopoly power in devious and arbitrary ways”. Soros was speaking in the […]

AP Worldstream: Russian minister says no plans to cancel foreign energy deals, but criticizes Shell’s cost hikes

By: ALEX NICHOLSON, Russia’s economics minister said Tuesday the government had no plans to cancel a handful of foreign-led energy projects agreed to in the 1990s, including Shell’s troubled Sakhalin-2 liquefied natural gas project. But one day after the Natural Resources Ministry said it would cancel environmental approval for the project on the Far East […]

AFX Europe (Focus): DOD awards Shell Oil $254M contract

Published: Sep 19, 2006 WASHINGTON (AFX) – The U.S. Defense Logistics Agency on Tuesday awarded a one-year contract worth about $254.2 million to Shell Oil Products U.S. for jet fuel for the Defense Energy Support Center. Shell Oil is a subsidiary of Royal Dutch Shell PLC. Shares of Royal Dutch Shell lost $1.54, or more […]

Asahi Shimbun: Japan’s ambassador immediately protested Russia’s decision to suspend Sakhalin II project

MOSCOW–Japan’s ambassador immediately protested Russia’s decision Monday to suspend the Sakhalin II gas and oil project, telling the country’s natural resources minister that the act was unjustified. Published: Sep 20, 2006 Two Japanese trading houses together own 45 percent of the development Russia’s Natural Resources Ministry revoked the approval for Sakhalin II that was granted […]

The Guardian: Investors fear economic cold war as Kremlin eyes western assets

Energy: Investors fear economic cold war as Kremlin eyes western assets: Russian state gas group halts talks on Sakhalin-2 EU and Japan warn of wider repercussions By: TERRY MACALISTER Published: Sep 20, 2006 Gazprom, the Russian gas group, turned up the heat on Shell and intensified a growing international row yesterday by stopping talks over […]

The Independent: Russian bear ready to maul Western oil majors

By: Andrew Osborn in Moscow and Michael Harrison in London Published: Sep 20, 2006 The biggest Western investment in Russia to date – the $20bn (pounds 10bn) Sakhalin-2 oil and gas development off the Siberian coast – was plunged into further turmoil yesterday after the Kremlin said talks over Gazprom taking a stake in the […]

The Independent: Dancing with the Russian bear is proving a high-risk game for our Western oil giants

By: JEREMY WARNER, The Independent – United Kingdom Published: Sep 20, 2006 Dancing with the Russian bear can be dangerous to your wealth. Nobody knows this better than Lord Browne of Madingley chief executive of BP. He’s already lost one fortune through the encounter. Once bitten, twice shy, you might have thought, but on the […]

Financial Times: The man from Amoco could replace Browne

By Carola Hoyos and Kate Burgess Published: September 20 2006 03:00 | Last updated: September 20 2006 03:00 The spotlight has fallen on the role of Lord Browne, BP’s statesman-like leader, as investors look to him for accountability on its mounting troubles. One investor concludes: “Ultimately the buck stops with John Browne: he sets the […]

Itar-Tass: State Duma to control Sakhalin-2 situation – Kosachyov

19.09.2006, 23.58    MOSCOW, September 19 (Itar-Tass) — The State Duma will control the situation around the Sakhalin-2 project, Chairman of the State Duma International Affairs Committee Konstantin Kosachyov told a Tuesday press briefing. “I do not see any reason for saying that the Federal Nature Usage Supervisory Service was politically motivated,” he said. “There […]

The New York Times: Russia Criticized for Withdrawing Sakhalin Oil Permit

By ANDREW E. KRAMER Published: September 20, 2006 MOSCOW, Sept. 19 — In a sharp face-off involving Russian energy policy, Japan, Britain and the European Union expressed worries on Tuesday about a dispute between the Russian government and a consortium led by Royal Dutch Shell that is developing one of the world’s largest oil and […]

Financial Times: Moscow denies political motive for cancelling gas permit

By Neil Buckley in Moscow Published: September 20 2006 03:00 | Last updated: September 20 2006 03:00 Russia insisted yesterday that attempts to cancel a key permit for the Royal Dutch Shell-led Sakhalin-2 natural gas project were motivated entirely by serious environmental violations and had no underlying political motive. Oleg Mitvol, deputy head of Russia’s […]

Financial Times: BP battles to clear its Augean stables

By Carola Hoyos Published: September 20 2006 03:00 | Last updated: September 20 2006 03:00 On March 23 last year, a cloud of highly flammable hydrocarbons erupted at BP’s Texas City refinery, after a catalogue of mechanical failures. Alarms remained silent, level indicators failed to judge the mounting danger and valves jammed. At 1.20pm, probably […]

Financial Times: Cynical in Sakhalin

Published: September 19 2006 22:29 | Last updated: September 19 2006 22:29 Russia’s concern for the grey whale and the Sakhalin salmon is as pleasing as it is surprising. After all, Russia’s most famous fish, the sturgeon, is threatened with extinction because of overfishing, dam-building and industrial pollution. Though environmentalists will welcome Russia’s plans to […]

Financial Times: Moscow faces global oil backlash

Sep 20 2006, By Neil Buckley and Arkady Ostrovsky in Moscow, Ed Crooks in,London, Sarah Laitner in Brussels and David Pilling in Tokyo, Financial Times Russia was facing a global backlash on Tuesday over its threat to halt work on a $20bn (£10.6bn) energy project led by Royal Dutch Shell. Japan led the chorus of […]