Royal Dutch Shell plc .com Rotating Header Image

Posts on ‘September 27th, 2006’

The Moscow Times: Oil Showdown on Sakhalin Island

Thursday, September 28, 2006. Issue 3507. Page 1. By Miriam Elder Staff Writer YUZHNO-SAKHALINSK — Foreign oil majors and state officials squared off on Sakhalin Island on Wednesday, with Shell and ExxonMobil insisting that work on the island’s prized oil and gas fields was continuing as usual despite increasing state pressure on the multibillion-dollar projects. […]

International Herald Tribune: Putin warns oil concerns

Agence France-Presse, The Associated Press Published: September 27, 2006 SOCHI, Russia President Vladimir Putin of Russia warned Wednesday that the authorities would take action against “unconscientious” oil and gas companies that failed to fulfill their license obligations.   Putin made his remarks at a meeting with Yury Trutnev, the natural resources minister, amid tensions between […]

Forbes: New Problem At Sakhalin

Chris Noon, 09.27.06, 4:20 PM ET Russia on Wednesday threw a new roadblock in the way of the foreign companies trying to develop the Sakhalin-2 energy site in the eastern part of the country, charging Royal Dutch/Shell, Mitsui and Mitsubishi with violating worker safety rules. A week ago, a suddenly ecologically minded Kremlin revoked environmental […]

Delft University of Technology: TU Delft and Shell jointly invest in sustainable mobility

27 September 2006 From 10 October eight PhD candidates will start working in the joint Shell TU Delft research programme Sustainable Mobility. The research subjects vary from sustainable hydrogen production to traffic regulations models for reducing fine particle emissions. The programme is a four-year joint project, in which Shell will invest 3 million euro and […]

Voice of America: Russia Warns of Action Against Foreign Oil Investors who Violate Rules

  Vladimir Putin (file photo) By VOA News 27 September 2006 Russian President Vladimir Putin is warning that Russian authorities will take action against foreign oil companies that fail to meet environmental regulations and other licensing agreements. Mr. Putin spoke Wednesday in Sochi, at a regional conference of energy ministers from Black Sea countries. Last […]

Itar-Tass: Sakhalin Energy Co charters two giant oil tankers

27.09.2006, 13.43    YUZHNO-SAKHALINSK, September 27 (Itar-Tass) – The Sakhalin Energy Company (operator of the Sakhalin-2 project) has chartered on Wednesday two giant tankers of the Primorye Shipping Company to ship the petroleum obtained on the Sakhalin shelf. A corresponding agreement was signed at the international “Sakhalin Oil and Gas–2006” conference, which is currently under […]

Transcript of conversation today between President Putin and his Natural Resources Minister, Yury Trutnev

STATE FLAG OF THE RUSSIAN FEDERATION 27 September 2006 EXTRACT: VLADIMIR PUTIN: This information is essential for taking decisions. I hope that the ministry and the government will take these decisions, including with regard to those who are not working honestly or not fulfilling the licence agreement conditions. YURY TRUTNEV: This is precisely why we […]

Sydney Morning Herald: Russia’s reputation on line in oil row

Thursday September 28, 2006 RUSSIA’S threat to halt a $US22 billion ($29 billion) oil and gas project may damage the nation’s reputation among overseas investors, particularly because the process lacks transparency, a Japanese official said. The action against the Sakhalin-2 venture, owned by Royal Dutch Shell and Japan’s two biggest trading houses, was “one-sided”, Japan’s […]

Dow Jones Newswires: Putin Urges Move Vs Cos Breaching Licensing Deals

27 September 2006 / 16h18      MOSCOW (AP)–President Vladimir Putin Wednesday urged Russian officials to take measures against companies that violate licensing agreements, as regulators probe several Western oil corporations over environmental concerns and allegations that they failed to adhere to the terms of their deals. “I am counting on the (Natural Resources) Ministry and […]

RIA Novosti: Sakhalin-II off agenda as Putin meets natural resources minister

17:50 | 27/ 09/ 2006  SOCHI, September 27 (RIA Novosti) — A meeting between Russia’s president and the natural resources minister made no mentioning of the massive Sakhalin-II energy project, which has been suspended over environmental concerns. Minister Yury Trutnev warned Tuesday that the Royal Dutch Shell-led Sakhalin-II would be halted if no environmental guarantees […]

RosBusinessConsulting: ecological damage from Sakhalin-2 may exceed $50bn

Estimated damages from Sakhalin-2 project announced RBC, 27.09.2006, Moscow 16:37:57. The ecological damage from the Sakhalin-2 project may exceed $50bn, Deputy Head of Rosprirodnadzor Oleg Mitvol told journalists commenting on the statement made by the Vice President of Sakhalin Energy Igor Ignatiev that if the project was suspended direct losses would total $10bn. Mitvol noted […]

UPI: Kremlin defends its environmental record

September 27, 2006 Moscow is registering irritation that its putative environmental concern over a massive foreign-owned oil project is seen as a veil for nationalization. The government’s Natural Resources Ministry recently pulled an environmental permit of the Sakhalin-2 petroleum project, which is led by Royal Dutch Shell PLC. That move followed an unsuccessful effort by […]

Daily Telegraph: Database: Energy: Wednesday 27 September 2006

Energy • Protesters kept Royal Dutch Shell from resuming work on a gas terminal in western Ireland that has already been delayed by more than a year. • Royal Dutch Shell must fix environmental and safety problems for its $22bn Sakhalin-2 oil and gas project to continue, Russian Natural Resources Minister Yuri Trutnev said. • […]

Daily Telegraph: Shell given a reprieve in Russian oil row

By Tom Stevenson (Filed: 27/09/2006) Moscow has backed off from its campaign against Shell and other foreign oil companies after criticism from overseas governments. In an announcement designed to lower the temperature in a simmering dispute over Shell’s involvement in the Sakhalin-2 oil and gas project, natural resources minister Yuri Trutnev said work could proceed […]

Gulf-Times: BP may lose $18bn field, warns Russia: “foreign-led ventures have become anomalies in Russia”

Published: Wednesday, 27 September, 2006   The foreign-led ventures have become anomalies in Russia as President Vladimir Putin increases state control over the energy industry, say market watchers MOSCOW: BP Plc’s Russian venture, TNK-BP Holding, may lose its permit to develop the $18bn Kovykta natural-gas field in Siberia because of licence and environmental violations, Russian […]

Bloomberg: Shell, Japan Criticize Russia Over Sakhalin Threats (Update1)

By Christian Schmollinger and Lucian Kim Sept. 27 (Bloomberg) — Royal Dutch Shell Plc and Japan’s ambassador criticized Russia’s threat to halt the $22 billion Sakhalin-2 oil and gas project, citing “abnormal” and “one- sided” demands. The action against Sakhalin-2 may harm investors’ perceptions of Russia, Yasuo Saito, Japan’s ambassador to Russia, told the Sakhalin […]

Lloyds List: Seeing red over Russian policy

EXTRACT: Russia wants to secure more control over its natural resources through taxation, deceit, bullyboy tactics, cunning and acquisitions. It will achieve this any which way it can and companies clearly need to be on their toes when dealing with the Kremlin. THE ARTICLE Published: Sep 27, 2006 AS the Sakhalin Oil ‘ Gas conference […]

Il Sole 24 Ore (Italy): ENI fearful for Gazprom deal (In salita l’accordo tra Eni e Gazprom)

Published: Sep 27, 2006 Italian energy company ENI is reportedly concerned for its agreement with Gazprom after seeing deals between several of its western rivals and Russian companies blocked by Moscow. The government in Russia has intervened to halt the progress of BP, Shell, Exxon-Mobil and Total in recent days, citing environmental or financial reasons, […]

AP Worldstream: Official: checks at Shell-led Sakhalin project may not lead to revoking of license

By: ALEX NICHOLSON, Published: Sep 27, 2006 Russia’s Foreign Minister said Wednesday that environmental checks being conducted at a Shell-led liquefied gas project off the far eastern island of Sakhalin will not necessarily lead to the revoking of its license. Speaking at the first day of an international oil and gas forum on the island, […]

Financial Post (Canada): Mackenzie go-ahead seems likely: Prentice ‘confident’

Published: Sep 27, 2006 CALGARY – With both sides set to resume negotiations on fiscal terms for the Mackenzie Valley Pipeline, the federal minister responsible for the project has issued a strong vote of confidence that it will go ahead. Indian Affairs and Northern Development Minister Jim Prentice said he expects formal talks between Ottawa […]

Irish Independent: Protesters use prayers to block gas line workers

Published: Sep 27, 2006 A CHORUS of prayers drowned out the words of a garda superintendent yesterday as he demanded access for about 60 workers at the site of the proposed Corrib Gas terminal in Co Mayo. Some 100 protesters loudly recited the Sorrowful Mysteries of the Rosary for up to 15 minutes until Supt […]

Irish Times: Shell vows to restart gas project despite protest (*fighting talk from Shell)

By: Lorna Siggins, Western correspondent, and Tom Shiel, Irish Times Published: Sep 27, 2006 Shell E&P Ireland has said it is its “firm intention” to return to work at the Corrib gas terminal at Bellanaboy, Co Mayo, following yesterday’s protest in which company workers were blocked from gaining access to the site. The company has […]


By Arkady Ostrovsky Published: September 27 2006 03:00 | Last updated: September 27 2006 03:00 Yuri Trutnev, Russia’s minister for natural resources, yesterday said Moscow would not take any decision on whether to stop the Shell-led Sakhalin 2 project until a month-long environmental study had been completed, Arkady Ostrovsky writes from Moscow. “Until the end […]

MarketWatch: Sakhalin Energy confident permit issues will be resolved quickly

YUZHNO-SAKHALINSK, Russia (MarketWatch) — Sakhalin Energy’s chief executive said Wednesday he was confident his company would resolve a conflict over alleged environmental violations soon. “I do believe these issues will be resolved very quickly with the ministry” said Ian Craig, referring to Russia’s Ministry of National Resources. Russian authorities had threatened to pull a key […]

MarketWatch: Gazprom inclusion may ease sakhalin-2 regulatory pressure

YUZHNO-SAKHALINSK, RUSSIA (MarketWatch) — The entry of Russian gas giant OAO Gazprom (GSPBEX.RS) into Sakhalin-II will likely result in the alleviation of regulatory pressure on the project’s operator, Sakhalin Energy Ltd., a member of Russia’s chamber of commerce, told a conference on Sakhalin Island Wednesday. “We must introduce Russian participation, of course that means Gazprom,” […]

The Guardian: Russia denies ulterior motives over Sakhalin

· Permit withdrawn ‘for ecological reasons’ · Official says no political or economic issues involved Tom Parfitt in Moscow and Terry Macalister Wednesday September 27, 2006 A senior Russian official has hit back at western accusations that Moscow is deliberately raising environmental obstacles against Shell and other foreign companies as part of a political mission […]

Reuters: Russian minister calms energy policy worries: agencies

Wed Sep 27, 2006 2:05 AM ET MOSCOW (Reuters) – Russian Foreign Minister Sergei Lavrov sought to alleviate Western concerns over Russian energy deals on Wednesday, saying talk of revising production sharing deals or pushing foreigners out of the sector was unfounded, Russian news agencies reported. A recent barrage of threats from Russian officials to […]

AFX News Limited: Russia alleges violations of safety rules at Sakhalin 2 site

09.27.2006, 12:08 AM YUZHNO-SAKHALINSK, Russia (XFN-ASIA) – Russian officials warned that safety rules have been violated at the the Sakhalin-2 oil and gas site, a week after Moscow revoked environmental authorisation for the project of Royal Dutch Shell and Japanese firms Mitsui and Co and Mitsubishi Corp. ‘There have been quite a lot of violations […]

The Guardian: Shell hailed troubled gas project as world model

Terry Macalister and Rob Evans Wednesday September 27, 2006 Shell told the British government earlier this year that the now troubled Sakhalin-2 project could become a model for future operations worldwide. The boasts were made by Shell UK’s chairman, James Smith, in a meeting with Hilary Benn, the international development secretary, and the European Bank […]

MosNews: Russia Won’t Push Foreigners Out of Energy Sector — Foreign Minister

(Russian Foreign Minister Sergei Lavrov) Created: 27.09.2006 11:54 MSK (GMT +3), Updated: 11:54 MSK On Wednesday, Sept. 27, Russian Foreign Minister Sergei Lavrov sought to alleviate international concerns of energy deal, saying talk of revising production sharing deals or pushing foreigners out of the sector was unfounded. MosNews has reported that Russian environmental watchdog and […]

International Herald Tribune: Official: checks at Shell-led Sakhalin project may not lead to revoking of license

The Associated Press Published: September 27, 2006   MOSCOW Russia’s Foreign Minister Sergey Lavrov said Wednesday that the environmental checks being conducted at a Shell-led liquefied gas project off the far eastern island of Sakhalin will not necessarily lead to the revoking of its license.   “The checks that are being carried out by no […]

The Wall Street Journal: California Oil Tax

Venture Firms Ignite Bitter Fight With Push for California Oil Tax By GEORGE ANDERS and REBECCA BUCKMAN September 27, 2006; Page A1 Still smarting from California’s recent enactment of emissions caps, the oil industry is confronting another assault in the Golden State — this one bankrolled in part by Silicon Valley tycoons pushing to fund […]

The Wall Street Journal: Oil News Roundup: September 26, 2006 4:41 p.m.

THE WALL STREET JOURNAL ONLINE September 26, 2006 4:41 p.m. Crude-oil futures continued their recent volatile trade, falling to close at nearly $61 a barrel on the New York Mercantile Exchange after rising nearly $1 on Monday. Here is Tuesday’s roundup of oil and energy news. * * * ALASKA LEASE SALE HALTED: A federal […]

Sakhalin II Cost Overrun: $20 billion, £22 billion, $25 billion or $26 billion?

Dear Mr Van der Veer Reference my email of 26 Sept: Email to Jeroen van der Veer: the Sakhalin II crisis Bloomberg have been in contact with me overnight kindly providing the precise calculation for the Sakhalin II $22 billion project cost (which they have cited again in an article published today).  In other words, […]

The Wall Street Journal: Russia Softens Tone Regarding Sakhalin Project

By GREGORY L. WHITE September 27, 2006 MOSCOW — Taking a more conciliatory tone with one of the world’s largest energy projects, Russian regulators gave Royal Dutch Shell PLC a month to come up with plans to rectify what they called major environmental violations before a possible shutdown of the $20 billion operation. “We fully […]

Bloomberg: Russia May Hurt Reputation Over Sakhalin, Japan Says (Update2)

By Christian Schmollinger and Lucian Kim Sept. 27 (Bloomberg) — Russia’s threat to halt a $22 billion oil and gas project may damage the nation’s reputation among overseas investors amid criticism the process lacks transparency, a Japanese official said. The action against the Sakhalin-2 venture owned by Royal Dutch Shell Plc and Japan’s two biggest […]

RIA Novosti: Inspections do not mean an end to Sakhalin II PSA — minister

09:53 | 27/ 09/ 2006  MOSCOW, September 27 (RIA Novosti) – Russian Foreign Minister Sergei Lavrov said Wednesday that inspections of the $20 billion Sakhalin II energy project off Russia’s Pacific coast do not necessarily mean the revocation of licenses under a production-sharing agreement (PSA). The Ministry of Natural Resources last Monday annulled the Sakhalin […]

The Times: EBRD delays verdict on Sakhalin funding

By Carl Mortished, International Business Editor   POLITICAL turmoil surrounding Shell’s Sakhalin-2 gas project has forced the European Bank for Reconstruction and Development (EBRD) to postpone a decision on providing finance for the development. Further deliberation by the EBRD will worry Shell, which is anxious for the bank’s signature of approval, notably in connection with […]