October 3rd, 2006:

The Associated Press
Published: October 3, 2006
 
DUBLIN, Ireland Police clashed with environmentalist protesters Tuesday as construction resumed on a gas pipeline project led by Royal Dutch Shell PLC.
 
Activists opposed to Shell’s pipeline project in County Mayo, western Ireland, had managed to block construction of the project for more than a year. But about 170 police deployed at dawn at the intended onshore terminus for the pipeline to push away protesters who have maintained a round-the-clock vigil at the site for weeks.
 
Officers removed about 80 protesters, two of whom reported they suffered injuries, to clear the way for several dozen construction workers to enter the site in a convoy of cars and trucks. On their first attempt last week, police struggled but failed to clear away the protesters.
 
A left-wing Mayo member of Ireland’s parliament, Jerry Cowley, who is also a medical doctor, treated one woman’s injuries. He accused police of heavy-handed tactics.
 
“She was lifted up by her chin and pushed back. She had a lot of abrasions on her neck. … She could hardly breathe,” said Cowley, who joined the protest.
 
The pipeline would deliver raw natural gas from the Corrib field, which was discovered in 1996 about 80 kilometers (50 miles) off the Mayo coast and has estimated reserves valued at €850 million (US$1.1 billion).
 
Shell and its junior development partners — Norway’s Statoil ASA with a 36.5 percent stake and U.S.-based Marathon Oil Corp.’s 18.5 percent — had hoped to launch production in 2007, but oil analysts say it probably won’t happen until the end of 2008.
 
Corrib gas could transform the Irish market, which depends on British imports to meet about 85 percent of its natural gas needs. Shell estimates Corrib gas could provide about 60 percent of Ireland’s needs for the next 15 to 20 years.
 
For two years, campaigners have demanded that Shell reroute the pipeline away from a rural hamlet called Rossport and build the processing facility offshore. Their effort captured national attention and much public sympathy last year, when five Rossport men spent 94 days in jail for refusing to observe a court order barring them from the construction site.
 
In August, Shell accepted a mediator’s recommendation to shift the route of the 9-kilometer (5.5-mile) onshore portion of the pipeline away from Rossport. The anti-Shell campaigners insist the entire operation should be kept off shore, an option that Shell and government engineers say would be impractical.
 
Police shut down public roads leading to the construction site Tuesday in hopes of preventing more protesters from rallying there. A police spokesman, Inspector Ray McHugh, said officers would guard the site “as long as we have to. We are not putting a time frame on it.”
 
On the Net:
 
Rossport 5 protest site, http://www.corribsos.com
 
Shell, http://www.shell.com
  read more

Brian and Andrew | 03.10.2006 01:19

The following article is a position paper on the Irish Government’s attempt to placate growing opposition by the appointment of a so-called “independent mediator” to defuse the crisis over the outright handover of Irish energy resources to multinational corporations. It also includes an update on the present crisis at Corrib.

On 28th July 2006, Mr. Peter Cassels, the “independent mediator” appointed by Minister for the Marine and Natural Resources Noel Dempsey with the stated aim of negotiating a settlement between Royal Dutch Shell and the Rossport Five, published a report. The principal recommendation was that the contested pipeline should be moved to address the safety concerns of local residents. Other recommendations were that Bord Gáis, the Irish state gas agency, should become involved in the project, and that an “investment fund” be set up to increase the economic benefit of the project for the Erris area. read more

Published: October 3, 2006
 
MOSCOW The head of British oil giant BP PLC’s Russian joint venture expressed hope Tuesday that a compromise could be reached with authorities over a license to develop the giant Kovykta natural gas field in East Siberia.
 
Last week prosecutors said the company — TNK-BP — had not met production goals at the Kovykta field and had violated environmental regulations.
 
The announcement follows the decision by the Russian natural resources ministry to pull an environmental permit at a giant oil and gas project led by Royal Dutch Shell PLC in the Russian Far East — a move that spooked western investors and could see work halted.
 
TNK-BP chief executive Robert Dudley said he doesn’t expect to lose the license.
 
“I think we’ll find a compromise,” Dudley said. The only environmental issues to be resolved are “sewage problems.”
 
According to the 14 year-old license TNK-BP committed to supply 9 billion cubic meters of gas to residents in the Irkutsk region in 2006 through its RUSIA-Petroleum subsidiary, which is developing the Kovykta site.
 
However, Dudley said that if the company were to produce that amount most of the gas would have to be flared because there isn’t the demand in the region. True demand is for about 3 billion cubic meters of gas this year.
 
Potential gas production at the Kovykta field, which holds reserves of 1.9 trillion cubic meters, could reach 40 billion cubic meters a year. TNK-BP plans to supply the domestic market and countries such as China and South Korea.
 
Analysts say authorities are turning up the pressure at both Kovykta and Shell PLC’s Sakhalin-2 to secure a better deal for state gas monopoly Gazprom in the projects.  read more

By Joseph Ferguson
Tuesday, October 3, 2006

On September 18 a Russian high court ordered the temporary suspension of operations at the Sakhalin-2 oil and gas development project due to environmental considerations (Asahi Shimbun, September 18). The order followed a complaint filed by the Russian Ministry of Natural Resources, which claims that the project is violating environmental regulations. The Russian government seems to have since relented and told Sakhalin Energy Investment, the consortium that runs the project, that they have one month to correct the problems, but the threat of suspension remains (Vremya novostei, September 27). The Sakhalin-2 energy consortium is 55% controlled by Royal Dutch-Shell. The Japanese trading firms Mitsui and Mitsubishi control 25% and 20%, respectively. Thus far the project is experiencing massive cost overruns, thus depriving the Russian government of profits at a time of soaring energy prices. At the same time, the state-controlled Russian energy giant Gazprom is hoping to become involved with this and other projects on Sakhalin. read more

TUESDAY 3 October 2006 

Irish premier Bertie Ahern faces the biggest test of his 30-year political career when he explains to the Dail parliament about controversial 1990s cash payments.
By:Press Association  

Leaked financial records triggered an unprecedented leadership crisis for Mr Ahern which has gripped the nation and hit the headlines across the world.

Pressure is building on the premier to admit that taking the €11,800 for a function in Manchester in 1994 while Finance Minister was wrong and regrettable. read more

03/10/2006 – 10:47:13 

Sinn Féin Spokesperson on Natural Resources Martin Ferris has accused the Government of appearing “anxious to enforce the wishes of Shell” in relation to the Corrib gas development.

Deputy Ferris also condemned the decision by the Department of Justice to order gardaí to break up a picket at the proposed site of the oil refinery at Bellanaboy.

Deputy Ferris said: “It is ironic that on the day that the Dáil will question the Taoiseach on his personal finances, that a Fianna Fáil Government is seen to be clearly enforcing the wishes of a multi-national consortium against the will of the local people and against the best interests of the Irish people as a whole. read more

By Dara Doyle

Oct. 3 (Bloomberg) — Royal Dutch Shell Plc resumed work on a terminal in western Ireland after police cleared protestors blocking the site of a facility intended to process natural gas from the $1.1 billion offshore Corrib gas field.

About 170 police officers removed 60 campaigners from Bellanaboy, near Rossport in County Mayo, enabling 70 workers to begin work. The police also towed away cars and closed off approach roads to prevent the protest from growing.

“Workers have a right to work,” Susan Shannon, a spokeswoman for Shell, Europe’s second-largest oil company, said by phone from Dublin. “We believe it’s only a small group of people within the local community who oppose this development.” read more

Tue Oct 3, 2006 10:34 AM BST
By Austin Ekeinde

PORT HARCOURT, Nigeria (Reuters) – About 20 Nigerians working for a contractor to Royal Dutch Shell were abducted during a Monday attack on a convoy of boats supplying oilfields, Shell sources said on Tuesday.

At least five soldiers protecting the convoy were killed when about 70 gunmen in speed boats attacked the barges carrying fuel and other supplies to Shell facilities in the remote Cawthorne Channel in the Rivers state of the Niger Delta.

“There is still confusion over what has happened. About 20 Nigerian oil workers who work for a Shell contractor were abducted. As of now they are still missing,” said one Shell source in the Rivers state capital, Port Harcourt. read more

By  Gregory L. White   

MOSCOW Oct 2, 2006 (Dow Jones Newswires from the Wall Street Journal)

Russia’s state-controlled energy giants are gearing up for a new round of acquisitions that could give the Kremlin ownership of nearly half the country’s oil production, the highest level since privatization of the Soviet industry began more than a decade ago.

Industry executives and others close to the situation say state oil company OAO Rosneft is seeking at least several billion dollars of financing to buy many of the remaining assets of OAO Yukos at state-mandated bankruptcy auctions in coming months. OAO Gazprom, the majority state-owned natural-gas giant, this week said it would be interested in buying out the Russian partners who now hold half of TNK-BP Ltd., a joint venture with BP PLC that is the third-largest oil producer in Russia. read more

By  Greg Walters
MOSCOW Oct 2, 2006

The chief engineer for Anglo-Russian oil producer TNK-BP Holding’s (TNBP.RS) unit Rusia Petroleum, Enver Ziganshin, was found shot dead in Siberia Saturday, a spokesman for the local police said, Russian news agency RIA Novosti reported Monday.

Ziganshin’s wife found him in a sauna around midnight Saturday. He had been shot three times, including once in the head.

TNK-BP confirmed Ziganshin had been killed, but said it had no further comment for the time being.  “We have been informed that this tragedy has occurred,” said spokeswoman Marina Dracheva. “We don’t know any particulars.” read more

*** Gardai and Shell using force to proceed with refinery ***
– Gardai/Shell PR offensive under way.

– Solidarity / support needed asap.

=======================================================
Shell to Sea Press Release: October. 3, 2006

Overnight a large force of Gardai numbering in the hundreds and acting in support of Shell have sealed of the Bellanaboy site. The movement of local people has been restricted. One local woman has been removed to hospital by ambulance after been injured. At present over two hundred local people are gathered at the site with others prevented by Gardai from getting near the site. The Irish government are now actively engaged since early morning on the side of Shell against the local people who will not risk the safety of their families for a project that has little if any financial benefit for the Irish people. This is serious escalation of the dispute. read more

By GREG WALTERS
October 3, 2006; Page A6

MOSCOW — A top technician at an affiliate of BP PLC’s Russian joint venture was found shot dead in Siberia during the weekend, the second high-profile murder in less than a month to shake Russia’s business community.

The death comes two weeks after the killing of Russia’s top banking regulator, Andrei Kozlov. That murder sent shock waves through Russia’s business and political elite.

Russian news agency RIA-Novosti reported Enver Ziganshin, the chief engineer for oil company Rusia Petroleum, was found by his wife in a sauna at his dacha, or country home, at about midnight Saturday. He had been shot three times, including once in the head, the agency reported, citing local police. read more

EXTRACT: A fresh episode of militant attacks in Nigeria, which killed five soldiers, has also reminded dealers of potential supply cuts in Africa’s top oil producing country. Royal Dutch Shell (RDSa.L) already has 495,000 barrels of oil equivalents per day shut down at fields it operates in Nigeria, mostly because of militant attacks.

THE ARTICLE
 
By REUTERS
Published: October 3, 2006
Filed at 2:21 a.m. ET

SINGAPORE (Reuters) – Oil fell below $61 a barrel on Tuesday, extending a 3 percent drop in the previous session, as forecasts for a further build in fuel stocks in the United States offset slight cuts in OPEC output. read more

WASHINGTON -(Dow Jones)- The head of Royal Dutch Shell PLC (RDSA) US operations John Hofmeister confirmed Monday his company was near to inking a deal with the federal government to re-negotiate 1998-1999 oil lease contracts, but said it was unclear how much Shell would pay in royalties.

Johnnie Burton, the head of the U.S. Minerals and Mining Service, or MMS, said last month her company was close to signing contracts with Shell and BP PLC (BP) to re-negotiate 1998-1999 offshore oil and gas leases, in which the MMS “mistakenly” omitted a clause requiring royalties to be paid to the U.S. government. read more

October 03, 2006
 
Shell has appointed Foster & Partners, the leading architect, to consider an ambitious redevelopment of its headquarters, the Shell Centre, on London’s South Bank next to the London Eye.

The oil giant, which is keen to make the best use of any surplus space on the 5.5-acre site, does not want to demolish the building but it is thought that one option could be the construction of an iconic high-rise tower. Any design, however, would need to be acceptable to London’s Mayor, Ken Livingstone, and local planners. read more

The Associated Press: Published: October 2, 2006
 
PORT HARCOURT, Nigeria Dozens of militants sank two military patrol boats in Nigeria’s oil-rich southern delta in an attack that killed five soldiers and left nine others missing, an army spokesman said.
 
Maj. Sagir Musa said 15 soldiers were on a routine boat patrol in a delta outlet in Nigeria’s Rivers state when 70 militants attacked on Monday, sinking two military boats. One of the soldiers managed to escape and raise the alarm, he said.
 
A convoy of workers for Royal Dutch Shell PLC was attacked while being accompanied by a military escort in the same area, said Bisi Ojediran, a company spokesman in Lagos. It was not immediately clear if the Shell convoy was attacked in the same incident.
 
Ojediran said he could not confirm any casualties, or if anyone was taken captive. Oil company convoys usually travel with a military escort in the dangerous delta region.
 
A group that says it represents a coalition of militant groups claimed responsibility for attacking the Nigerian soldiers. An e-mail from the Joint Revolutionary Council said the attack was in revenge for attacks on local communities and demanded the release of imprisoned militant leader Mujahid Dokubo-Asari.
 
However, an e-mail from the Movement for the Emancipation of the Niger Delta, one of the groups the coalition claims to represent, said it was not involved in Monday’s violence.
 
Militant attacks and kidnappings have cut oil production in Africa’s largest crude producer by over a quarter so far this year. Groups have sabotaged pipelines and oil installations in what they say are protests against the international oil companies and the federal government, which controls the petroleum revenue and divvies it up among Nigeria’s 36 states.
 
Despite the Niger delta’s massive energy resources, the vast majority of the region’s people are mired in extreme poverty and many say kidnappings and attacks that grab international attention are some of the only tools available to them.
 
Nigeria is the fifth-largest supplier of crude oil to the United States.
 
PORT HARCOURT, Nigeria Dozens of militants sank two military patrol boats in Nigeria’s oil-rich southern delta in an attack that killed five soldiers and left nine others missing, an army spokesman said.
 
Maj. Sagir Musa said 15 soldiers were on a routine boat patrol in a delta outlet in Nigeria’s Rivers state when 70 militants attacked on Monday, sinking two military boats. One of the soldiers managed to escape and raise the alarm, he said.
 
A convoy of workers for Royal Dutch Shell PLC was attacked while being accompanied by a military escort in the same area, said Bisi Ojediran, a company spokesman in Lagos. It was not immediately clear if the Shell convoy was attacked in the same incident.
 
Ojediran said he could not confirm any casualties, or if anyone was taken captive. Oil company convoys usually travel with a military escort in the dangerous delta region.
 
A group that says it represents a coalition of militant groups claimed responsibility for attacking the Nigerian soldiers. An e-mail from the Joint Revolutionary Council said the attack was in revenge for attacks on local communities and demanded the release of imprisoned militant leader Mujahid Dokubo-Asari.
 
However, an e-mail from the Movement for the Emancipation of the Niger Delta, one of the groups the coalition claims to represent, said it was not involved in Monday’s violence.
 
Militant attacks and kidnappings have cut oil production in Africa’s largest crude producer by over a quarter so far this year. Groups have sabotaged pipelines and oil installations in what they say are protests against the international oil companies and the federal government, which controls the petroleum revenue and divvies it up among Nigeria’s 36 states.
 
Despite the Niger delta’s massive energy resources, the vast majority of the region’s people are mired in extreme poverty and many say kidnappings and attacks that grab international attention are some of the only tools available to them.
 
Nigeria is the fifth-largest supplier of crude oil to the United States. read more