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Posts on ‘October 13th, 2006’

Petroleum News: Russia dumps U.S. LNG market

Gazprom rejects all bids for $20B Shtokman project; gas to Europe, not U.S.

Ray Tyson
For Petroleum News
15 October 2006

Russia has rejected assistance from some of the world’s most experienced offshore players, including U.S. majors ConocoPhillips and Chevron, to help develop its giant $20 billion Shtokman gas project on the Russian side of the Arctic Barents Sea.

More troubling for U.S. energy markets are reported plans that Russia gas monopoly Gazprom now intends to use Shtokman gas exclusively to supply the North European Gas Pipeline to Europe, rather than liquefying it into LNG for export to America, as previously planned.

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Daily Mail: Shell in hot water

Friday 13 October 2006

ROYAL Dutch Shell’s safety record came under attack after a Norwegian regulator ordered it and a rival operator to stop production on two offshore rigs because of concerns about lifeboats.

Shell, which operates the Draugen facility, and Statoil, which runs Snorre, were told several ‘free fall’ lifeboats needed to be strengthened.

Shutdowns could lead to a 9pc drop in Norway’s average daily production.

The two oil giants are likely to keep the fields running at least until they meet officials on Friday.

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Itar-Tass: Sakhalin-2 environmental damages to be assessed by Oct 25

13.10.2006, 17.35
MOSCOW, October 13 (Itar-Tass) — The Federal Nature Usage Supervisory Service will finalize the assessment of Sakhalin-2 environmental damages on October 25, service deputy head Oleg Mitvol told.

“Updated information about environmental damages” resultant from the Sakhalin-2 project will be posted on that day, he said.

“The Prosecutor General’s Office has received 15 sets of documents concerning violations of environmental laws by the project operators,” Mitvol said. “It may take several months to make a final estimate the damages.”

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RIA Novosti: Environmental damage from Sakhalin II to be assessed in 2007


19:28 | 13/ 10/ 2006 

USINSK (Komi Republic) October 13 (RIA Novosti) – Russia’s environmental watchdog said Friday the entire ecological damage from the Sakhalin II oil and gas project in the country’s Far East will be evaluated in late summer 2007.

The vast hydrocarbon project, led by Anglo-Dutch oil major Shell, has met with strong opposition from environmental groups and authorities over accusations of inadequate safety, massive volumes of waste disposal, seismic threats, erosion, and threats to marine life. The Ministry of Natural Resources withdrew a key permit for the project in September.

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RIA Novosti: Russia’s financial watchdog to probe Kharyaga project next year-1

16:21 | 13/ 10/ 2006 

(Adds paragraphs 4-11)

MOSCOW, October 13 (RIA Novosti) – Russia’s financial watchdog is planning to look into the production-sharing agreement on the Kharyaga oil field in northern Russia next year, the head of the Audit Chamber said Friday.

The Kharyaga deposit, which is being developed by the French oil major Total, has been the focus of attention for Russian authorities this year, which question how well the project is being implemented.

“It [the inspection] will be carried out next year,” Sergei Stepashin said.

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Arizona Republic: Shell Oil chief pushes alt-fuels, oil exploration: *Hofmeister worried Shell could cause food shortages

Mark Shaffer
Oct. 13, 2006 12:00 AM

The president of Shell Oil Co. said that the company is no longer researching alternative fuels in edible plants because of fears that mass production could lead to food shortages in this country.

“We are already criticized for high gas prices,” John Hofmeister said. He is speaking to business leaders at stops across the country, hoping they will apply pressure on political leaders to take steps to ensure the country’s energy supply.

“Do we also want to be criticized for high food prices and causing shortages of foodstuffs?” he asked.

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IrelandOn-line: SF: Dublin manager should explain Shell deal

13/10/2006 – 14:17:51 

Sinn Féin’s environment spokesperson for Dublin South East, Daithí Doolan has called on the Dublin city manager to explain the alleged fuel deal that Dublin City Council has with Shell Oil.

Speaking today from City Hall Cllr. Doolan said: “If true, it is unacceptable that any such deal exists.

“Last year Dublin City Council passed a motion expressing their support for the Rossport Five and against Shell’s actions in Mayo.

“In light of this motion and the increasingly distressing scenes of Shells bully boy tactics in Mayo, I find it disturbing that allegations of a fuel deal between the Council and Shell have emerged.

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The Scotsman: Shell says has put right most Sakhalin violations

Sakhalin II

(A worker inspects a pipeline that is part of the Sakhalin-2 project, some 220 km (137 miles) north of Yuzhno-Sakhalinsk on Sakhalin Island, October 12, 2006. Royal Dutch Shell says it has taken less than a month to clear all ecological violations on Russia’s Pacific island of Sakhalin as the group’s $20 billion (10.7 billion pound) project awaits new state probes. REUTERS/Sergei Karpukhin)

Shell says has put right most Sakhalin violations
By Dmitry Zhdannikov

MAKAROV, Russia (Reuters) – Royal Dutch Shell says it has taken less than a month to sort out most of the ecological violations Russian authorities have identified at its Sakhalin oil and gas project, but official probes continue.

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St Petersburg Times: Exxon’s Sakhalin-1 Broke PSA

Friday 13 October 2006
MOSCOW — The Audit Chamber said Friday that the ExxonMobil-led Sakhalin-1 energy project had broken many terms of its production sharing agreement.The agency, which supervises the use of government finances, said in a statement that the group had started oil production two years later than expected and still had no clear gas export plans.

The agency has no enforcement powers but can send its conclusions for further investigation by prosecutors. It said it had sent a letter to President Vladimir Putin.

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Bloomberg: Royal Dutch Shell PLC, Exxon, Chevron, BP Among Companies Seeking Libya Oil Permits

By Maher Chmaytelli

Oct. 13 (Bloomberg) — The world’s biggest energy companies, including Exxon Mobil Corp., BP Plc and Chevron Corp., are among 47 corporations that qualified to bid in Libya’s third auction of oil drilling rights.

Libya will auction the permits on Dec. 20. They give the permit holder the right to search for oil and gas in 14 offshore and onshore sites, covering a total area of 99,437 square kilometers (38,400 square miles), almost the size of Cuba.

A list of 47 companies that qualified to make offers was published on the Web site of Libya’s state-owned National Oil Corp. They were chosen from among 70 oil companies and investors that had expressed interest, it said.

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Bloomberg: Statoil, Shell Shutting Two Oil Platforms in Norway (Update4)

By Beate Evensen and Stephen Voss

Oct. 13 (Bloomberg) — Statoil ASA and Royal Dutch Shell Plc said they were immediately halting production at two oil and gas platforms off the coast of Norway, following an order from the country’s Petroleum Safety Authority.

The authority told the companies yesterday to close the Snorre A and Draugen platforms because faulty lifeboats reduced their evacuation capacity. They kept pumping oil until again ordered to stop today, when the regulator reiterated it wouldn’t allow them an exemption. The closings affect 280,000 barrels of oil a day, or about a 10th of the country’s oil output, according to Statoil and Norway’s Petroleum Directorate.

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Corrib protestor injured in confrontation with Gardaí

 A prominent member of the group protesting against the Corrib gas pipeline has been hospitalised after a confrontation with gardaí in Co Mayo this morning.

13/10/2006 – 9:00:59 AM

A prominent member of the group protesting against the Corrib gas pipeline has been hospitalised after a confrontation with gardaí in Co Mayo this morning.

Eye-witnesses say local teacher Maura Harrington lost consciousness after being knocked to the ground by a member of the Gardaí. 

The incident happened just before 8am while local residents were gathering for their daily protest at the site of the Corrib gas terminal in Bellanaboy.

Independent TD and local doctor Jerry Cowley treated her at the scene before an ambulance arrived to take her to hospital.

read more Three arrests at Mayo gas terminal site

Thursday 12 October 2006 19:57

Gardaí arrested three people for public order offences during protests at the entrance to the Corrib gas terminal site, at Bellanaboy near Belmullet, this morning.

Members of the Shell to Sea campaign group, which is opposing the terminal, have been staging a series of protests to oppose the terminal since 7.30am.

The first sit-down protest took place at a bridge on the road leading to the site. A second demonstration was taking place at the main gates.
The cost of policing demonstrations at the Corrib gas terminal site up to yesterday was €675,000, and it could reach almost €750,000 by the weekend.

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Bloomberg: Royal Dutch Shell Protester Injured at Irish Gas Terminal Site

By Louisa Nesbitt

Oct. 13 (Bloomberg) — A protester trying to prevent workers from entering the site of a Royal Dutch Shell Plc natural-gas terminal in western Ireland was injured and taken to a hospital, according to a member of the protest group.

Maura Harrington fell and hit her head today as she tried to pass police at the site in Bellanaboy, near Rossport in County Mayo, Vincent McGrath, a fellow protester, said in a telephone interview.

“She fell back on the road and came down on the back of her head,” McGrath said. Harrington was “concussed” and taken to a hospital, he said, without giving details of her condition.

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The Wall Street Journal: Oil News Roundup: October 12, 2006 4:42 p.m.

October 12, 2006 4:42 p.m.

Oil prices rebounded, partly in reaction to a surprise decline in heating-oil stocks, but still finished below $58 a barrel on the New York Mercantile Exchange. Here is Thursday’s roundup of oil and energy news:

* * *
CHINA’S RECORD CRUDE IMPORTS: China, the world’s No. 2 oil consumer after the U.S., imported a record volume of crude in September, despite Beijing’s efforts to conserve energy and curb runaway economic growth. The fast-growing appetite for oil among developing countries, particularly China, was a major factor in the recent runup in oil prices. The latest figures show that demand isn’t abating, keeping pressure on supplies even as oil prices ease.

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