October 26th, 2006:

By Jonathan Brown
Published: 26 October 2006

Up to 1.5 million tons of oil, 50 times the pollution unleashed in the Exxon Valdez tanker disaster, has been spilt in the ecologically precious Niger Delta over the past 50 years, it was revealed yesterday.

A panel of independent experts who travelled to the increasingly tense and lawless region said damage to the fragile mangrove forests over the past 50 years was tantamount to a catastrophic oil spill occurring every 12 months in what is one of the world’s most important ecosystems. read more

By Andrew Osborn in Moscow
Published: 26 October 2006

The Kremlin has called for managers in a Shell-led consortium developing the Sakhalin-2 oil and gas project in Russia’s far east to face criminal charges for “shamefully” damaging the environment.

The threat of managers being handed prison sentences of up to seven years came as the Natural Resources Ministry announced it was extending its environmental audit of the multi-billion pound project by one month.

Both moves pile pressure on Shell, which holds a 55 per cent stake in Sakhalin-2, to scale back its involvement in the project in favour of the Russian energy giant Gazprom. read more

The Guardian – United Kingdom; Oct 26, 2006
MARK MILNER INDUSTRIAL EDITOR

The Russian government has extended its investigation into alleged environmental violations at the $22bn (pounds 11.7bn) Sakhalin oil and gas project by another month, and says it could prosecute over the scheme in which Shell is the leading partner.

“The breaches at Sakhalin-2 fall . . . under criminal law and we think it is necessary to apply it,” Yuri Trutnev , the natural resources minister, said yesterday. read more

Oct 25, 2006
Sam Fleming

BP boss Lord Browne predicted a wave of acquisitions will dramatically reshape the oil industry in the coming years, amid growing speculation he could seek a merger with Royal Dutch Shell.

Unveiling a drop in earnings and disappointing oil output, Browne warned the golden age of sky-high energy prices is giving way to a less favourable environment that could force companies into each others” arms.

He acknowledged that “many people are talking about” BP uniting with its biggest European rival Shell. read more

Last Update: 2:33 AM ET Oct 26, 2006

LONDON, UK, Oct 26, 2006 (MARKET WIRE via COMTEX) — Live media presentation at 1100BST followed by analyst and investor presentation at 1315BST on www.cantos.com with Jeroen van der Veer, CEO and Peter Voser, CFO.
 
It’s free to view. All you need to do is register at www.cantos.com Cantos.com is an online financial website where top management of companies address the critical issues facing their businesses. If you would like to contact us, please email [email protected]. read more

By Arkady Ostrovskyin Moscow: Published: October 26 2006 03:00 | Last updated: October 26 2006 03:00

The Russian government has extended its environmental probe into Sakhalin-2, the huge oil and gas development project, by another month.

At the same time, it increased pressure on the Royal Dutch Shell-led $22bn (£11.7bn) project by threatening to bring criminal charges for damaging the country’s forests.

Yuri Trutnev, Russia’s minister for natural resources, flew to Sakhalin yesterday and said “the breaches at Sakhalin-2 fall under five articles of thecriminal code”. read more

By James Harding
BUSINESS EDITOR’S COMMENTARY
The Times October 26, 2006

UNFORTUNATELY for Lord Browne, his final two years at BP — assuming he stays that long — look set to be haunted by a classic species of story: you know that thing you never heard of, well, it’s not happening.

During the wrangle over Lord Browne’s retirement this summer, it emerged that the BP chief executive had explored the idea of one last mega-deal, namely a merger with Royal Dutch Shell. It was never clear whether it was a possibility that Lord Browne diligently explored or simply mulled for the duration of one cigar. Either way, his chairman, Peter Sutherland, was said to have quashed it.
 
BP is bedevilled by political problems, inside the company and out. But the Shell issue is a diversion. Lord Browne is being wilfully misconstrued in the light of the deal that never was. read more

Thursday October 26, 2:00 am ET 
Delivery and Growth – Leveraging a Strong Portfolio

LONDON, October 26 /PRNewswire-FirstCall/ —
– Royal Dutch Shell’s third quarter 2006 CCS earnings were $6.9 billion, compared to some $7.2 billion a year ago. CCS earnings per share increased by 1% versus a year ago. Third quarter 2005 earnings included divestment gains of some $1.7 billion related to the divestment of pipeline assets held through Gasunie NV in the Netherlands.

– Excluding the 2005 divestment gain of $1.7 billion related to Gasunie, CCS earnings per share increased by 33% versus a year ago. read more

Wed Oct 25, 2006 10:12 PM EDT
 
CALGARY. Alberta (Reuters) – Western Oil Sands Inc. (WTO.TO: Quote) said on Wednesday it has formally agreed to participate in Shell Canada Ltd.’s (SHC.TO: Quote) planned expansion of its Athabasca oil sands project at an expected cost to the company of C$2.2 billion ($1.95 billion).

Calgary-based Western Oil Sands’ main asset is its 20 percent stake in the project, which is slated for a 100,000 barrel a day expansion.

Western said the expansion is likely to cost about C$11.2 billion. In July, Shell Canada pegged the price of the project at anywhere between C$10 billion and C$12.8 billion. read more

October 26, 2006; Page A18

Our favorite headline this week has to be “Big Worries for Big Oil,” reporting that oil company profits are under pressure as oil prices decline. Exxon Mobil, Royal Dutch Shell, BP and other members of the vast energy conspiracy may have a hard time keeping their run of profit growth going now that oil prices have fallen to $60 or so a barrel from upwards of $80.

Imagine that: Oil companies are subject to market forces. They may make big profits when the price of oil rises, but those profits invariably fall back down to Earth when oil prices decline. This is also what happened in the 1990s, as oil crashed below $20 a barrel after the heights reached in the 1970s. The companies and their shareholders swallowed those declines, as they should have. read more

By GREGORY L. WHITE in Moscow and GREG WALTERS in Yuzhno-Sakhalinsk, Russia
October 26, 2006; Page A13

Russian regulators put off imposing sanctions on Royal Dutch Shell PLC’s $20 billion Sakhalin-2 project for what they say are widespread environmental violations, keeping the pressure on as the Kremlin steps up complaints about massive cost overruns at the venture.

After an inspection tour of the project on the far eastern island of Sakhalin, Russian Natural Resources Minister Yuri Trutnev cited “multiple violations” of Russian environmental laws at a meeting with Shell officials. read more