November 27th, 2007:

Terry Macalister

Annual revenues of $165bn are funding six new cities to create jobs – but can it last?
 
Terry Macalister
Wednesday November 28 2007

As the tiny ball of burning crimson drops behind the sand dunes it leaves a dark, almost silent landscape worthy of its name: Rub’ al-Khali, the Empty Quarter.

No sooner has the sun gone down than a long necklace of golden lights flickers on in the valley below and the improbable sound of an Islamic preacher can be heard calling the faithful to prayer. read more

November 28, 2007
Carl Mortished, World Business Editor

Hopes that Gazprom might open up the Yamal Peninsula to foreign oil companies appeared to be dashed yesterday when the Russian utility’s deputy chief executive gave a cool response to the notion of further investments by international oil companies in Russia’s gas-rich Arctic regions.

Alexander Medvedev, who heads Gazprom’s export business, spoke of “psychological barriers” to further investment by foreign oil companies and said that he had not received any interesting proposals from the Western majors. read more

November 28, 2007
Robin Pagnamenta

Staff at Shell Centre, Royal Dutch Shell’s high-rise London office, seem to have been placed on an enforced corporate fitness regime. An internal e-mail explains:

“As part of the renewal programme, lifts 4 and 5 have been taken out of service. Lifts 6 and 7 are currently out of operation. Lifts 2 and 3 are still operating for levels above the 9th floor. Lifts 4 and 5 are scheduled to be out of service until the beginning of February and we will let you know when lifts 6 and 7 will be available for use.” Er, so that leaves how many still operating, exactly? read more

27 November 2007

Scathing comments were made in May 2002 by Walter van de Vijver, the then Chief Executive of Shell EP, about the management team of Petroleum Development Oman (34% owned by Shell). 

The comments were contained in an extract from a document which formed part of his deposition filed in the current Royal Dutch Shell reserves fraud litigation.

Van de Vijver described PDO management in the following terms:

“Overall my patience has been tested too long with PDO and it’s management, progress over the last year (is it not just about delivered production!) has been less than expected, less than promised and less than could have been possible. Changes will have to be made.”  read more

Exhibit 129: January 2003 email correspondence involving Stuart Evans DPVM, Paulo Bizarro ONP32F, Niels van Dijk Shell International Petroleum – EPGO-RTL-R, Abdulla Lamki DMD, Saif Hinai OND, Jeroen Peters OSD, Abia Riyami OSP, Frode Linge ONP, Rob Willis SIEP-EPT-AGI, Bart Wassing OSP3H, Chris Mijnssen ONP3, Stuart Evans DPVM, Stuart Clayton DTEM, Said Harthy UPG2G, Kathleen Heller UPP: Subject Updated Reserves Picture and initial water flood plans:

Extract:

“Following on from the SSG, a meeting was reviewed to revisit options to make up the reserves shortfall.” read more

Tue 27 Nov 2007, 17:49 GMT
By Estelle Shirbon

ABUJA, Nov 27 (Reuters) – Nigeria’s oil industry regulator threatened on Tuesday to impose hefty fines and other penalties on firms that continue to burn off gas beyond a 2008 deadline.

Oil companies in Nigeria flare about 2.5 billion cubic feet per day of gas associated with the extraction of crude because there is no infrastructure to make use of it. Only Russia flares more gas than Nigeria.

Gas flares burning day and night are a health hazard to nearby communities and contribute to global warming, environmentalists say. The Nigerian government also wants to end flaring because it is a waste of a valuable resource. read more

By JOHN WILEN
The Associated Press
Tuesday, November 27, 2007; 12:19 PM

NEW YORK — Oil prices plunged Tuesday, picking up downward momentum amid concerns that a slowing economy might reduce demand for crude just as OPEC members are considering an increase in production.

Light, sweet crude for January delivery dropped $3.05 to $94.65 a barrel on the New York Mercantile Exchange after falling as low as $94.45 earlier. The contract is more than $4 below its all-time high of $99.29 set last week.
 
Stocks dropped sharply Monday, reigniting worries among energy traders that the economy is slowing and will use less oil and gasoline. Wall Street rebounded Tuesday, but the oil market was still clearly uneasy. read more

Workers and public transport drivers march with protest slogans closer to the Presidential Palace in Manila, Philippines on Monday, Nov. 26, 2007 to protest the escalating price of gasoline and other oil products by the three big oil companies, Caltex, Petron and Shell. The protesters formed recently an alliance of consumer groups, transport networks and “people’s organizations,” to pressure the government to suspend the Oil Deregulation Law to control “runaway oil prices” instead of public appeal for energy conservation. (AP Photo/Bullit Marquez) (Bullit Marquez – AP) read more

Tuesday, 27 November 2007 
Áine Ryan

A DELEGATION of Shell to Sea campaigners met Minister Éamon Ó Cuív in Galway yesterday (Monday) to further highlight the issues of community dissent about the controversial Corrib gas project.

Retired teacher, Mr Niall King, told The Mayo News that, while the Minister said that many of the issues discussed were outside his departmental remit, the protest group felt he had primary obligations to such issues, particularly under the ‘pobal’ or ‘community’ dimension of his office. read more

 Shell said the platform fire would be investigated

A fire which broke out on a Shell platform has been extinguished.

The fire happened on the North Cormorant platform, which is 109 miles north east of Shetland.

The “small fire” broke out at 0042 GMT on Tuesday and Shell said it was “quickly contained” by the platform fire protection system.

Shell said the Health and Safety Executive (HSE) has been informed. The incident happened less than 48 hours after a fire on another oil platform. read more

Agence France-Presse
From correspondents in Tehran
November 27, 2007 05:33pm

IRAN has built a new longer-range missile named “Ashura” with a range of 2000km, the defence minister announced today, the Fars news agency reported.

“The construction of the Ashura missile with a range of 2000km is one of the accomplishments of the ministry of defence,” Defence Minister Mostafa Mohammad Najjar was quoted as saying.

The weapon’s range is sufficient to put US bases in the Middle East and Iran’s arch enemy Israel within reach. The missile is named after the holy Ashura mourning ceremony that marks the death of Shi’ite imam Hossein read more

By Tim Hepher

BEIJING, Nov 25 (Reuters) – Oil company Total SA, battling to preserve a major gas investment in Iran amid French government pressure on businesses to trim their dealings there, is playing the energy security card by highlighting Iran’s huge gas reserves.

Total CEO Christophe de Margerie told Reuters that Iran could be a valuable source of new energy supplies as Europe frets about possible gas shortages and heavy reliance on Russia.

De Margerie said talks over the South Pars development had slowed, but denied this was the result of a French government call in September to show restraint in dealing with Iran as the West tries to rein in its nuclear program. read more

08:50 – 27 November 2007

First Minister Alex Salmond was accused of playing politics with North Sea safety last night after calling for the Scottish Government to take over regulation of the oil and gas industry.

North-east union leaders and rival politicians dismissed as “inappropriate” Mr Salmond’s call for responsibility for health and safety matters to be devolved to Edinburgh.

And UK Work and Pensions Secretary Peter Hain said the best way to keep North Sea oil workers safe was through a consistent health and safety regime that operated regardless of borders. read more

By Upstream staff

Scotland’s First Minister Alex Salmond has called for the Scottish government to take control of policing the offshore industry, it was reported today.

Salmond claimed yesterday that the UK’s Health & Safety Executive (HSE) should report directly to the Scottish government on all aspects of oil and gas installations operating in Scottish waters, a report in the Edinburgh-based Scotsman newspaper said.

He added that the move would make the North Sea a “safer place”. read more

By Isabel Gorst in Almaty
Published: November 27 2007 02:00 | Last updated: November 27 2007 02:00

A high ranking foreign delegation arrived in Astana yesterday to discuss Kazakhstan’s demands for compensation for production delays and soaring costs at the Kashagan oilfield in the Caspian Sea.

A group led by Italy’s Eni is under intense pressure to meet a November 30 deadline set by Kazakhstan for amicable settlement of the dispute which erupted after the Italian energy group presented a revised development plan for Kashagan, one of the world’s biggest oilfields. read more

By Paul Betts
Published: November 27 2007 02:00 | Last updated: November 27 2007 02:00

Kazakhstan has always been at the heart of “great game” politics. Back in the 19th century, the Russians, the British, the Germans and the French were already conspiring against each other for central Asia’s rich natural resources. After the second world war, a new player entered the game – the US. Ever since, the Americans have not been shy of moving every weapon in their arsenal to tighten their hold on the region’s energy assets. read more