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Posts from ‘December, 2007’

Reuters: UPDATE 1-Petronas, Shell, Conoco in Malaysia gas deal

Mon Dec 31, 2007 2:17am EST 
(Adds details)

KUALA LUMPUR, Dec 31 (Reuters) – Malaysian state oil and gas firm Petronas said on Monday it awarded a production sharing contract to Royal Dutch Shell (RDSa.L: Quote, Profile, Research) and ConocoPhillips (COP.N: Quote, Profile, Research) to explore natural gas in eastern Malaysia.

Under the deal, Petronas’s exploration arm, Petronas Carigali, will take a 40 percent stake in the contract to explore and produce natural gas from a cluster of offshore fields in Sabah state.

Shell Energy Asia Ltd and ConocoPhillips will each have a 30 percent stake in the cluster of four fields, called the Kebabangan Cluster and located about 130 km (81 miles) off Sabah.

Kebabangan Petroleum Operating Company Sdn Bhd will operate the fields on behalf of the consortium, Petronas said in a statement.

Petronas said gas from the fields would be piped to the Sabah oil and gas terminal now under construction. It did not give the fields’ potential gas reserves. (Reporting by Jalil Hamid, Editing by Ian Geoghegan)

© Reuters 2007 All rights reserved

Business Standard (India): Shell likely to cut 3,600 IT jobs: Report

Bloomberg / London December 31, 2007
 
Royal Dutch Shell Plc may cut as many as 3,600 staff in its information-technology division and hire other companies for the work, the Sunday Telegraph reported today without saying where it got the information. 
 
London-based Shell decided to contract out most of its IT operations, nominating Electronic Data Systems Corp, T-Systems International GmbH and AT&T Inc, the newspaper said. 
 
Shell plans a series of meetings with employees starting January 8 to outline details, according to the report. The plan to allocate the work to other companies is “substantial” and likely to create “uncertainty”, said an e-mailed letter signed by Goh Swee Chen, vice president of IT Infrastructure, the newspaper reported. 
 
The letter was posted on an employees’ web site and confirmed by Shell as authentic, the Telegraph added. 
 
Shell wants the new IT arrangements to take effect by July 1, the newspaper said. 

http://www.business-standard.com/compindustry/storypage.php?tab=r&autono=309179&subLeft=1&leftnm=1

MarketWatch: Shell to shed thousands of IT, finance jobs to cut costs: report

By Adam Smallman
Last update: 7:32 p.m. EST Dec. 30, 2007

LONDON (MarketWatch) — Royal Dutch Shell is to shed thousands of jobs to cut costs and simplify its structure, and one of the largest-ever outsourcing deals may be struck in the next couple of months, the Daily Telegraph reported late Saturday, citing information published on an anti-Shell Web site.

The biggest change will be in the information technology division, where around 3,600 staff may be affected by a plan to farm out operations to Electronic Data Systems Corp. , U.S.-based wireless telecom services firm AT&T Inc. and Deutsche Telekom AG (DT) unit T-Systems.

At a board meeting thought to have taken place shortly before Christmas, Shell decided to outsource virtually the whole of its IT function. Starting Jan. 8, Shell is planning a series of what it calls Facing Change meetings with staff to outline further details, which will include plans to reorganize other departments, including finance operations.

Dow Jones Newswires, citing a person familiar with the matter, reported on Dec. 24 that Chief Financial Officer Peter Voser told staff he wants “a leaner and meaner” finance function and has started to tighten control of business lines by his department. Shell confirmed then that it was “in discussions to outsource a substantial part of its (information technology) infrastructure to three suppliers,” without naming them.

Shell declined to discuss the number of staff involved, the Telegraph reported, though in an email written by Goh Swee Chen, vice president of Information Technology Infrastructure, the outsourcing plan presented to the board is described as “substantial” and likely to create “uncertainty”. The email was confirmed by Shell as authentic.

Negotiations are continuing, but Shell wants the new IT arrangements up and running by July 1, the newspaper reported.

Company Web site: http://www.shell.com
-Contact: 201-938-5400 

http://www.marketwatch.com/news/story/-A5D6396DEF62%7D

Financial Times: Shell looks to outsource about 3,200 IT jobs

By Rebecca Bream
Published: December 30 2007 22:05 | Last updated: December 30 2007 22:05

Royal Dutch Shell is expected to outsource the bulk of its information technology division next year, a move that could affect about 3,200 jobs.

The oil group aims to make pre-tax cost savings of about $500m-a-year (£250m) through streamlining its structure and cutting and outsourcing jobs.

As part of this cost-cutting drive, Shell has been examining whether to outsource most of its IT division, which numbers about 3,600 people.

According to Shell protest website royaldutchshellplc.com, an e-mail from Goh Swee Chen, vice-president of IT infrastructure, was leaked by a Shell employee on December 19 and outlined details of the outsourcing deal.

The e-mail said three outsourcing companies had been selected – EDS, AT&T and T-systems – with contracts expected to be signed in March.

Ms Swee Chen told staff: “I acknowledge that there will still be uncertainty as we are working through the finalisation of contracts, open resourcing and transition preparations.

“I encourage you to keep an open mind and take the time to learn more about the suppliers as employers and as business partners.’’

Shell refused to comment on the apparent leak but confirmed it was talking to companies about the outsourcing of IT functions.

Shell said: “We are in the middle of commercial discussions and expect contracts to be signed in 2008.”

It is understood that about 3,200 IT jobs are to be outsourced and about 10 per cent of these jobs are UK-based positions. They include contractors and staff on Shell’s pay-roll.

If the outsourcing deal goes ahead as planned it would be one of the largest ever. Shell employs about 108,000 people worldwide.

Jeroen Van der Veer, Shell chief executive, said this month the group had to cut costs to make up for the fact that the cost of getting oil out of the ground had risen 65 per cent in two years.

Copyright The Financial Times Limited 2007

The Guardian: Shell to outsource 3,200 IT jobs

Julia Kollewe
Monday December 31 2007

Royal Dutch Shell plans to outsource thousands of IT jobs in a drive to slash costs and simplify its structure, following in the footsteps of its arch-rival BP.

Shell’s information technology division will bear the brunt of the changes with 3,200 staff thought likely to be affected by a decision to turn operations over to three outside companies.

Shell’s chief financial officer, Peter Voser, has reportedly told staff that he wants “a leaner and meaner” finance division. The company said yesterday that it was seeking to move selected finance operations to shared (Shell-owned) service centres.

Shell has decided to outsource a “substantial” part of its IT infrastructure services, according to an email written by Goh Swee Chen, vice-president of IT infrastructure. The companies chosen from a list of six suppliers are named as EDS, T-Systems and AT&T.

According to the email, which has been posted on an anti-Shell website (royaldutchshellplc.com) and confirmed by the company as authentic, Shell intends to consult staff about the changes from January and plans to have the new arrangements in place by July 1.

An email from an unnamed IT employee posted on the website said that under the plan about 3,200 IT jobs would be outsourced and only 400 management positions retained.

http://www.guardian.co.uk/business/2007/dec/31/royaldutchshell.bp

The Independent: Shell prepares to cut 3,200 jobs

By Sean O’Grady
Published: 31 December 2007

The oil major Shell is thought to be preparing to shed around 3,200 jobs, mostly in its information technology division. As with many other public and private sector concerns, the plan is to hive the jobs off to external specialist contractors.

The company has informed staff it is planning to outsource “a substantial part” of its IT infrastructure services division, believed to comprise a total of 3,600 people. Detailed consultations with workers affected will begin soon, with a start date for the new arrangements planned for 1 July.

The move by the Anglo-Dutch producer follows hundreds of UK jobs cuts and the off-loading of thousands of other worldwide posts at rival BP, which was in the distant past, like Shell, a famously paternal company.

Details about Shell’s move were outlined in a leaked email from the company’s vice-president of IT infrastructure, Goh Swee-Chen.

In the message, dated 19 December, she stated three partners had been selected for the outsourcing deal – EDS, AT&T and T-systems – with contracts expected to be signed in March next year.

Ms Swee Chen said: “I acknowledge that there will still be uncertainty as we are working through the finalisation of contracts, open resourcing and transition preparations. I encourage you to keep an open mind and take the time to learn more about the suppliers as employers and as business partners.”

A series of “Facing Change” meetings for staff has been set up from next week to outline the proposals, she added.

The message was sent to the campaigning website royaldutchshell.com, which is occasionally used by Shell staff to air their grievances. A spokeswoman for Shell has confirmed the outsourcing plans.

Shell, which employs about 108,000 worldwide including 3,000 at its main UK office in London, has pledged to reduce costs by about £250m per year.

http://news.independent.co.uk/business/news/article3295888.ece

The Times: Need to know

31 December 2007

Natural resources

Royal Dutch Shell, the Anglo-Dutch oil giant, is believed to be preparing to shed about 3,200 jobs in the latest cost-cutting move by the industry. The company has told staff that it is planning to outsource “a substantial part” of its IT infrastructure services division, which is believed to comprise a total of 3,600 staff.

http://business.timesonline.co.uk/tol/business/industry_sectors/article3111992.ece

CRAPPY NEW YEAR FOR SHELL EMPLOYEES: MASSIVE JOB CUTS

fd.nl: Shell schrapt mogelijk duizenden ict-banen

Financieele Dagblad

Shell gaat een substantieel deel van haar ict uitbesteden om kosten te besparen. Door de maatregel komen mogelijk duizenden banen op de tocht te staan.

Een woordvoerster van Shell bevestigt dat het bedrijf momenteel onderhandelingen voert met drie outsource-partijen. In maart 2008 worden de contracten getekend.

Een werknemer van Shell verklaarde tegenover RoyalDutchShellPlc.com, een website die protesteert tegen Shell, dat 3.200 banen op het spel staan, maar de woordvoerster kon dat aantal niet bevestigen.

In een uitgelekte interne e-mail worden EDS, T-Systems, het merk voor zakelijke klanten van Deutsche Telekom, en AT&T genoemd als de drie gesprekspartners. Geen van de drie outsource-partijen was bereikbaar voor commentaar.

21 december 2007, 17:55 uur | FD.nl

http://www.fd.nl/csFdArtikelen/WEB-HFD/y2007/m12/d21/banenShell?t=Shell_schrapt_mogelijk_duizenden_ict_banen

Cash.be: Duizenden banen op de helling bij Shell

30 december 2007

(Belga) De Engels-Nederlandse oliegigant Shell is van plan duizenden werknemers te ontslaan. Het bedrijf zou een belangrijk deel van zijn informaticadiensten uitbesteden. Dat blijkt uit interne documenten die zondag zijn gelekt op internet.

In een mail van 19 december spreekt Goh Swee Chen, de verantwoordelijke voor de informaticainfrastructuur van de oliegroep, van een saneringsplan dat “belangrijk” zal zijn en dat zou kunnen leiden tot een periode van onzekerheid. Op de site royaldutchshellplc.com, die dienst doet als forum voor ontevreden Shell-werknemers, is sprake van duizenden ontslagen. Op de site zegt een anonieme werknemer van Shell dat de sanering 3.200 van de 3.600 werknemers van de IT-afdeling kan treffen. Een woordvoerder van Shell wilde zondag niet reageren op de berichten, maar bevestigde wel dat de oliegroep een reorganisatie doorvoert om de kosten te beperken. Bij Shell werken in totaal 108.000 mensen, van wie 3.000 op de zetel in Londen. (LIM)

http://www.cash.be/articles/index.jsp?siteID=78&sectionID=1&articleID=31471