News and information on Royal Dutch Shell Plc.
The inauguration of the Sakhalin-2 project comes after years of delays and political wrangling over control of the venture in which Royal Dutch Shell was forced to sell control to Gazprom, Russia’s state-controlled gas monopoly, at the height of the Kremlin’s bid to reassert control over the energy sector in 2006.
Click to continue reading “Russia opens new energy supply front to Asia”
BP is further along than its rivals in pursuing biofuels, but other large oil companies are paying attention. Exxon Mobil Corp. Chief Executive Rex Tillerson said in a speech this week that the company’s executives have “turned our attention to next-generation biofuels” through in-house research. Royal Dutch Shell has taken small equity stakes in several fledgling biofuels companies.
All 18 people onboard a helicopter which ditched in the North Sea have survived and have been rescued from two liferafts, say coastguard.
Shell’s Chief Executive Officer Jeroen van der Veer speaks during the presentation of Shell’s fourth-quarter and 2008 results in the Hague January 29, 2009. REUTERS/Robin van Lonkhuijsen/United Photos
Wed Feb 18, 2009 2:25pm EST
By Tanya Mosolova
YUZHNO-SAKHALINSK, Russia (Reuters) – Shell (RDSa.L) will discuss further cooperation with Gazprom on energy projects in Russia’s Far East, its chief executive said, reflecting industry hopes that lower oil prices will prompt countries with resources to offer better deals.
Royal Dutch Shell CEO Jeroen van der Veer told Reuters in an interview the company would discuss more projects with Russian state-controlled Gazprom (GAZP.MM) after launching the $22 billion Sakhalin-2 liquefied natural gas project on Wednesday.
The project on the Pacific island of Sakhalin, Russia’s first LNG plant, became symbolic in recent years of the Kremlin’s drive to reassert control over its natural resources.
Shell ceded control of the project to Gazprom after the project’s budget doubled and the company came under state pressure to reduce its holding.
But van der Veer said the Russian Far East was within Shell and Gazprom’s “area of mutual interests (AMI).”
“Based on the success (of Sakhalin-2), the partners will discuss with each other how we can give hands and feet to this AMI,” the executive said.
The fall in oil prices, which are trading at less than a third of peaks near $150 a barrel last July, has resulted in a scaling back of resource nationalism in countries keen to balance protecting their resources with the need for investment.
BP Plc (BP.L) Chief Executive Tony Hayward said this month that Western oil majors could even merge with state-owned oil companies, or NOCs (national oil companies).
Gazprom Deputy Chief Executive Alexander Medvedev said the company was considering the interest of Shell and its Japanese partners in Sakhalin-2, Mitsui (8031.T) and Mitsubishi (8058.T), in potential LNG projects on Russia’s Arctic peninsula of Yamal.
“If you look at our history, we have many partnerships with NOCs, not only Gazprom,” van der Veer said.
“In the Netherlands, we have developed our gas with the Dutch state,” he said. “We have worked in Nigeria and the state is the majority owner. In our experience, work with state companies is very normal.”
REDUCED COSTS
Van der Veer also said oil majors would benefit from lower construction costs, although the effects would only be felt after the end of the year.
Analysts have said energy companies could eventually expect to make big savings on steel, which can account for more than a quarter of the budget of some projects.
“We expect that (construction) prices will go lower … but it usually takes 12 to 18 months,” van der Veer said. “If it started somewhere in October last year, then 12 to 18 months from there we expect lower prices.” Steel, like oil, has dropped sharply in price as the global financial crisis slashes demand for cars and household goods and construction projects slow down worldwide.
However, oil prices, at about $35 a barrel, are still too low and costs have not yet dropped enough for Shell to consider new investments in oil sands.
Low prices and high costs were the reasons Shell, one of the biggest players in oil sands, last year delayed an expansion of its projects in Canada, which contains the largest oil reserves outside the Middle East.
“Three weeks ago, we saw prices of oil sands which we produce now or produced last year at $38 per barrel,” he said.
“If you started today with new projects for oil sands, then $38 would not be enough,” he said. “That’s why we have postponed what we call our second expansion of oil sands: because we think that later, the construction prices will go down.”
(Writing by Robin Paxton and Tom Bergin, editing by Anthony Barker)
© Thomson Reuters 2009 All rights reserved
OTTAWA — President Barack Obama, in advance of his first foreign trip, said Tuesday that Canada’s oil sands operations leave a carbon foot print that adds to climate change concerns.
BG’s offer beats rival one from Shell’s Australian partner
Click to continue reading “Australia’s Pure Energy favours BG offer over Shell”
Woodside, 34 percent owned by Royal Dutch Shell Plc (RDSa.L), said on Wednesday net profit before one-off items was A$1.832 billion in 2008, below expectations of A$1.99 billion based on an average forecast of 10 analysts polled by Reuters.
Click to continue reading “Woodside Petroleum year profit up 55 pct”
Gazprom bought control of the $22 billion Sakhalin-2 project after a prolonged crisis that forced Royal Dutch Shell (RDSa.L), the project’s former leader, and its partners to reduce their holdings. Analysts had expected the battle would lead to delays. Shell is now a minority shareholder, along with Japan’s Mitsubishi (8058.T) and Mitsui (8031.T).
Click to continue reading “Sakhalin Energy to export about 50 LNG lots in ’09″
Yuzhno-Sakhalinsk, 18 February 2009: President Dmitry Medvedev today opened Russia’s first liquefied natural gas (LNG) plant built by Sakhalin Energy Investment Company Limited (Sakhalin Energy).
A union representing office workers said it may pull members out of the region after gunmen killed the 11-year-old daughter of a Royal Dutch Shell Plc employee and abducted her 9-year-old brother in Port Harcourt.
Click to continue reading “Nigeria’s Kidnap Capital Forces Shell, Chevron to Cut Output”
: It appears that Voser finally got fed up with Mr Overpromise/Underdelivery. Despite all the nice words about him, he is clearly kicked out. Plenty of sycophants around him are now fearing for their jobs and positioning themselves whom to kow-tow now. This bearded fellow wasted his great brain on very small details and he was unable to delegate. I think his only real good project was the SLIM project. This was many moons ago and launched him to the top jobs. And there he failed as frequently and eloquently pointed out on the Donovan site. Big brain, a micromanager on par with the pointy haired boss in Dilbert, a vicious and vindictive attitude to those that were of no use to him or that might talk back. In summary: Good riddance and now the legal system of Scotland can go after him. But I doubt they will.
: What goes around comes around.... The announcement of Brinded has long been anticipated. We now wait for the next much smaller announcement.... Tom Purves to retire..... This will make our day when that moment happens. Shell never deals with the issue of bad leadership until it is too late and the havoc has been wreaked.... However, as we say in the US, Every dog has its day..... and today that was Malcolm.
: So early retirement then after all that ....... REPLY BY JOHN D. You are still playing a point scoring game. You seem to forget that the avoidable deaths of Shell offshore workers on Brent Bravo is at the heart of this matter. The deaths occurred after a safety audit led by Bill Campbell exposed a shambolic, illegal and shameful safety regime on Brent Bravo. They occurred after Shell senior Expro management had promised Bill that Shell would bring an end to the "Touch F*** All" culture and the falsification of safety records. The explosion and record breaking fine provide proof that the promises were not kept. There is NO commercial aspect to this matter as far as Mr Campbell is concerned. He is driven solely by a fear of an even worse event due to the same policy by Shell of putting production and profits before the safety of offshore workers. Please give Bill some credit for his integrity and for his long campaign, which has rightly received cross-party support from many MP's.
: Agent provocateur indeed!! Never been called that before, and I am most certainly not in league with Shell in any way! I again reiterate my point : was Campbell fired or given early retirement from Shell and thereby lies his grudge or did he reach full retirement age in the company? An honest answer might convince many that his continuous aggressiveness against Shell is genuine or just an ongoing grudge. This is not a "slanging match" merely a point of clarification. REPLY BY JOHN DONOVAN: Mr Campbell has made it clear that he does not wish to get into discussion with someone making insulting comments while hiding behind an alias. With regards to his comment that you may be an agent provocateur, perhaps he gained that impression from checking your history of postings. Just so there is no misunderstanding, we welcome contributors who provide a counter-balance to negative postings about Shell. I have provided some links to further information about the Brent Bravo scandal. Despite all of the promises by Shell senior management about safety, which including appointing a safety Czar, its track record remains atrocious. Years after the Brent Bravo debacle, it was revealed that the lifeboats for a Shell North Sea platform were not seaworthy. You could not make it up. “Lifeboats trouble at Brent field” published on 14 March 2008, UpstreamOnline revealed “SHELL’s safety record on its Brent Bravo platform in the UK Northern North Sea is once again under scrutiny after the discovery of technical problems with two lifeboats on the installation that resulted in both of them being removed from service.” Jake Molloy, general secretary of the Offshore Industry Liaison Committee was quoted in the article by Christopher Hopson as claiming “If they had loaded up this particular lifeboat, the chances are it could have been launched into the sea in an uncontrolled fashion which would have caused death or injury as it was held in place by corrosion and not by the designed system”. The article said that problems had been found with a second lifeboat on the Brent Bravo platform. It also reported that a lifeboat had launched itself into the sea from Shell’s Tern platform because the brakes and clutches were “dysfunctional” and had damaged the launch mechanism off the platform. Shell confirmed problems had been discovered with two lifeboats on Brent Bravo during “routine maintenance”. Shell was quoted as stating that it viewed the matter seriously and had “mobilised an investigation team on the platform”. BILL CAMPBELL EMAIL SENT TO MEMBERS OF THE UK HOUSES OF PARLIAMENT ROYAL DUTCH SHELL SAFETY CONCERNS
: LondonLad: In many cases "Reaching Retirement age" in Shell simply means being unable to find a position outside Shell -nowadays the most competent people generally move on long before reaching retirement age and pursue a second career elsewhere.
: To : an observer of Shell, you state "It is commonly known that a great many employees of Shell Expro are freemasons". Where did you get this "fact" from - smoking whacky backy?? I doubt very much that a great many are indeed freemasons. Even if they are (wich I seriously doubt), so what? Let's face it they are a society that provide one of the largest contributions to charities in the UK. I think you very clearly have an axe to grind against Shell. In that context why does Campbell have such a chip on his shoulder over Shell? Was he sacked for some reason? Did he actually reach his retirement age in Shell? Would be nice to know so that we can believe more that his rants are genuine problems he has with Shell rather than caused by some hidden grudge.
: GTW, I know you are right, TP and others will get their due. What is painful is that those whose lives have been changed and whose spirits have been destroyed because of his actions, will not be compensated. Tom is not the only one taking credit for this new cruel process of forced ranking, by claiming credit for what market demand has meant for profits. There are promotions taking place right now because credit is claimed by those executing Tom's plan for performance 'refirings'. I worked in manufacturing sites where management and performance was a joke, and profits were above forecast. It's always been market demand and the hard work of the folks on the ground that make manufacturing successful, Tom is not a pioneer in taking undue credit for local successes, but he has certainly been the cruelest!
: I have no proof nor will I ever find that proof, but this reprehensible conduct of the legal authorities smells to high heaven of masonic lodges. It is commonly known that a great many employees of Shell Expro are freemasons. The police forces all over the world are well presented in the various lodges. I would not be surprised if Brinded himself is a member. Bill Campbell is a very courageous man taking on these evil forces. We in Shell all knew him to be a completely honest and competent Maintenance manager and HSE auditor. But he loses against all the parasites and sycophants whose sole job is to protect the directors. And then live well on the spoils of their abhorrent activities. Top marks for the Donovans who keep this festering sore in the spotlight. To some it maybe a lot of repeating old stories, but those that want to hide and bury their bad actions know that time is on their side. And Shell has deep pockets and knows how to procrastinate.
: John, there is no issue with my post. This is the same GTW that has been providing updates for some time on the ill fated project CEP and the ill fated Tom Purves, both of which should be going fading into the background this year as old worn out news.
: I retract my previous statement. COMMENT BY JOHN DONOVAN: WE HAVE REASON TO SUSPECT THAT THIS POSTING IS NOT IN FACT FROM THE PARTY WHO USES THE ALIAS "GOLDENTRIANGLE WATCHMAN ON THIS BLOG, BUT IS FROM AN IMPOSTER.
Shell Blog RSS Feed
