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Posts from ‘September, 2009’

Updated: Rumors Circulating Inside Royal Dutch Shell…

It is no secret that Shell is planning major job cuts.

Royal Dutch Shell CEO Pete Voser first warned of job cuts months ago but has not been forthcoming on details.

The long delay has led to numerous press articles on the subject. Just days ago the Times reported that up to 10,000 jobs are expected to go.

This has all naturally led to speculation and rumor.

Here are some currently in circulation…

Some people apparently are whispering about cullings of 20-30% in Rijswijk and head office in The Hague…

EVERYONE in EP, with just a few exceptions, will have to reapply for their jobs…

OTHER RUMORS…

Motiva inside news, Motiva norco GM Ann-Marie has quit the company and going to work for another company outside of Shell. Maintenance Manager Tony Pastor going to convent.

Investigation said to have started at Shell Deer Park Refinery & Chemical Plant into people taking kickbacks from a contractor. We have the contractors name…

Received 25 Sept from a worker at Stanlow Refinery. “I attended a meeting this week organised by the operators union and decided I would join them to be protected at work. However I go into work today and all of us are told to go to meetings to be told by our supervision we should not join a union. I thought this was a illegal practice in the uk to be so anti union. I will still join the union but I will not let my boss know as I am scared it will go against me. There are many problems at Stanlow due to lack of investment and today we are told not to use the showers or drink the water or use safety showers as there is an employee in hospital seriously ill with legionaires disease.”

WARNING: These are rumors…

Attention Royal Dutch Shell Plc: If you confirm by email that any information printed under this headline is categorically untrue, it will be removed immediately.

Shell Upstream Boss Malcolm Brinded: Mr Overpromise and Underdelivery

Slide21

COMMENTS BY “OUTSIDER”

(Please note some pdf links contain multi-page docs and may take a while to download)

The Bloomberg article of September 25th seems to echo a very familiar concept from the Watts/Enron era – promises, promises and more promises. But where is the additional production promised by Brinded repeatedly over the past few years?

A remarkably prescient presentation entitled “overpromise underdelivery” was published on this site a few years ago. We seem to be repeating the process. Shell is shedding staff precisely because it does not have enough projects to justify current staffing levels. In the medium term a lack of development projects can only lead to a decline in production.

One promise (in 2004 or 2005) involved something like a 30% increase in production accompanied by a 30% decrease in costs (unfortunately the words “increase” and “decrease” were apparently transposed).

Yesterday’s highly publicized promise of a 30% increase in production by 2012 to overtake BP should perhaps be taken in the same vein.

In the Shell CFO Simon Henry presentation on 24 Sept 2009, delivered at the Deutsche Bank Oil & Gas Conference, the figures look slightly different from those advertised (see slide 21 of 25.

Unless I am very much mistaken, I see a decline in production for 2009-2010, and a slight increase back to ~2008 levels in 2011-2012, based largely on “key projects”. I see no evidence of any 30% increase for 2011-2012 (which would involve doubling the height of the bar in the bar chart).

Shell Output Set to Pass BP With $40 Billion Spent on Projects

Sept. 25 (Bloomberg) — Royal Dutch Shell Plc, held back by almost seven years of falling production, is set to overtake BP Plc after about $40 billion of investment from Qatar to Brazil.

Click to continue reading “Shell Output Set to Pass BP With $40 Billion Spent on Projects”

A battle waiting to happen

Shell is friends again with Mr Putin, but only three years ago it was given an almighty kicking for its arrogance.

Click to continue reading “A battle waiting to happen”

Putin thaws on foreign firms as gasfield proves too big too handle

In 2006 Shell was forced to give up control of Sakhalin, a big liquefied natural gas project in Eastern Siberia, ceding half of its interest to Gazprom after a dispute over costs and alleged environmental violations.

Click to continue reading “Putin thaws on foreign firms as gasfield proves too big too handle”

Seeds of next Shell reserves scandal being sown

[caption id="" align="alignright" width="230" caption="Shell Fraudster, Sir Phillip Watts"]Shell Reserves Fraudster, Sir Phillip Watts[/caption]

From a Shell Insider

Nice hoax on the Pectina Devastatis!

But do not forget it was true then and it still is true today! And history always repeats itself, also in Shell.

Remember the heady days in the early 2000s when Reservoir Engineers were deemed to be a bunch of overly conservative intellectuals and evil Watts and his bully boys were going to sort them out and teach them what ‘real’ business meant. The process of rewarding promise and penalising realism was implemented with great vigour. We all know what happened next. Watts fired in disgrace but with a handsome pension. Huge fines by the SEC etc. One would hope we had learned from this. But not so. Of late bad man Bichsel is sending out his hit squads to all operating units to sort out those same stupid Petroleum Engineers who are not increasing the reserves quick enough.

Threatening language is used and this just before there will be mass redundancies. This will make many reservoir engineer more open to suggestions from on high. Naturally all looked upon with approval of very bad man Brinded. No written instructions, they have learned…..

And it will work to a certain extent because the formal reserves reporting is solidly in the hands of lawyers who have no clue and only insist on a piece of paper -preferably 1 A4 – stating that the reserves might be higher and signed by anybody. This signature is important to pass blame sometime in the future.

The exodus of the younger and better petroleum engineers is now in full swing and there is hardly anyone left to put the brakes on. Until the next scandal breaks.

Shell to sell Greek retail assets to Motor Oil

About 700 Shell gas stations to change hands

Click to continue reading “Shell to sell Greek retail assets to Motor Oil”

Russia Invites Foreign Cos To Join Arctic Gas Project

Gazprom operates Russia’s only LNG project, the Sakhalin-2, located on the Pacific island of Sakhalin. Shell was forced by Russian authorities to cede control of the project in 2007 – a move that scared off many investors, who saw it as a sign of the Kremlin’s attempt to renationalize its energy resources.

Click to continue reading “Russia Invites Foreign Cos To Join Arctic Gas Project”

Shell: Murder and cover-up on the high seas (updated)

Over two decades later Rapmund’s family was contacted by a fellow crewmember at the time of the tragedy who wanted to clear his conscience about his knowledge of what really happened. Basically he revealed that Leo Rapmund had been murdered and there were many eyewitnesses to the crime. The family claim that when they contacted Shell in 1995 with this alarming news, Shell and its lawyers (the most prestigious and expensive law firm in the Netherlands, De Braauw, Blackstone & Westbroek) denied any knowledge or responsibility and treated them in a disgusting and arrogant manner. All responsibility and accountability were rejected. The family was fobbed-off…

Click to continue reading “Shell: Murder and cover-up on the high seas (updated)”

Shell CEO says prepared to study Yamal LNG project

Reuters

[caption id="" align="alignright" width="330" caption="Royal Dutch Shell CEO Peter Voser"]Royal Dutch Shell CEO Peter Voser[/caption]

Thu Sep 24, 2009 7:32am EDT

SALEKHARD, Russia, Sept 24 (Reuters) – Royal Dutch Shell (RDSa.L) is prepared to undertake a feasibility study of a project to produce liquefied natural gas (LNG) in the northern Russian region of Yamal, Chief Executive Peter Voser said.

Voser made the statement on Thursday at a meeting between Russian officials and foreign energy executives.

(Reporting by Gleb Bryanski, writing by Robin Paxton)