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Posts from ‘November, 2009’

al-Yamamah corruption scandal: a taboo subject for Shell

The above YouTube video tells the horrific story of Ray Fox, the man who claims he and his family were contaminated by illegal unauthorized toxic outflow from a Shell terminal in Earley, near Reading, England.  At one stage, Ray was treated by a specialist in Germany for radioactive poisoning.

Almost a year ago we published an extensive article on the subject. Ray also believes that contamination from Shell’s terminal killed the parents of his adopted son Christopher, who himself was diagnosed with leukemia.

All lived in close proximity to the Shell terminal which, after multiple attempts at decontamination, Shell sold to a housing developer, Persimmon Homes.

A housing estate now stands on the land once occupied by the Shell terminal, which evidence suggests, has a far more sinister past than anyone could have imagined. Ray Fox lived with his family in a residence -- 337 Wokingham Road -- immediately adjacent to the terminal.  It has been subsequently described on a Channel 4 TV programme as “the most polluted house in Britain.”

There are two possibilities. Firstly there is a body of evidence and expert opinion that a nuclear reactor is buried in a secret bunker at the site. Alternatively, there is evidence the site was used as a staging post for the supply of embargo-busting weapons and munitions, including “tactical nuclear weapons like shells and missiles” to Iraq and Iran. Both possibilities may be correct given Shell’s key involvement in clandestine projects including the so called scandal of the century: The Al-Yamamah BAe oil-for-military-aircraft affair. Extensive information is provided in our article:

Shell, Saudi Arabia, Arms-for-Oil, Corruption, & Radioactive Contamination

The article includes extensive correspondence with Richard Wiseman, the rule-bending Chief Ethics and Non Compliance Officer of Royal Dutch Shell Plc. In one letter to Ray, Wiseman described the white worms and dying trees and plants in Ray’s garden, as being “your horticultural problems“. In another, he advanced his novel theory that the cause of radioactive contamination could perhaps be due to the disposal of a smoke detector.

I will leave it to our readers to reach their own conclusions about the way Mr Wiseman treated Ray Fox and his family when Mr Fox was very ill. He is still unwell.

Mr Wiseman has categorically stated that there is no buried nuclear reactor under the housing development. I am sure he believes this to be the truth. However, if a nuclear reactor is buried under the site, we can be sure it was done so in conjunction with the UK government under the then Official Secrets Act. So Mr Wiseman might not know the truth.

Mr Wiseman has not been prepared to say one word about Shell’s key role in the al-Yamamah scandal which may have some bearing on this matter. It is clearly an absolutely taboo subject for Shell.

In July 2009, Ray Fox obtained a report from Prof Dr Chris Busby BSc, PhD, C.Chem, MRSC -- in short, one of the worlds leading radiation risk experts. Prof Busby is Scientific Secretary of the European Committee on Radiation Risk. His report contains his conclusions of radiation and radioactivity measurements made by RWE Nukem at 337 Wokingham Road, the property in question. He also refers to his own investigations carried out on site.

Some extracts:

I took samples from the area and the results of analyses of these samples showed anomalous levels of various radioisotopes which would have been consistent with the accusations made by Mr Fox that the Shell site had been the location of a nuclear reactor. This was also supported by my analysis of earlier measurements of samples which showed (a) uranium isotope ratios that were from highly enriched uranium from a bomb, a reactor or some experiment and (b) anomalously high levels of plutonium, also indicative of the presence of material from a bomb, a reactor, or an experiment.

Nevertheless, the results are very interesting and despite the conclusions drawn by Nukem do in  fact indicate extraordinarily high levels of uranium in the house dust.

The house dust appears to be seriously contaminated with uranium; indeed it seems to be 20% pure uranium-238

The Nukem report broadly agreed with earlier surveys with regard to external gamma dose rates which were not above normal background. No adequate attempt was made to further investigate the levels of uranium and its isotope ratios, nor the levels of plutonium in the house and grounds. Re-analysis of the smear sample results by me indicated the presence in the house dust of enormously high quantities of uranium.

New legal proceedings are now underway on behalf of Ray Fox. It seems likely that Mr Wiseman’s callous response to very serious issues may come back to haunt him.

FURTHER VIDEO CLIPS

MUCH MORE INFORMATION HERE

BAE boss shocks audience with dismissive comment on Nimrod deaths (Shell’s al-Yamamah partner)

BAE has long been criticised by churches, faith groups, charities and NGOs for arming oppressive regimes such as Saudi Arabia and Indonesia. The company is facing allegations of corruption in five continents and is thought to be on the brink of prosecution in British courts.

Click to continue reading “BAE boss shocks audience with dismissive comment on Nimrod deaths (Shell’s al-Yamamah partner)”

Secrets of MoD deal are revealed (Shell a key player in al-Yamamah scandal)

The Sunday Telegraph

November 15, 2009

Ministry cannot account for where £1bn went in Saudi oil-for-jets affair

DAVID HENCKE

DETAILS OF a damning secret report into Britain’s biggest ever arms deal, which raises questions over how the Ministry of Defence spent more than £lbillion, can be disclosed for the first time by The Sunday Telegraph.

A National Audit Office (NAO) investigation into the controversial £20 billion al-Yamamah arms deal between Britain and Saudi Arabia found that:

  • The MoD could not properly account for nearly £1billion of cash it paid to British Aerospace (now Bae Systems) at the time of the deal;
  • Bae also “failed to account” for the £1billion;
  • A£30.3 million management fee was paid to Bae even though there was no “legal or contractual obligation” to do so – a payment described by auditors as “irregular”.

Documents also outline how auditors demanded that the Govemment investigate Bae accounts to find out what had happened to the money, and reveal the fears that led to the report being kept secret for 17 years.

The deal, agreed in 1985, saw British Aerospace-built warplanes exported to Saudi Arabia in exchange for oil, which was sold on the open market by the British Government. The deal has long been at the centre of corruption allegations.

The disclosures are certain to raise new questions as to whether millions of pounds were paid in secret commissions to middlemen.

The revelations could not come at a worse time for Bae Systems, which is facing a Serious Fraud Office investigation over other arms deals.

The al-Yamamah deal involved a series of complex transactions. Saudi oil was given to the Government, which then sold it on the open market. The money raised was then used to buy Tornado fighter and ground attack air-craft and Hawk trainer jets
from Bae, which were then exported to Saudi Arabia.

While the NAO report is still secret, correspondence between the MoD and the NAO has been seen by The Sunday Telegraph.

An internal NAO memo, written by auditor J Parsons on July 12, 1991,reveals that “payments of £30.3 million (redacted) have been netted off in a suspense account.  This is contrary to the fundamental principle of gross accounting and as such is irregular.”

It added that “the department have not accounted in their suspense payments for nearly $ 1.5billion [£1billion] of receipts and payments.

“By any definition, failure to account for $1.5billion indicates a certain weakness in control.” In a draft letter, Sir John Bourn, the former auditor general, urges Michael Quinlan, the then permanent secretary at the MOD, to push Bae to account for the money it had been paid.

He demands that the ministry’s auditors go to the company and insist on seeing its accounts.

The letter to Mr Quinlan goes on: “A thorough investigation into the profitability of the sale would reveal whether substantial commissions have been paid. There are, of course, guidelines to cover such circumstances. We would need to see evidence that these have been followed.”

At the time, the NAO had no power to examine the accounts of a private company.

The documents reveal why the report was kept secret.

Under normal circumstances, the ministry’s accounts would have had to be published and qualified by Sir John, leading to a hearing by MPs on the Commons public accounts committee, then chaired by Sir Robert (now Lord) Sheldon.

Such a scenario provoked panic in Whitehall, since the Government had agreed with the Saudis to keep all the details of the deal secret and it could have led to the cancellation of the order for the jets.

By any definition, failure to account for $1.5billion indicates a  certain weakness

One letter from an auditor warns that it could “blow up”. Another says that the whole business was “a murky area”.

Whitehall invoked national security reasons to prevent public reporting of the accounts. Instead, a secret hearing attended by Lord Sheldon, his deputy Michael Shaw, Mr Quinlan and Sir John was held. In that way, the obligation to inform Parliament had been fulfilled, even though the report itself had not been made public.

The hearing must have raised concerns because it led to Sir John’s demand for an audit of Bae’s al-Yamamah accounts, though it is not clear whether this ever happened.

Information on the deal is to be published under Freedom of Information rules this week.

However, many documents are still being kept secret and the NAO has told the Information Commissioner that an entire file on the contract, dating between 1995 and 2002, has been destroyed.

ARTICLE ENDS (Link will be added when available)

RELATED ARTICLE

BAE Systems whistleblower accuses Shell & BP of money laundering Al-Yamamah proceeds

SHELL INVOLVEMENT IN SAUDI ARABIA / AL YAMAMAH BAE ARMS SCANDAL

Royal Dutch Shell seeking 220,000 sq ft offices in London

November 14th, 2009

After a long downward spiral lasting the better part of a year, the London real estate market seems to be finally looking at a turnaround. A host of companies including Google and Royal Dutch Shell are reported to be scouting around for space in the City for their offices. This comes as welcome news for the London real estate market reeling under dropping rentals and rising vacancy levels.

According to real estate consultants Cushman & Wakefield, Royal Dutch Shell, the oil company, is looking at around 220,000 sq ft of office space while Google needs around 145,000 sq ft.

Full Article

IT OFFSHORING: AFTER THE GOLDRUSH

By IT4me

You might expect Shell IT people to bitterly resent their offshored rivals. The reality is more subtle. Many of those expecting to be replaced actually weren’t. They were quietly absorbed by the business, or re-engaged further up the food chain as “architects”, a new IT role which seemingly emerged just in time. Also, RDS was once 40% British and many Brits have an odd attitude to India – a lingering sense of guilt from the days of empire nicely caught by comic Alexei Sayle when he apologised for the massacre at Amritsar while ordering a takeaway curry. Offshoring may be India’s just reward.

When the goldrush started, there was immediate concern for Shell’s Business Systems. These depend a great deal on KNOWLEDGE held in people’s heads, a quirky Shell-specific mix of business/technical understanding gained over years. The CIO’s empire had never run Business Systems before, so did they even understand this ? Their answer was “KNOWLEDGE TRANSFER”. To this day, nobody knows how it works, yet all the “KT” boxes were ticked after just a handful of international phone calls. I suspected use of the “Vulcan Mind Meld”, but according to the Star Trek website, this requires face-to-face contact, which almost never happened.

These box-ticks anyway count for little, given the phenomenal offshore “churn” rates. Half of any Wipro/IBM team you put together today will be gone within 2-3 months. Insiders are now fearing the demise of “FASTER”, the cheap and effective publisher of Downstream Financials since around 1998. The knowledge needed to implement the annual structure changes in 2010-Q1 has apparently been lost.

Back among the marble palaces of Bangalore’s business district, trade continues despite the recession. A hotel-night here can cost USD 400, more than almost anywhere on the planet. Indian Offshoring is no longer cheap, and now depends on sub-contracting to China and elsewhere to keep prices down. In 2007, Wipro made the headlines and brought us full circle by announcing a new development centre in a low-cost location nobody had ever thought of, one where the inhabitants even speak pretty good English: Atlanta, Georgia !

Can we blame the CIO for not thinking beyond the goldrush ? Perhaps not, given so many other execs had the same idea. But the destruction of all that knowledge is another matter…

Time Article: India Inc.: Bombay’s Boom

Comment by “shellwaarbenjijnu”
on Nov 15th, 2009 at 11:02 am

IT4me – interesting post but in response to your point regarding “destruction of all that knowledge” my question is – so what’s different with the rest of the business? Shell is about to dispose of several thousands of staff with heads full of knowledge and in any case appears to have developed a view that development / preservation / dissemination of petroleum knowledge is of secondary importance in the great scheme of things. I have heard it said by disappointed recently retired Shell staff that the company has no interest whatsoever in enabling transfer of their knowledge to less experienced staff despite all the blah blah about the “big crew change”, loss of knowledge, etc. The reason given that of cost & contractor management. In terms of knowledge destruction then does that indicate a company which knows the cost of everything and the value of nothing?

IT4me
on Nov 15th, 2009 at 2:52 pm

Shellwaarbenjijnu – No argument from me! Obviously knowledge loss in EP is a much more worrying than IT (a background service function you wouldn’t normally even hear about). It’s perhaps even a shareholder issue.

LEAFLETS GIVEN TO SHELL EMPLOYEES AT SHELL CENTRE OCTOBER 2009

Shell sees rise in Nigeria oil theft

LAGOS, Nov 13 (Reuters) – Suspected oil thieves in Nigeria have increased their attacks on Royal Dutch Shell-operated (RDSa.L) oil facilities, the company said on Friday, reporting five separate incidents already in the last three months.

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Shell Calls for Global Expansion of Cap-and-Trade CO2 Programs

Nov. 13 (Bloomberg) — Royal Dutch Shell Plc, Europe’s largest oil producer, said regional mechanisms to reduce carbon dioxide output should be expanded into a global cap-and-trade system to ensure more companies are forced to curb emissions.

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Shell expects the Americas to have big role

Marvin Odum of Shell’s U.S. division says “there is a real focus on this part of the world.” (Photograph: Nick de la Torre: Houston Chronicle)

By BRETT CLANTON Copyright 2009 Houston Chronicle

Nov. 12, 2009, 8:16PM

Royal Dutch Shell sees a bigger role for North and South America as it seeks to boost global output of oil and natural gas in coming years, said Marvin Odum, president of the company’s U.S. division.

Going forward, the region should be a “disproportionately growing part of Shell” as new projects come online in deep waters of the Gulf of Mexico and Brazil, the Canadian oil sands and natural gas fields in the U.S. and Canada, Odum said in an interview with the Chronicle this week.

“There is a real focus on this part of the world inside of Shell,” Odum said, adding that while North and South America account for about a quarter of the company’s production today, investment will be “much higher than that” in the future.

Even so, he still expects hundreds of Shell layoffs in Houston, where Shell employs nearly 13,000, under a recently announced re- organization plan that will ax 5,000 Shell jobs globally by year’s end.

New Shell CEO Peter Voser launched that plan after the global economic slowdown gutted demand for energy and sent oil and gas prices plunging from record-high levels in July 2008.

Shell, based in The Hague, with U.S. headquarters in Houston, said profits in the third quarter slid 62  percent to $3.25 billion. It also reduced its 2010 capital spending budget to $28 billion from $31 billion this year.

But Odum said the reorganization is not simply a reaction to the difficult economic environment. “The goal here is restructuring to a much more streamlined, effective company,” he said. “It’s not about how many jobs can we cut to cut costs.”

Such moves, along with rising commodity prices, recently led Credit Suisse to strike a more positive tone about major oil companies despite dismal earnings in recent months. “The risk-reward on the sector now looks better than it has for some time,” the investment bank said in a Nov. 2 report.

Voser, however, cautioned last month that “the outlook remains very uncertain, and we are not expecting a quick recovery.”

Shell still projects it will grow oil and gas production 2 percent to 3 percent annually through 2012.

Brazil, Canada, Alaska

In the Americas, Shell will see growth in the deep water from its massive new BC-10 project offshore Brazil, as well as its soon-to-open Perdido platform in the Gulf of Mexico. A 100,000 barrel-per-day expansion in the Canadian oil sands is also coming in the next couple of years, Odum said. And Shell hopes to win final approval soon to drill offshore Alaska.

Shell also has amassed a significant portfolio of natural gas opportunities in the U.S. and Canada, he said.

South Texas position

A 2007 partnership with Calgary-based Encana gave Shell access to Louisiana’s Haynesville shale, while a nearly $6 billion deal last year to acquire Duvernay Oil Corp. provided entry into gas fields in Alberta and British Columbia. Shell also has a position in the U.S. Rockies and South Texas, as well as others it won’t yet reveal.

“We could be drilling at twice the rate we are today,” Odum said.

But at the moment, Odum and many in the oil and gas business are keenly focused on the outcome of climate change legislation in Congress, which they worry will burden the U.S. industry with extra costs and force job cuts.

Shell supports a cap-and-trade system that would place limits on greenhouse gas emissions and create a market for trading pollution permits.

More jobs

But Odum said any climate bill should also allow for greater production of oil and gas, nuclear and other traditional energy sources, rather than narrowly focusing on renewables, which are still many years away from being able to meet the nation’s vast energy needs.

“The truth is, if we want to improve the balance of trade, we want more jobs in the U.S., you need to do more oil and gas in the U.S., and you need to do more renewable and alternative energies,” he said.

brett.clanton@chron.com

SOURCE ARTICLE WITH COMMENTS

Protests over pay at blue-chip companies such as Royal Dutch Shell and BP

Lord Myners, the City Minister, and other politicians have urged shareholders to engage with errant companies more actively, prompting a rash of protests over pay at blue-chip companies such as Royal Dutch Shell, BP and Royal Bank of Scotland.

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