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Posts from ‘December, 2009’

Shell: Mulls Sale Of Gothenburg, Sweden Refinery

December 15, 2009

LONDON (Dow Jones)–Oil major Royal Dutch Shell PLC (RDSB) may sell its Gothenburg refinery and marketing operations in Sweden, the company said Tuesday.

“Shell has started to gauge potential interest in the Gothenburg refinery and marketing businesses,” company spokeswoman Kirsten Smart said in an emailed statement. “It is very early days and we are at a very early stage of the process,” she added.

The move is in line with a shift in Shell’s global downstream strategy toward larger, more flexible and sophisticated refinery sites.

“Shell’s global downstream strategy is driven by several factors, including the reduction in capital expenditure in some markets and a refocusing of the downstream footprint, including a shift in our refining portfolio toward larger-scale, complex, integrated assets,” Smart said.

Separately, Shell is in talks with Indian firm Essar Oil Ltd. (500134.BY) over the sale of Shell’s Stanlow refinery in the U.K. and the Heide and Harburg plants in Germany.

Shell plans to sell off about 15% of its global refining capacity, or about 600,000 barrels a day of capacity, in the next three years as part of its restructuring program aimed at increasing profitability and efficiency. It agreed in September to sell its fuel and lubricant businesses in Greece for about EUR260 million.

Company Web site: www.shell.com

-By Lananh Nguyen, Dow Jones Newswires; +44 (0)20-7842-9479; lananh.nguyen@dowjones.com

(James Herron in London contributed to this report.)

WSJ ARTICLE

HOW SHELL PLANNED TO DECEIVE BILL O’REILLY OF FOX NEWS

By John Donovan

Printed below is an email sent today to Mr Bill O’Reilly, presenter of The O’Reilly Factor at Fox News. It concerns Shell’s controversial plans in Iran, which will financially support the current fanatical Iranian regime.

From: John Donovan <john@shellnews.net>
Date: 15 December 2009 11:17:42 GMT
To: oreilly@foxnews.com
Subject: HOW SHELL AND ITS LAWYERS PLANNED TO DECEIVE BILL O’REILLY

Hello Mr. O’Reilly

Apologies that this email is not short and pithy. The subject is deadly serious and deserves proper explanation. Shell managers and lawyers on two continents plotted to deceive you over the background context of me bringing to your attention, the oil giants plans to do business with the fanatical regime in Iran, which supplies munitions that kill and maim our brave soldiers in Iraq and Afghanistan.

I am sure you are well aware that the high and mighty tremble when they learn of any interest by you in their affairs. I have proof that this also applies to the multinational giant that Forbes says is the worlds largest company, Royal Dutch Shell Plc.

On 19 March 2007 I sent an email to you which I also published on my website, royaldutchshellplc.com. The subject: “Shell’s Treachery in Iran”. There was no reply and I thought no more about it.

On November 30, 2009, Shell supplied me with internal documents it was compelled to provide in accordance with an application I made under the UK Data Protection law.

Although names of relevant individuals – including yours – have been redacted by Shell, otherwise the content is intact and due to the incompetence we have come to expect from its lawyers, they neglected to delete your name from one page.  I was surprised to discover from Shell email correspondence with Fox News that your team had taken up the matter with Shell. The related Shell internal email correspondence is even more revealing.

As you can see from the repetitive fragmented correspondence (Fox News 1 & 2, basically Shell was panicking about the prospect of you taking up my suggestion that you should launch a campaign for Americans to boycott Shell. The oil giant was concerned at what the public reaction would be if you picked up the story and “how it may effect Shell’s assets and personnel“. There was also concern about the impact on a 50 city tour being undertaken by the then President of Shell Oil, John Hofmeister. They were frightened that the story would gain traction if you took it up.

Shell managers and lawyers carried out research then prepared a contingency response statement designed to distance Shell in the USA from our “dispute” with Shell and create the impression that the response statement was from Shell in the USA, not from Shell Europe i.e. not from Royal Dutch Shell HQ. In other words, the contingency response statement was deliberately designed to deceive you and your viewers.

Though Shell’s trepidation over the “Shell’s Treachery in Iran” story being picked up by you is evident from the internal email correspondence, the carefully prepared Shell statement containing erroneous background information, conspicuously does not even mention Iran. It is referred to as “this case”.

Shell is frightened of you Mr O’Reilly, but is still prepared to engage in spin and deception to protect its ambitions in Iran, even though the Iranian regime is developing nuclear weapons, threatens to destroy Israel, is arming Iraqi insurgents and the Taliban in Afghanistan; all in line with its fanatical determination to confront “the Great Satan”.  I hope this makes you extremely angry.

Shell briefly appeared to distance itself from Iran, but this was another PR illusion conjured up for short term consumption. In fact Shell offices are operational in Iran and on 7 December 2009 a news report announced that Iran is finalizing talks with Shell for its participation in a multibillion dollar Liquefied Natural Gas Venture.

Opposition to Shell’s plans in Iraq continue in the USA. The state of Maryland announced last month that it has divested $38.3 million from Shell. In October, U.S. Congressmen warned Shell it could be banned from the U.S. However, because of the global financial meltdown since I sent my March 2007 email to you, what is going on behind the scenes in relation to Shell and Iran has largely escaped the attention of ordinary Americans. Drivers continue in their millions to purchase Shell gas unaware that they are ploughing funds into a company which, despite threatened US sanctions, is intent on trading with and therefore financially supporting the current Iranian regime, America’s most dangerous and implacable enemy.

Concern over the deaths of American soldiers in Afghanistan from weapons supplied by the Iranians continues. Time Magazine published an article on 28 October 2009 reporting that October was “the deadliest month of the eight-year war when the death of eight more U.S. troops took the month’s death toll to 53.” The article says that according to U.S. intelligence: “Taliban develops increasingly deadly weapons — with Iran’s help…”

The Time article goes on to say:

Dennis Blair, the director of national intelligence, told the Senate Intelligence Committee earlier this year that “Iran has both long-term strategic and short-term tactical interests in Afghanistan and is not content with merely maintaining the status quo.” Its desire to undermine “Western influence in Afghanistan” had led it to provide “select Afghan insurgents with lethal aid,” he said.

Consequently, the points I made in my email to you in March 2007 remain valid and pressing. I hope you will ask your staff to look into this again, armed with the knowledge that Shell is prepared to deliberately deceive you.

This is a company that will deal with the devil to fuel its unquenchable thirst for oil and gas.

Shell saved Hitler and the Nazi party. A Director General of Shell, Sir Henri Deterding, spent four days as a guest of Hitler at Berchtesgaden (the Eagle’s Nest). His objective was to obtain a monopoly for petrol distribution in Germany. He also encouraged Hitler to invade Russia, as Shell had ambitions on Russian oil fields.  More recently, Shell funded the corrupt Nigerian dictator, General Sani Abacha, during Shell’s plunder and pollution of the Niger Delta. It is now doing business with Gaddafi in Libya despite the bombing of Pan Am flight 103.

Securing access to oil and gas, as always, has a much higher priority for Shell fat cat executives than any moral consideration, including the deaths of American and British soldiers who have given their lives in Iraq and Afghanistan to fight terrorism, with thousands of others receiving terrible physical and psychological injuries.

Shell is a hypocritical company, which claims to work within a set of core business principles including openness, integrity and honesty, while secretly spying on its own employees on a global basis. The internal documents released to me revealed this fact and that Royal Dutch Shell Plc, a foreign owned company, has used the global hub of anti cyber-crime – the U.S. National Cyber-Forensics & Training Alliance in Pittsburgh, largely funded and staffed by the FBI, to assist in a spying operation trying to trace whistleblowers leaking information to us. The emails include an extraordinary endorsement of our website by Shell which they sent to Fox News, never anticipating that it would fall into our hands.

For the record, we have no “dispute” with Shell, but are simply campaigning for the company to act in accordance with its own claimed ethical code, which in our view is designed to trick ethical investment funds into investing in an unethical immoral company.

In this connection, please note that there was no mention in the Shell emails flying back and forth about the moral issues involved in Shell effectively providing financial support to the fanatical Iranian regime.

I am still trawling through the documents supplied by Shell and will let you know if I come across more relevant information.

Background information about our website:

92-year-old’s website leaves oil giant Shell-shocked

Two men and a website mount vendetta against an oil giant

The bottom line is that Shell was concerned about this story “blowing up”. I am more concerned about Iranian supplied munitions blowing up and killing and maiming our brave soldiers. I sincerely hope you will take up this important cause.

Best regards from two elderly but devoted fans

Alfred & John Donovan

Increased need for plant jobs

Dec 14, 2009: The Beaumont Enterprise

The largest prospect in Southeast Texas is at the Motiva Enterprises refinery, which plans to hire eight major contractors to build its $7 billion refinery expansion — perhaps as early as the first three months of 2010.

That would be about a year after Motiva completed what it called a “cost review” of the project as the price of oil dropped and worldwide demand for refined product slackened. Still, Motiva kept bringing in the major pieces of equipment for the expansion.

Those contractors will have hired a construction work force of about 6,500 by mid-2010, said Nick Smallwood, Motiva’s expansion project director, told The Enterprise in an e-mailed statement.

“They will then hire a variety of subcontractors. At that point, the project will shift to a more intensive construction pace,” Smallwood said.

Motiva refinery’s general manager, Forrest Lauher, said the project is planned for completion in early 2012.

COMPLETE ARTICLE

Chevron: Strikes Natural Gas In Carnarvon Basin, Australia

THE WALL STREET JOURNAL: DECEMBER 14, 2009

SYDNEY (Dow Jones)–Chevron Corp. (CVX) said Tuesday that an exploration well had struck natural gas in the Carnarvon basin offshore Western Australia state.

Chevron said results from the Satyr-1 well, drilled in a water depth of more than 1,000 meters, indicated approximately 130 meters of net gas pay.

The deepwater discovery supports the long-term growth plans for the Gorgon liquefied natural gas project, Chevron said.

Chevron is the operator of the WA-374-P permit area where the latest discovery was made. Units of Royal Dutch Shell Plc (RDSB) and ExxonMobil Corp. (XOM) each have 25% interests in the license.

-By David Winning, Dow Jones Newswires; +61-2-82724688; david.winning@dowjones.com

WSJ ARTICLE

Oil executives gird for work in risky Iraq including Shell VP for dealing with corrupt governments: Mounir Bouaziz

“Security is an important element,” said Mounir Bouaziz, a senior executive from Royal Dutch Shell (RDSa.L). “I wouldn’t do anything unless I was convinced we had all the measures in place. We have been in Basra since October 2008. We have been doing work and visiting sites, so we learned a lot about security. Security is about behavior and relationships.”

Click to continue reading “Oil executives gird for work in risky Iraq including Shell VP for dealing with corrupt governments: Mounir Bouaziz”

Iraq win gives Shell a boost

FINANCIAL TIMES

Majnoon win gives Shell a boost

By Carola Hoyos, Chief energy correspondent

Published: December 14 2009 20:54 | Last updated: December 14 2009 20:54

EXTRACTS

Royal Dutch Shell, in particular, is counting its blessing…

Shell, out of all of its peers, is struggling most to step up its production as old, profitable fields decline and new reserves are proving increasingly difficult to secure.

Moreover, the Anglo-Dutch oil group carries a very large extra burden. Shell has to fill the void left in 2004 when it was forced to cut its proved reserves by about a quarter after realising the company should never have booked those reserves with the Securities and Exchange Commission, the US regulator, in the first place.

Shell has since tried to spend its way out of the gaping hole the error has left in its explorations and production portfolio. Shell has the sector’s biggest capital expenditure budget of between $30bn and $33bn (£20.6bn) this year. BP, Shell’s closest competitor and another entrant in Iraq, has capex of $20bn this year. On a per barrel basis, Shell spends more than twice as much as BP.

But Peter Voser, Shell’s new chief executive, has promised to rein in costs, making the task of finding new reserves and production even more challenging.

So it must have been with some relief that Shell on Friday found it had put in the winning bid to develop Iraq’s Majnoon oil field.

“Psychologically, Iraq was more important to Shell than BP because they [Shell] are really struggling to stabilise production, let alone grow it,” says Peter Hitchens, an analyst at Panmure Gordon in London.

FULL FT ARTICLE (SUBSCRIPTION)

Exxon Mobil to buy XTO Energy for $31 billion

ASSOCIATED PRESS

By MARK WILLIAMS (AP) –

Exxon Mobil will buy XTO Energy in an all-stock deal worth $31 billion as the oil giant moved aggressively Monday to capitalize on the growing supply of natural gas at home.

The deal could signal a new rush to own natural gas assets by major integrated producers, and perhaps the start of a significant consolidation in the energy industry.

“Exxon is the group leader and it sets the trend. I would expect more acquisitions in the next three to six months,” said Fadel Gheit, senior energy analyst for Oppenheimer. “Who that will be is the $64,000 question.”

Exxon is closely watched in the industry and an acquisition like XTO could prompt other companies like Royal Dutch Shell PLC, BP BLC or Chevron Corp. to move.

Potential targets include big natural gas companies like Chesapeake Energy, Devon Energy and Anadarko, Gheit said.

XTO shows the priority that major producers are giving to natural gas as a fuel source. New technology has unlocked trillions of cubic feet of natural gas at home, meaning energy producers do not have to navigate tricky political environments overseas.

That doesn’t mean that those projects are being excluded.

Exxon just last week gave the go-ahead for a $15 billion natural gas project in Papua New Guinea, positioning the world’s largest publicly traded oil company to provide energy to a fuel-hungry China.

XTO claims about 45 trillion cubic feet of gas, much of it trapped in tight formations known as shale. Shares in the company jumped 16 percent, or $6.64, to $48.13 in early trading.

Shares of Exxon fell 3.5 percent, or $2.51, to $70.32.

Exxon has signaled recently that it was moving increasingly toward landing natural gas assets. Once the deal closes, Exxon said it will establish a new organization to manage global development and production of unconventional resources.

The company, based in Irving, Texas, will issue 0.7098 common shares for each common share of XTO, representing a 25 percent premium to XTO stockholders. Exxon also will assume $10 billion in XTO debt.

The deal values XTO’s shares at $51.69, based on the closing price Friday.

“XTO has a proven ability to profitably and consistently grow production and reserves in unconventional resources,” Bob Simpson, chairman and founder of XTO, said in a statement.

Simpson is one of the highest paid executives in the United States. His compensation last year was valued at $53.5 million.

He retired as CEO in 2008.

SOURCE ARTICLE

Groups to dig deep for Nigerian leases

Financial Times

By Tom Burgis in Lagos

Published: December 13 2009 22:58 | Last updated: December 13 2009 22:58

Three of the world’s biggest oil companies are poised to pay hundreds of millions of dollars to hold on to prime concessions in Nigeria following keen Chinese interest in the planet’s 10th richest crude reserves.

ExxonMobil, the largest US oil group, is to pay a “signature bonus” of as much as $600m after securing a new 20-year lease to three blocks it has operated for four decades and which currently produce 580,000 barrels a day, people familiar with the situation said.

Royal Dutch Shell is close to finalising similar renewals that might see it surrender some concessions, industry insiders said, while Chevron, the second placed US group, is yet to agree a deal even after some of its leases expired at the end of last month.

READ THE FULL FT ARTICLE (SUBSCRIPTION)

Woodside May Seek Up to A$3 Bln From Rights Issue, Review Says

BLOOMBERG.COM

By Tim Smith

Dec. 14 (Bloomberg) — Woodside Petroleum Ltd. plans to seek as much as A$3 billion ($2.7 billion) from a rights issue as early as today to fund its liquefied natural gas expansion plans, the Australian Financial Review reported, citing sources.

Royal Dutch Shell Plc, which owns 34 percent of Woodside, plans to support the offer, which is expected to be handled by Citigroup Inc., UBS AG and Credit Suisse Group AG, the newspaper said.

To contact the reporter on this story: Tim Smith in Sydney at tsmith58@bloomberg.net

Last Updated: December 13, 2009 14:12 EST

SOURCE ARTICLE

OIL GIANTS SHELL AND BP DUMP ASSETS

Times Online

OIL GIANTS DUMP ASSETS

The Sunday Times

Business Digest

December 13, 2009

OIL groups Royal Dutch Shell and BP have put up $1 billion (£615m) of European assets for sale.

Shell has appointed Lazard, the investment bank, to sell its Swedish arm, which includes a refinery in Gothenburg, a marketing arm, and its network of more than 400 petrol stations. It hopes to pocket about $750m from the exit.

BP, meanwhile, has put its French petrol stations up for sale. The $200m business employs more than 2,000 people.

TIMES ARTICLE