Posts from ‘February, 2010’
Posting on Shell Blog on Feb 27th, 2010 at 10:19 am by “guest1”, a regular contributor.
What a load of nonsense in the Forbes article. Shell and IBM to team up etc. We HAD all the expertise but that was removed by the HR and FN idiots that run Shell now. What does IBM know about oil and gasfields? This surely looks like another project, doomed to fail, whereby IBM is going to suck a lot of money out of Shell. Presumably Brinded bought a lot of stock in IBM. RDS appears more and more like an overweight blob, unable to move, being sucked out by the service industry and governments and waiting to die. The sooner someone takes over RDS, splits it up and gets on with the business, the better. The fact they accept all the abuse by the Donovans and are unable and unwilling to defend themselves speaks volumes. If RDS cannot even handle two old codgers with a website, how will they handle real competition????
Associated Press, 02.26.10, 12:52 PM EST
HOUSTON — Royal Dutch Shell PLC and IBM Corp. are teaming up to research how to extend the life of oil and natural gas fields.
IBM‘s analytic and simulation experience will be melded with Shell’s subsurface and reservoir expertise to create a more efficient and accurate picture of how to tap the reserves, the companies said.
The two companies will reformulate and automate the task of reconciling different sets of data, including flow rates and pressure, time-lapse seismic data from subsurface rock formations and sound wave data from between wells.
BAGHDAD, Feb 26 (Reuters) – Talks between Iraq and Royal Dutch Shell (RDSa.L) on a natural gas deal near the southern oil hub of Basra are taking longer than expected but still ongoing, a senior Iraqi oil official said on Friday.
“The heads of agreement will be extended and the project will be presented to the next government,” the official told Reuters on condition of anonymity.
The Iraqi government has been working to finalize the joint venture between its South Gas Company, Shell and Mitsubishi (8058.T). The deal would capture huge amounts of gas for domestic use or export, which is currently wasted by being flared at the oil fields.
Adeola Yusuf: 25 February 2010
Lagos Federal Government came down hard on Royal Dutch Shell on Wednesday over its opposition to the Petroleum Industry Bill (PIB), insisting that the oil major was wrong in its assessment that the bill would block investment.
Ann Pickard, outgoing Regional Executive Vice President, Shell Exploration and Production, Africa, had on Tuesday described the PIB as “a cumbersome document that lacks insight into the very basics of our industry.”
While forecasting a bleak future for the oil and gas industry post-PIB, Pickard, during a public lecture, also criticised the fiscal provisions of the proposed law which she described as the “harshest in the world”.
Shell oil sands costs rise again, partner says
* Athabasca oil sands expansion’s costs rise to $14.3 bln
CALGARY, Alberta, Feb 25 (Reuters) – The cost of a 100,000-barrel-per-day expansion of Royal Dutch Shell Plc’s (RDSa.L) Athabasca oil sands project has climbed to $14.3 billion, Chevron Corp (CVX.N), one of its partners, said in a filing.
The new estimate amounts to $600 million more than the estimate provided by Chevron a year earlier.
Chevron, which hold a 20 percent stake in the oil sands mining and upgrading project, said the expansion will boost output to 255,000 barrels per day.
The cost of completing the project has steadily climbed well beyond Shell 2006 estimate of between C$10 billion and C$12.8 billion ($9.4 billion to $12 billion). Just a year ago, Chevron pegged the cost of the project at $13.7 billion.
We should not give the impression that we are over-concerned with the D’s website, or that management spends a lot of time worrying about it. (Shell)
By John Donovan
I am still studying the Shell internal documents and communications the company was recently obliged to supply to me in accordance with an application under the Data Protection Act.
It is interesting to note the way events in our unusual relationship with Shell have been spun by Shell lawyers, depending on who is being given the information.
Richard Wiseman (right) is now the Chief Ethics & Compliance Officer of Royal Dutch Shell Plc. We crossed swords with him many times during the seven separate court actions we brought against the oil giant, which settled ALL of these claims, involving breach of confidence, breach of contract and libel.
By Tom Burgis in Abuja
Published: February 24 2010 16:13 | Last updated: February 24 2010 16:13
Nigeria on Wednesday hit back at claims by Royal Dutch Shell and other foreign groups that planned reforms threaten $50bn of investment and the countrys status as Africas biggest energy producer.
Shells exit from Angola was not a success story and it throws a slightly different light on Ann Pickards remarks in Nigeria.
Her comment about Angola’s production exceeding that of Nigeria sounds like an attack on Bichsel et al who pulled Shell out of Angola a few years ago. It is Brinded and (especially) Bichsel who threw the Angola opportunity away.
The company has agreed terms for a ten-year lease with Canary Wharf on 200,000 sq ft of Docklands offices
February 24, 2010
A view of the London Eye, located along the Thames River at County Hall, is seen across from the Shell Oil Centre building.
Carl Mortished, World Business Editor
Staff at Royal Dutch Shell will be moved next year from the Shell Centre at Waterloo to Canary Wharf as part of a huge redevelopment of the oil companys historic London headquarters.
The company has agreed terms for a ten-year lease with Canary Wharf on 200,000 sq ft of Docklands offices at 40 Bank Street, a building close to the tower at One Canada Square.
By Tom Burgis in Abuja
Published: February 23 2010 12:52
Royal Dutch Shells outgoing Africa chief on Tuesday delivered a blistering attack on Nigerias management of its vast oil and gas reserves but scotched rumours that the Anglo-Dutch group was looking to leave the country.
Echoing industry claims that planned legislation could deal a killer blow to investment in the fast-expanding deepwater sector, Ann Pickard, whose four-and-a-half-year tenure as Shells Africa boss ends in March, warned the continents biggest energy producer that it risked being eclipsed by its sub-Saharan African rivals.
By Anne-Sylvaine Chassany and Fred Pals
Feb. 23 (Bloomberg) — Royal Dutch Shell Plc, which is seeking to focus on exploration and production, may sell its liquefied petroleum gas distribution unit, four people with knowledge of the plan said.
Shell hired Credit Suisse Group AG to manage a sale of the division, which is valued at more than 800 million euros ($1.1 billion), said three of the people, who declined to be identified because the talks are private. The company sent information last week to potential bidders including private equity firms, they said. Rainer Winzenried, a spokesman for The Hague-based Shell, declined to comment.
Tue Feb 23, 2010 9:55am GMT
ABUJA, Feb 23 (Reuters) – Angola’s offshore oil production is likely to be double that of Nigeria by 2020, Royal Dutch Shell (RDSa.L) said on Tuesday.
The two countries rival each other as Africa’s biggest oil producer, but oil majors say Nigeria risks losing out if changes to its terms make it less profitable to develop deep water reserves.
“By 2020, Angola’s offshore production is likely to be double that of Nigeria,” Shell’s Executive Vice President for sub-Saharan Africa, Ann Pickard, told an industry conference in Abuja.
February 22, 2010 7:56pm
by Ed CrooksSchlumbergers $12bn deal to buy fellow oil services company Smith International, announced on Sunday night and discussed by Andrew Gould, Schlumbergers CEO, on Monday, looks like a turning point. From now on, the cost of oil services seems more likely to rise than fall. One possible reason for that is that the deal will restrict competition. Anti-trust authorities will undoubtedly take an interest, especially in the US, where the two companies paid a $14.6m fine a decade ago for anti-trust violations. The deal will further extend Schlumbergers dominance of the global oil services business, creating a group with more employees than ExxonMobil, BP or Royal Dutch Shell.
“One of the principles underlying all of our work on the Web has been that we should be true to the spirit of New Shell. This means that we are seen to be open, listening, interested in the views of others…”: SHELL CENSOR – MARCH 1999
Shell Internet Censorship
By John Donovan
Printed below is a Shell internal email sent in March 1999. Shell was obliged to supply it to us in accordance with an application we made under the UK Data Protection Act. The “X’s” denote sections redacted (censored) by Shell, which includes the name of its author and apparently an extensive circulation list – 4 lines deep.
Vibeka Mair | 22 Feb 2010
Campaigning charities FairPensions and WWF have joined a coalition which is lobbying oil giants BP and Royal Dutch Shell over their investments in environmentally controversial oil sands developments.
The coalition, which also includes Unison, Greenpeace and the Co-operative banking group, is asking pension scheme members to email their fund managers to push them to support shareholder resolutions against oil sand projects that are due to be voted on at BP and Shells annual general meetings this spring.
When the recession hit, the major companies streamlined, cut costs and became more efficient, giving them a shot at a profit comeback
By BRETT CLANTON
Feb. 21, 2010, 4:32PM
Big Oil has had a little less swagger in its step of late, humbled by a global recession that halted a multi-year run of soaring profits and exposed weaknesses that had been less acute when times were good.
International giants like Exxon Mobil and BP have suffered the effects of the economic downturn, which brought the first significant decrease in global energy demand in nearly three decades, created wild gyrations in oil and natural gas prices and wreaked particular havoc on the oil refining business.
Printed below is an article by Tony Allwright, a retired Irish Shell EP manager. It is published on his blog. It was brought to our attention by a Shell insider who shares the views expressed and believes the article deserves wider publication.Organizational Dementia
By Tony Allwright
We are all familiar with elderly people sometimes being a bit forgetful. This is no surprise, for just as the body gets weak over time, so can the brain.
What is surprising, however, is that organizations can likewise become forgetful and this can be very costly. The memory of an organization is held in two ways: in its paper and electronic records and in the minds of its employees, however the latter are also relied upon to access the former.
February 21, 2010, 07:10 PM EST
By Eduard Gismatullin and Marianne Stigset
Feb. 22 (Bloomberg) — BP Plc and Royal Dutch Shell Plc may falter in their campaigns to save billions in oil and gas project costs as a resurgence in drilling and demand for engineers threaten to revive inflation in the industry.
Crude prices doubled in the past year, prompting producers to resume projects put on hold during the recession. Oil and gas industry spending will rise 11 percent this year to $439 billion, according to Barclays Capital.
Review by Ed Crooks
Published: February 22 2010 05:00 | Last updated: February 22 2010 05:00
Beyond Business: An Inspirational Memoir from a Visionary Leader
By John Browne
Weidenfeld & Nicolson £20, 336 pages
FT Bookshop price: £16
By Brian Groom, Business and Employment Editor
Published: February 21 2010 23:03
A two-tier market is emerging in executive pay in the UKs largest listed companies, with those that have come strongly through the recession able to offer better remuneration than their rivals, according to new research.
Royal Dutch Shell, ranked ninth in 2007-08 with £11.4m, rose to third last year with £15.3m. But the company is now freezing executive directors salaries for a year as part of a new pay structure after an investors revolt.
Sat Feb 20, 2010 7:56am EST
BASRA, Iraq (Reuters) – Iraq has no further plans to use foreign firms to develop its oilfields beyond ones auctioned off last year, the country’s prime minister said on Saturday, ahead of a national election next month.
Analysts say that foreign companies may have accepted the tough terms in oilfield development contracts awarded in two rounds last year partly to secure an initial foothold in Iraq, with a view to possible access to other untapped reserves later.
SAN BERNARDINO SUNJesse B. Gill, Staff Writer Posted: 02/19/2010 04:18:29 PM PST
REDLANDS – City attorneys entered into a jury trial in early February in an attempt to get Shell Oil Company to clean up a mess the city says Shell made. The city launched a lawsuit against Shell in 2004 over contaminated ground water. The lawsuit began a jury trial Feb. 4.
“The city brought the lawsuit to be proactive,” said Chris Diggs, the city’s water resources manager. “We want to ensure the sufficient supply of safe drinking water.”
Shell manufactured the chemical product D-D that farmers injected into the soil to kill nematodes – tiny worms that can attack root systems and kill crops. The use of D-D is common by farmers, but Diggs said Shell included an uncommon – and unnecessary – chemical.
By Alexis Xydias
Feb. 19 (Bloomberg) — Royal Dutch Shell Plc shares are a trading buy before the company uptades investors on its strategy on March 16, analysts at Credit Suisse Group AG wrote in a report today.
We argue that the market remains keen to call the turn in Shell after seven years of production decline and operational struggles, and that the annual strategy update conducted by Chief Executive Officer Voser in his sophomore year in charge will, rightly or wrongly, be viewed as a catalyst in this turnaround process, the note said.
The Irish Times – Thursday, February 18, 2010
LORNA SIGGINS Marine Correspondent
SHELL EP Ireland has confirmed that work on several key aspects of the Corrib gas project will not now take place this year.
The company told The Irish Times yesterday that the decision was taken for operational and community reasons.
It will undertake further work on the offshore pipeline this year, but intends to take an integrated approach to the offshore/onshore dimension next year, when it hopes that permitting processes will be further advanced.
The Press and Journal
Shell to re-tender main offshore maintenance, modification and projects deal in near future
By Ian Forsyth
Thursday 18 February 2010
Shell UK is looking to cut the cost of a major contract, currently carried out by around 1,000 workers.
The company said yesterday it would re-tender its main offshore maintenance, modification and projects deal in the near future.
The contract, which started in 2002, covers all Shell-operated assets in the central North Sea plus the Brent field in the northern North Sea. The work is carried out at the moment by Sigma 3, whose members are Wood Group, AMEC and PSN.
By Robin Harding, Louise Lucas, and Paul Betts
Published: February 17 2010 00:12
Executives can put up to half their annual bonus into the plan, half of which in turn will be matched at varying levels by Shell if it ranks in the top three. If the oil group ranks first among its peers, executives will receive double those shares in short, half their annual bonus again. The underpinning concept, meantime, of ranking against a small peer group over time, everyone gets a look-in at the top remains flawed.
By Gordon Deegan
Wednesday February 17 2010
Shell Ireland has received a fresh 80m cash injection to finish works to allow gas to be taken from the Corrib gas field.
The cash injection represents a 23pc increase in the company’s share capital to 424m.
A Shell spokesman yesterday confirmed the equity “is toward the operational expenses in relation to the ongoing development of the Corrib project”.
Royal Dutch Shell has frozen the pay of its top executive directors and imposed new rules on bonuses, as it tries to appease investor anger over excessive remuneration.
By Rowena Mason, City Reporter (Energy)
Published: 9:11AM GMT 16 Feb 2010
Last year, Shell’s board suffered an embarrassing shareholder revolt over their pay packages, which awarded bonuses to executives who had failed to hit their targets.
Since then, the company has been consulting with major shareholders about more appropriate remuneration policies.
In a letter to investors , Hans Wijers, chairman of the remuneration committee, said the move would “better align remuneration policy with shareholder interests and long-term strategy”.
Shell responds to last May’s shareholder revolt over pay
Salaries frozen until 2011, with pledge on bonuses and targets
Tuesday 16 February 2010 10.36 GMT
Shell has frozen salaries after a row with shareholders. Photograph: Leon Neal/AFP/Getty Images
The oil group has been in talks with major shareholders since the embarrassing revolt at last May’s annual meeting when 60% voted against a pay deal that included discretionary bonuses for top directors who had failed to hit targets.
February 17, 2010
Robin Pagnamenta and Robert Lindsay
Royal Dutch Shell said that it would freeze the salaries of its top directors and reform a generous bonus scheme as the oil giant moved to soothe shareholders anger over excessive boardroom pay before its annual meeting.
In a letter to investors, Hans Wijers, the new chairman of the Anglo-Dutch companys remuneration committee, said that the changes were being made after extensive talks with shareholders, 60 per cent of whom voted down the executive pay plans at a stormy annual meeting last year.
By Sheila McNulty in Houston and Anna Fifield in Washington
Published: February 16 2010 20:48
BP, Europes biggest oil company, has pulled out of the leading business group lobbying for curbs on US greenhouse gas emissions, a sign of fragmentation in the campaign for climate and energy legislation.
THE NEW YORK TIMESBy JAD MOUAWAD Published: February 16, 2010
Energy companies are on the prowl again.
After a two-year slowdown in mergers and acquisitions in the industry, companies are once again looking for ways to use their checkbooks to expand their reserves, buy new technology or snap up promising oil and gas fields.
Unlike the round of mergers that created todays behemoths in the late 1990s, the current round is not expected to form new giant companies like Exxon Mobil or ConocoPhillips. This time, companies are focused on buying fast-growing small companies, or on acquisitions that expand their reserves in an era when it is hard for them to find new places to drill.
A document released with the stolen database suggests Shell could face more breaches.
By Richard Thurston, 16 Feb 2010 at 15:13
A lengthy document sent by allegedly disillusioned Shell employees to leading environmental and human rights activists sought to launch a corporate revolution at the oil giant.
The document, which was given to IT PRO, was attached to a leaked database containing contact details of nearly every Shell employee. It was sent by 116 disillusioned full-time employees in the US, the UK and the Netherlands to Greenpeace and other campaign groups active in Nigeria.
The document contained information on how the contact database could be used change the way Shell operates, by influencing employees, the public, top institutional investors and non-governmental organisations.
THE WALL STREET JOURNAL
FEBRUARY 16, 2010
By JAMES HERRON
LONDONRoyal Dutch Shell PLC on Tuesday proposed changes to the way it pays its executive directors in an attempt to assuage concerns that led shareholders to reject its remuneration package last year.
The proposals constitute a significant step toward greater pay restraint at one of the world’s largest companies at a time when excessive awards to executives, particularly at banks, are a political hot potato.
The salaries of Shell Chief Executive Peter Voser and Finance Chief Simon Henry will be 20% lower than those paid to their predecessors and will be frozen from July 2009 until January next year, according to proposals outlined in a letter from the chairman of Shell’s remuneration committee, Hans Wijers.
LONDON (Reuters) – Royal Dutch Shell Plc (RDSa.L) said it was overhauling its pay practices for top management, including a pay freeze for its chief executive, Peter Voser, and a limit on bonuses, after a shareholder revolt last year.
The head of Shell’s remuneration committee said salaries for Voser and Chief Financial Officer Simon Henry, which are 20 percent lower than their predecessors’, were being frozen until 2011.
Directors will not, this year, be allowed to award management bonuses if they fail to meet pre-agreed targets.
Shell today bowed to shareholder anger over its senior staff pay by announcing it was freezing the salaries of its three top directors this year.
Chief executive Peter Voser and chief financial officer Simon Henry, whose salaries are 20 per cent lower than previous pay for their positions, will not get a rise until 2011. The international exploration boss, Malcolm Brinded, will also be affected by the freeze.
Shell also said it was preventing bonuses from rising this year and told shareholders of its decision. Last May, shareholders owning almost 60 per cent of the business voted against directors’ pay deals.
Shell media spin machine went into overdrive last week trying to downplay the worlds biggest ever leak of employee details, including personal information, which Shell Ethics boss Richard Wiseman, has twice admitted puts the safety of some employees at risk.
A copy of a related email from Mr Wendel Broere, Group spokesman, Global media relations, Shell International B.V, desperately engaged on a damage limitation exercise with the news media, was leaked to me on the day it was sent. My role is discussed in the email, no doubt because I am the person who broke the story which turned into a global PR disaster for Shell, with all kinds of unwelcome repercussions, including an investigation by the Information Commissioners Office and the prospect of a fine for being reckless with confidential employee data.