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Posts from ‘January, 2013’

Shell tries to downplay historic precedent setting verdict

By John Donovan

The Times published an important article by Tim Webb today under the headline: “Shell counts cost of oil damage in Niger Delta.” (Page 39, Thursday 31 Jan 2013). Tim correctly makes the simple, but immensely important point: “IT IS THE FIRST TIME THAT A COURT OUTSIDE NIGERIA HAS ORDERED SHELL TO PAY FOR POLLUTION IN THE DELTA AND THE RULING LEAVES IT VULNERABLE TO MORE CLAIMS.” Shell has predictably tried to downplay this historic, precedent setting verdict.

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Shell: The Slumbering Giant

Thursday, January 31, 2013

By ANDREW PEAPLE

Royal Dutch Shell RDSB.LN -2.88% isn’t an obvious candidate for sympathy. The oil and (increasingly) gas major raked in $26.6 billion last year, with Brent crude-oil prices averaging above $100 per barrel.

Yet Shell’s full-year earnings were 14% down on 2011 and missed consensus forecasts, while its oil output rose by just 1%.

The results capture Shell’s investment proposition perfectly: Its sheer scale and operational expertise mean shareholders can sleep easy, but they’re unlikely to dream big.

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Shell to Boost Exploration Spending

January 31, 2013

Falling profits at Royal Dutch Shell last year could be explained by volatile oil and gas prices. But Heard on the Street’s Andrew Peaple reckons economies of scale may no longer be working for the oil behemoth.

LONDON—U.K.-listed oil and gas company Royal Dutch Shell RDSB.LN -2.73% PLC Thursday said it would increase capital expenditure this year, despite the uncertain global economic outlook, with the aim of finding and developing more resources and rejoining the ranks of the world’s top oil and gas producers by 2018.

The spending plans came as Shell missed expectations by posting a 13% rise in profit for the fourth quarter, with analysts expressing concern about the amount of money the company spent on exploration.

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Shell Misses Profit Estimates, Says Investment Costs to Increase

By Brian Swint – Jan 31, 2013 8:04 AM GMT

Royal Dutch Shell Plc (RDSA), Europe’s biggest energy company, said investment will increase after fourth-quarter profit missed analyst estimates on weaker North American fuel prices.

Excluding one-time items and inventory changes, profit was $5.6 billion. That was below the $6.2 billion average estimate of 11 analysts surveyed by Bloomberg. Net capital spending of about $33 billion this year compares with $30 billion in 2012.

Higher costs of getting oil and gas to production are offsetting gains from rising output and record Brent crude prices. Chief Executive Officer Peter Voser is trying to appease investors by raising the dividend in the first quarter, and he expects to increase output to about 4 million barrels of oil equivalent a day in 2017 from 3.3 million barrels last year.

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Royal Dutch Shell profits hit by oil price volatility

31 January 2013 Last updated at 07:41

Annual profits at Royal Dutch Shell have fallen to $27bn (£17bn), from $28.6bn in 2011.

Profits for the last three months of the year rose to $7.3bn, against $6.5bn, but Shell was hit by generally weaker oil and gas prices during 2012.

Peter Voser, chief executive of Europe’s biggest oil company, said 2012 was a year of “headwinds”.

But he added that Shell was “delivering a strategy that others can’t easily repeat”.

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Dutch court says Shell responsible for Nigeria spills

(Reuters) – A Dutch court ruled on Wednesday that Royal Dutch Shell’s Nigerian subsidiary was responsible for a case of oil pollution in the Niger Delta and ordered it to pay damages in a decision that could open the door to further litigation.

 By Ivana Sekularac and Anthony Deutsch THE HAGUE | Wed Jan 30, 2013 8:06am EST

(Reuters) – A Dutch court ruled on Wednesday that Royal Dutch Shell’s Nigerian subsidiary was responsible for a case of oil pollution in the Niger Delta and ordered it to pay damages in a decision that could open the door to further litigation.

The district court in The Hague said Shell Petroleum Development Company of Nigeria Ltd. (SPDC), a wholly-owned subsidiary, must compensate one farmer, but dismissed four other claims filed against the Dutch parent company.

Four Nigerians and campaign group Friends of the Earth filed suits in 2008 in The Hague, where Shell has its global headquarters, seeking reparations for lost income from contaminated land and waterways in the Niger Delta region, the heart of the Nigerian oil industry.

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Shell faces damages over Nigeria oil spill

Speaking to Al Jazeera, Channa Samkalden, a lawyer acting on behalf of the Nigerian farmers, said:  “Overall it’s actually quite a good outcome for us. “At least Shell was held liable for one of the cases. That’s a good start. Also, a very important fact is that the court has said that Shell has a duty to take measures to prevent sabotage, which is of course a principal issue.”

30 Jan 2013

Dutch court upholds just one out of five allegations by Niger Delta farmers against the oil company.

A court in the Netherlands has ruled that Royal Dutch Shell can be held partially responsible for pollution in Nigeria’s Niger Delta region and ordered it to pay damages to one farmer.

The court dismissed on Wednesday four out of five allegations against the oil company. The amount of damages to be paid was to be announced at a later date.

Activists say the case could set a precedent for damage claims related to the foreign activities of multinational companies.

Four Nigerians and interest group Friends of the Earth filed the suit in 2008 in The Hague, where Shell has its joint global headquarters, seeking unspecified reparations for lost income from contaminated land and waterways in the Niger Delta.

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Dutch court rejects most of Shell spill case

A Dutch court has ruled that a subsidiary of international oil giant Royal Dutch Shell should be held responsible for pipeline leaks poisoning farmland in Nigeria. It was believed to be the first time a Dutch court has held a multinational’s foreign subsidiary liable for environmental damage and ordered it to pay damages.

A Friends of the Earth banner outside court ahead of the case of Nigerian farmers against Shell, in The Hague, Netherlands.(Photo: Peter Dejong, AP)

January 30, 2013

THE HAGUE, Netherlands (AP) — A Dutch court has ruled that a subsidiary of international oil giant Royal Dutch Shell should be held responsible for pipeline leaks poisoning farmland in Nigeria.

In its ruling Wednesday, the Hague Civil Court rejected most of a landmark case brought by Nigerian farmers and environmental pressure group Friends of the Earth against Shell, saying the leaking pipelines were was caused by saboteurs, not Shell negligence.

However, in one case the judges ordered a subsidiary, Shell Nigeria, to compensate a farmer for breach of duty of care by making it too easy for saboteurs to open an oil well head that leaked on to his land.

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Shell Nigeria case: Court acquits firm on most charges

A Dutch court has rejected four out of five allegations against Anglo-Dutch oil giant Shell over oil pollution in Nigeria’s Niger Delta region. But it found a subsidiary of the firm, Shell Nigeria, responsible for one case of pollution, ordering it to pay compensation to a Nigerian farmer.

30 January 2013 Last updated at 13:02

A Dutch court has rejected four out of five allegations against Anglo-Dutch oil giant Shell over oil pollution in Nigeria’s Niger Delta region.

But it found a subsidiary of the firm, Shell Nigeria, responsible for one case of pollution, ordering it to pay compensation to a Nigerian farmer.

Shell said it was “happy” with the verdict in the landmark case.

The case was brought by four Nigerian farmers and Friends of the Earth, which says it is “flabbergasted”.

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How Four Nigerian Villagers Took Shell to Court

Four Nigerian villagers from the Niger River delta have challenged mighty Shell in a Dutch court. They complain that the oil giant has caused environmental devastation and ruined their homes. A verdict in the unprecedented case is expected today.

Battling Big Oil: How Four Nigerian Villagers Took Shell to Court

By Nils Klawitter

Four Nigerian villagers from the Niger River delta have challenged mighty Shell in a Dutch court. They complain that the oil giant has caused environmental devastation and ruined their homes. A verdict in the unprecedented case is expected on Wednesday.

Royal Dutch Shell CEO Peter Voser likes to talk about the good deeds his company performs worldwide. “Sustainable development and social performance is absolutely key in the way we do our business,” says Voser, a Swiss national. The head of Shell feels a duty to pursue such noble objectives as observing human rights and protecting the environment.

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Dutch civil court ruling on Shell’s responsibility for cleaning up oil spills in Nigeria

Published January 30, 2013 by Associated Press

THE HAGUE, Netherlands –  Dutch judges are ruling in a landmark civil action by Nigerian farmers who want to hold oil giant Shell liable for poisoning their fish ponds and farmlands with leaking pipelines.

The decision being announced Wednesday could set a legal precedent for holding multinationals responsible for their actions overseas.

Lawyers for the four Nigerians from the oil-rich Niger delta argue Shell makes key policy decisions at its Hague headquarters, so the Dutch court has jurisdiction.

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Selection of Shell related article links 29 Jan 2013

Selection of Shell related article links kindly supplied by a regular contributor

Teck and Shell bicker over oil sands projects: National Post-CALGARY — A land dispute with Shell Canada Ltd. is threatening Teck Resources Ltd.’s first standalone oil sands project, adding uncertainty …

President Obama Should Prioritize Protecting the Arctic as Part of …: Huffington Post (blog)-Shell Oil Company’s Arctic drilling program once again came under national scrutiny when its drill rig, the Kulluk, ran aground off of Alaska’s …

HSBC: Oil majors at risk from ‘unburnable’ reserves: Business Green-Oil and gas majors, including, BP, Shell, and Statoil, could face a loss in market value of up to 60 per cent should the international community …

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