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Financial calamity could engulf Shell in event of a Prelude FLNG or Arctic Disaster

Screen Shot 2014-02-10 at 16.29.29To the best of my knowledge, both Shell projects are fraught with danger, are pushing the bounds of technology, have attracted risk warnings from experts and are self-insured by Shell because no commercial contingency insurance specialists are willing to provide cover. 

By John Donovan

An article published today by Reuters gives some idea of the financial calamity that could engulf Shell in the event of  a Prelude FLNG or Shell Arctic drilling disaster, with potential for even more dire consequences. 

Extract from Reuters article published 18 April 2014 under the headline: “Compensation battle rages four years after BP’s U.S. oil spill

The oil company has spent over $26 billion on cleaning up, fines and compensation for the disaster, which killed 11 people on the rig and spilled millions of barrels of oil into the Gulf of Mexico for 87 days after the blast on April 20, 2010.  That is more than a third of BP’s total revenues for 2013, and the company has allowed for the bill to almost double…

To the best of my knowledge both Shell projects are fraught with danger, are pushing the bounds of technology, have attracted risk warnings from experts and are self-insured by Shell because no commercial contingency insurance specialists are willing to provide cover. 

If any of this information if inaccurate, then Shell only has to advise me accordingly and corrections will be published. 

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