Royal Dutch Shell Plc  .com Rotating Header Image

Posts under ‘Bill Campbell’

Project Prelude – A case study in the generation of real material debt

Screen Shot 2016-04-17 at 09.18.01

Comment By Bill Campbell (Retired HSE Group Auditor Royal Dutch Shell International) on the article published in The Australian: “Shell chief Ben van Beurden backs FLNG program

Interesting use of terminology by BvB, real material cash, what other type is there rather than funny money.

Prelude dumped from super star gamechanger status to important tool, an aspirin rather than a panacea for all ills, has certainly generated, and it appears will continue to generate, something of a debt mountain for RDS. $15 billion and counting has been allocated to finance the venture outflowing since at least 2007/8 at commencement of conceptual and then detailed design. I may be wrong, but I thought the production start date was given at the time when the first metal was cut in the yards in 2010, as 2016 – now it will be a least 10 years till 2018 before the project will start generating revenue. Our esteemed contributor London Lad, who knows a thing or three about project economics, will confirm, if he feels so inclined, that the breakeven point in any project is determined by how quickly capital spending is halted and operational revenue creation is started. The viability of the project per se, as to whether it will ever add value or be a financial millstone, is determined when production eventually starts by the rate of return of the capital invested, and here BvB hopes for real material cash, and lots of it, and hopefully by 2018 the cash will start to flow. Anybody guess how long it will take for this Project to breakeven?

read more

Musings about the OPL 245 Shell/ENI corruption scandal and the sinking confidence in Prelude

Screen Shot 2016-04-13 at 20.14.48

I would have thought that Simon Henry’s position as CFO should now be untenable, in view of the apparent lack of effective financial governance in Nigeria while he was CFO. 

By John Donovan

A large number of press articles have appeared recently mentioning Ben van Beurden. 

Since these articles are presumably fed to the press by Shell’s PR team, and Shell is not a one-man company, I checked to see whether other Shell directors have appeared recently in press releases.

The results are somewhat curious. For example, searching for Matthias Bichsel on Google News shows that articles were published about him at least weekly until October last year, but the articles then stopped abruptly. References to Simon Henry seem to have dried up a few weeks ago – until mid-March there were articles on Henry on an almost daily basis, but recently there has been nothing. Harry Brekelmans seems to have had a low profile since his appointment, so it is harder to see whether any change has occurred. Andy Brown has almost as many press articles as Ben van Beurden. 

read more

ABB wins five-year Shell contract for Prelude FLNG

Screen Shot 2016-03-24 at 08.26.24

Stuart McKinnon – The West Australian on March 24, 2016

The Malaga factory of Swiss multinational engineering giant ABB will be the focal point for a five-year contract to provide services and equipment to Shell’s Prelude floating LNG facility off the Kimberley coast.

The Shell order includes the delivery of motors, generators, variable speed drives and low-voltage switchgear and guarantees service and lifecycle management of the electrical equipment as well as service and support for motors from third-party vendors.

read more

Where does the cancellation of Browse and Masela leave Prelude?

Screen Shot 2016-03-23 at 12.49.10

Screen Shot 2016-03-23 at 12.53.14From a Regular Contributor

Cancellation of both the Browse and Masela FLNG developments on the same day suggests that the issues about which Bill Campbell has warned may finally have won the day. 

If so, this is a huge climbdown for Shell, with several billion dollars in probable write-offs. 

It’s perhaps not surprising, given the plethora of warnings from technical sources that there were serious risks involved. 

Could Prelude be next to be axed? Parking a multi-billion dollar vessel in cyclone alley for 20 years never seemed like the most appropriate use of the pension funds invested in Shell…

read more

Screen Shot 2015-09-03 at 07.48.11

Screen Shot 2015-11-04 at 07.47.53

Screen Shot 2015-11-04 at 07.53.22

Screen Shot 2015-11-04 at 07.57.03Angela Macdonald-Smith: November 4, 2015

Royal Dutch Shell remains unequivocally bullish on prospects for liquefied natural gas despite the current market glut, pointing to several options for new supply projects after its planned $US70 billion ($97 billion) takeover of BG Group and plenty of new markets opening up around the world.

“The fundamentals of this market look as robust now as in the past to us,” chief financial officer Simon Henry told investors overnight Australian time, spelling out Shell’s expectation that global LNG demand will expand at 5 per cent a year to 2030, only modestly lower than the 8 per cent annual growth seen since 2000.

read more

Shell keeps Prelude under wraps

Screen Shot 2015-10-13 at 23.03.07

Screen Shot 2015-10-13 at 23.05.10

Screen Shot 2015-10-13 at 23.09.25The Anglo-Dutch giant has never disclosed Prelude’s capital cost or start-up date

Peter Klinger: October 13, 2015

Just a year out from market expectations of first gas, Royal Dutch Shell is giving nothing away about the pace of progress at its revolutionary Prelude floating LNG operation.

Shell has sent out its regular update of the mega-project, which comprises construction of the industry-changing floating processing plant in Samsung’s Geoje shipyard in South Korea and a gas-condensate well and subsea pipeline network in the Browse Basin off the Kimberley.

Shell’s update said the second-last module had been installed on the Prelude floater, while in the Browse Basin the focus was on installing flow lines and pipeline end terminations.

read more

World’s Largest Turret Mooring Ready for Prelude

Screen Shot 2015-07-06 at 07.46.28

By Wendy Laursen 2015-07-05 

Drydocks World has marked a major milestone by completing the world’s largest turret mooring system.

At almost 100 meters high, weighing over 11,000 tons and with a diameter of 26 meters, the turret will ensure Shell’s Prelude floating liquefied natural gas (FLNG) facility can operate safely in the most extreme weather conditions. 

The FLNG will be stationed in the Prelude gas field off the northwest coast of Australia. It will be Shell’s first FLNG deployment. The technology allows for the production, liquefaction, storage and transfer of LNG at sea, as well as the ability to process and export liquefied petroleum gas (LPG) and condensate.

read more

WA inquiry shines spotlight on floating LNG safety fears

Screen Shot 2015-05-08 at 13.33.42

Article by Angela Macdonald-Smith published by The Sydney Morning Herald: 8 May 2015

WA inquiry shines spotlight on floating LNG safety fears

Screen Shot 2015-05-08 at 13.31.45

Royal Dutch Shell and Woodside Petroleum have insisted that workers to be stationed on vast floating liquefied natural gas plants far off the Western Australian coast will be safe despite serious concerns having been raised in a parliamentary inquiry that they won’t be evacuated even for severe tropical cyclones.

A WA parliamentary committee examining the safety of floating LNG highlighted fears that workers would be thrown around within their accommodation modules during cyclones and could experience psychological stress at being unable to leave the vessel.

read more

The Case against Malcolm Brinded CBE

Email Dated 4 March 2015 from Mr Bill Campbell, Retired HSE Group Auditor, Shell International, to Mr Billy Gordon, a senior officer of Police Scotland

The Case against Malcolm Brinded CBE: 

Dear Mr Gordon

Firstly, I would like to thank you for your continual support especially over the period when the Fiscal Anne Currie was carrying out her investigation into the conduct of Shell and HSE officials (2009 – 2011), Appendix C of the attached refers. If you check your files you will bring to mind that early in 2012, I sent a joint communication copied to you and the Royal Dutch Chairman (RDS) Jorma Ollila and his Legal Counsel Michiel Brandjes. We discussed in some detail the contents of a conversation that took place shortly after Shell had issued a press release (Appendix A) with a complete denial of the claims made both on BBC Scotland TV and the oil and gas industry trade Magazine Upstream. As a result of this communication, and by April 2012 ,Malcolm Brinded was released from the employ of RDS, his release initiated by his employer. For the record, as you are aware I was not allowed to come to Aberdeen to make a statement or to convey the many pages of evidence in what is a complex business. Acting to the instruction of the Fiscal Anne Currie the evidence was passed by Grampian police to her.

read more

Shell criticised after Brent Delta worker hurt by flying cylinder

Screen Shot 2015-02-12 at 07.34.47From a BBC News article published 11 February 2015

Oil firm Shell has been criticised after an offshore worker was seriously injured when a compressed gas cylinder flew through the air and hit him.

The incident happened on the Brent Delta platform in the North Sea on 10 November.

The Health and Safety Executive (HSE) said Shell did not have a safe system of work, and issued the company with a prohibition notice.

Shell said action had been taken to address the issues raised by the HSE.

RELATED BBC NEWS ARTICLE PUBLISHED 14 June 2006

Shell ‘ignored accident warning’

Oil giant Shell has been accused of operating platforms in the North Sea at dangerously high risk levels.

Former senior manager Bill Campbell, who led a safety review, claimed the company ignored his warning in 1999 that an accident was bound to happen.

read more

Proof Errant Shell employees can end up in jail 

Screen Shot 2015-01-16 at 12.36.53By John Donovan

Shell employees can potentially end up financially destitute or in jail for acts of negligence, for lying or falsifying records on behalf of Shell, or when giving misleading evidence on behalf of Shell in a court case.

The news story below – Oil Worker Faces Stiff Penalties After Airport Spill – comes after years of claims from Shell senior management about the top priority it gives to safety issues.

Shell appointed a safety Czar in July 2007. 

In 2008, it was discovered that even the life boats on a Shell North Sea Oil rig were unseaworthy.

read more

Rail chaos at Finsbury Park: Trusting ex Shell executives to run a railway network?

Screen Shot 2014-12-28 at 13.14.22

(THE ABOVE SCREENSHOT IS FROM AN ARTICLE IN THE INDEPENDENT PUBLISHED SUNDAY 28 DEC 2014)

Screen Shot 2014-08-28 at 13.22.02ARTICLE BY BILL CAMPBELL, RETIRED HSE GROUP AUDITOR, SHELL INTERNATIONAL

Could you really trust ex Shell executives to run a railway network?

In the usual manner *TFA Malcolm the Tank Engine arranged for his apprentice Marc Carne to take over as CEO of Network Rail, but like his disciples Bjorn Berget, Chris Finlayson, Gregory P Hill, dear Marc is a follower, not a leader, how otherwise would TFA Brinded have recruited them as his obedient servants in the first place.

Outside the protected arena of Shell, and in the public domain, we sense their true worth.

read more

%d bloggers like this: