Royal Dutch Shell Plc  .com Rotating Header Image

Posts under ‘Kashagan’

Kashagan oil field allegations ignored by Shell exec Andy Brown?

screen-shot-2016-12-03-at-22-48-18

By John Donovan

Printed below are extracts from a communication received from a Shell Civil Engineer who, until recently, worked on the construction of the ill-fated Kashagan oil field.

He says his dire warnings in regard to construction issues were escalated to Shell top management, including Andy Brown, but were ignored.

He has also raised the subject of Shell depriving sacked workers tax breaks on redundancy pay. A policy he describes as theft.

The same source supplied related, apparently authentic, Shell emails. read more

Kazakh President Says Partners in Shell Oil Field Face Tax Claim

screen-shot-2016-11-24-at-16-15-09

screen-shot-2016-11-24-at-16-16-43

screen-shot-2016-11-24-at-16-21-04

Nariman Gizitdinov and Torrey Clark: November 24, 2016 — 6:42 AM EST

Kazakhstan’s authorities are looking at whether the Karachaganak oil and gas venture, which includes Royal Dutch Shell Plc and Eni SpA, has unpaid taxes.

“The tax authorities have tax issues — they didn’t pay,” President Nursultan Nazarbayev said in an interview on Tuesday in Astana, without elaborating. He also confirmed the government is now seeking to change how revenue from the field is shared with the companies, which is allowed by the terms of the contract. read more

Lament for Royal Dutch Shell

screen-shot-2016-10-14-at-23-00-16

Kashagan AKA “Cash All Gone”

Forgot the initial cost estimate, probably around $8-10 billion. Now 10+ years too late and ballooned to $50 billionMost normal companies would have gone bust long ago.

Shell inherited some beauties from the boys of the roaring 90s. I hope someone will write a book one day on this era. 

Reserve crisis, Pearl, Sakhalin, Kashagan, Alaska, tarsands, and I must have forgotten a few. Repeated over-promise and under-delivery. All many billions over budget, extreme overruns in startup, loss in AAA status, removal of operational and technical expertise. I find the silence on Prelude ominous. Probably goes the same way as the others. read more

Why Shell’s $73 Billion Merger Could be Cheating Dividend Investors

Screen Shot 2015-05-20 at 08.28.38

Screen Shot 2015-05-22 at 10.03.52

By Adam GalasMay 21, 2015

Screen Shot 2015-05-22 at 10.05.30

Royal Dutch Shell‘s (NYSE: RDS-A  ) $73 billion buyout of BG Group (NASDAQOTH: BRGYY  ) would be the second-largest oil merger in history, but long-term Shell investors should be asking whether the company overpaid. In examining the terms of the deal, and what Shell plans to do with BG’s assets, I think it becomes evident that some skepticism of this deal is warranted. 

Terms of the deal
BG stockholders will receive .4454 shares of Shell class B shares plus $5.94 per share in cash for each share of BG stock. The $73 billion price tag represents a 52% premium for BG Group, and if the deal is approved BG shareholders would own 19% of Shell when the merger is completed in 2016. 
read more

Why Shell May Get Less Than It Bargained For In BG Deal

Screen Shot 2015-05-20 at 08.44.01

Screen Shot 2015-05-20 at 08.44.44

Screen Shot 2015-05-10 at 22.33.15By Andy TullyPosted on Tue, 19 May 2015 

Royal Dutch Shell’s $70 billion purchase of BG Group may not be as attractive as it once seemed.

According to BG’s 2014 annual report, if British-based BG were to be taken over by another company, the government of Kazakhstan would have the right to buy BG’s 29.25 percent share in a valuable Kazakh gas field, which so far has represented some 15 percent of the company’s total production and 9 percent of the $19 billion in revenue it made last year. read more

Shell Deal Puts BG Gas Holding at Risk

Screen Shot 2015-05-15 at 08.07.26

Shell Deal Puts BG Gas Holding at Risk

Screen Shot 2015-05-17 at 22.56.23

By SELINA WILLIAMS: May 17, 2015 

LONDON—Buried deep in BG PLC’s annual report is a little-noticed risk for its $70 billion merger with Royal Dutch Shell PLC: The deal could cost Shell a huge Kazakhstan gas field.

Screen Shot 2015-05-17 at 22.57.34

Screen Shot 2015-05-17 at 22.58.22

SOURCE

Shell Chief Visits China to Win Backing for $70 Billion BG Deal

Screen Shot 2015-05-06 at 11.10.33

Screen Shot 2015-05-07 at 07.59.01Article by Rakteem Katakey published 6 May 2015 by Bloomberg.com

The biggest obstacle to Royal Dutch Shell Plc’s $70 billion offer for BG Group Plc probably lies in China.

Shell Chief Executive Officer Ben Van Beurden visits the country this week to convince officials that the combination of two large oil and gas producers poses little risk for the world’s biggest energy importer.

He’s not certain to succeed given the clout the enlarged company will have in the global market for liquefied natural gas, according to Gordon Kwan, Hong Kong-based head of regional oil and gas research at Nomura International. read more

Landmark Deal Curbs Flaring Pollution

Screen Shot 2015-04-17 at 17.16.50

Top oil-producing nations and companies pledge to eliminate the waste of natural gas that also exacerbates global warming

April 17, 2015 |By Lisa Friedman and ClimateWire

Top oil-producing nations, including the Russian Federation, Kazakhstan and Angola, as well as Royal Dutch Shell PLC and other companies say they will stop flaring natural gas by 2030 as part of a landmark agreement with the World Bank.

The deal was unveiled this morning during the World Bank’s Spring Meetings, where leaders said the voluntary agreement will curb 40 percent of the global gas flaring that results in 300 million tons of carbon dioxide emissions annually.

“Gas flaring is a visual reminder that we are wastefully sending CO2 into the atmosphere,” said World Bank President Jim Yong Kim in a statement. “Together we can take concrete action to end flaring and to use this valuable natural resource to light the darkness for those without electricity.” read more

Kashagan to Start Production in 2017, Says Royal Dutch Shell Report

Screen Shot 2015-04-13 at 08.33.06

BY MICHELLE WITTE in BUSINESS on 13 APRIL

Screen Shot 2015-04-13 at 08.42.09

ASTANA – Production at Kazakhstan’s giant Kashagan offshore oil field is expected to restart in 2017, Royal Dutch Shell stated in its 2014 annual report.

“After the start of production from the Kashagan field in September 2013, operations had to be stopped in October 2013 due to gas leaks from the sour gas pipeline. Following investigations, it has been decided that both the oil and the gas pipeline will be replaced. Replacement activities are ongoing, with production expected to restart in 2017,” page 27 of the annual report, released on March 12, said.

After sour gas leaks forced production to halt soon after it began in late 2013 – already years behind the original schedule – predictions as to when the project would actually produce have been repeatedly made and then pushed back, and even in late January of this year, Energy Minister Vladimir Shkolnik was announcing that Kashagain would come online in late 2016. read more

Kashagan oil production to resume in 2017 – Shell

Screen Shot 2015-01-29 at 13.58.27

London, 13 March 2015

Screen Shot 2014-10-30 at 09.22.43(Reuters) – Production from Kazakhstan’s giant Kashagan oilfield is expected to resume in 2017, more than three years after being suspended due to a pipeline leak, stake holder Royal Dutch Shell said.

Operations at the major field, expected to reach production of 300,000 barrels of oil equivalent, started in September 2013 and were halted a month later due to gas leaks from the sour gas pipeline.

In its annual report on Thursday, Shell said “replacement activities are ongoing, with production expected to restart in 2017.”

Italian oil service company Saipem said last month it had won a contract to lay the replacement pipelines at Kashagan worth around $1.8 billion. It said it planned to finish the work by the end of 2016. read more

SEC continuing to scrutinise Shell’s claimed oil reserves

Screen Shot 2015-02-05 at 15.06.08By John Donovan

A letter emailed to Royal Dutch Shell Plc Chief Executive Officer, Ben van Beurden, on 23 Oct 2014, from the U.S. Securities & Exchange Commission, asked why Shell had omitted to supply in a Form 20-F filing, figures for Shell’s share of Kashagan proved undeveloped reserves.

Shell’s partners in the much troubled Kashagan oil field consortium – years behind schedule and billions over budget – include Eni, KazMunayGas, Total, ExxonMobil, China National Petroleum Corporation and Inpex. The project is known in the oil industry as “Cash All Gone”. read more

Oil Price Slump

Screen Shot 2014-10-16 at 12.52.57

By John Donovan

I have already highlighted the recent wishful prediction by Shell CEO Ben van Beurden that oil will return to “very robust” pricing in the long-term.

We have all witnessed the subsequent slump in oil prices.

Some extracts from a current Bloomberg article:

The global crash in crude prices is reverberating through the oil and gas industry, pressuring producers to curtail investment to protect profits and avoid cuts to dividend payments.

Exxon Mobil Corp., Royal Dutch Shell Plc and Total SA are already paring back as new investment fails to yield positive returns. read more

%d bloggers like this: