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North Sea helicopter crash: Shell cancels all CHC flights in Norway

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Screen Shot 2016-04-20 at 13.50.03Written by Niamh Forrest – 03/05/2016 7:42 am

Oil major Shell has cancelled all flights to its two fields in the Norwegian Sea.

The company has taken the decision after 13 people were killed on a flight returning from Statoil’s Gullfaks B platform on Friday.

The move will affect journeys to its Draugen and Knarr fields.

It’s understood the operator has said it is “too early” at this stage to determine how long the decision will stay in place.

A spokesman for the company said:“Shell has with sadness followed the reports of the tragic event outside Bergen in Norway. Our thoughts and condolences go out to the families and colleagues of the victims. We are confident that every measure will be taken to reveal the cause of the accident and to ensure the safety of the people of our industry.

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Nigeria demands N884b compensation from Shell

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Akin Kuponiyi  

Screen Shot 2016-04-20 at 13.50.03President Muhammadu Buhari has authorised that the government of the Federal Republic of Nigeria and Attorney General of Federation and Minister for Justice alongside National Oil Spill Detection and Response Agency (NOSDRA) for the country  and on behalf of 350 communities in Delta and Bayelsa states affected by Bonga Oil spills of December 20,2011, to commence legal action against  Shell Nigeria Exploration and Production Company,

The country is  demanding for N884Billion as compensation for oil spillage that destroyed the affected communities.

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Shell gets go ahead for Draugen wells

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Screen Shot 2016-04-20 at 13.50.03Written by Phil Allan – 02/05/2016 12:20 pm

Shell has received consent to use two subsea wells on the Draugen field in the Norwegian Sea.

Norway’s Petroleum Safety Authority has given Shell consent to commission the last two wells, designated G2 and G3 after the company began its programme to drill four subsea wells on the field in 2013. The first two came on stream in 2014.

The PSA consent also covers underwater equipment, subsea pumps and equipment on board the Draugen facility linked to these wells.

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Shell completes sale of Dansk Fuels in Denmark

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Screen Shot 2016-04-20 at 13.50.03Written by Niamh Forrest – 02/05/2016 12:04 pm

Oil major Shell said it has completed the sale of Dansk Fuels in Denmark to Couche-Tard for $300million.

The company said Dansk Fuels comprises Shell’s retail, commercial fuels and commercial fleet and aviation business.

It will be owned by Circle K Denmark which was formerly Statoil Fuel and Retail, a subsidiary of Couche-Tard.

The move comes after Shell signed an agreement to divest the business in March last year.

The completion of the transaction follows regulatory approval from the European Commission.

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Shell’s blockbuster BG bid backfires as gas prices deflate

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Danny Fortson:    Published 1 May 2016

Nearly 300 staff gathered in the canteen of BG Group’s sprawling headquarters in Reading on Monday morning to hear what they had long been expecting: nearly all of them were being laid off or being forced to apply for new jobs.

Shell closed its blockbuster takeover of the gas giant in February. Huibert Vigeveno, a rising star within Shell charged with integrating the companies, announced that after an “office footprint review”, BG’s headquarters would shut.

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Profit fall leaves Shell struggling to justify BG deal

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Danny Fortson Published: 1 May 2016

Royal Dutch Shell is set to unveil a steep fall in profits this week, laying bare the challenge for chief executive Ben van Beurden to justify his £35bn takeover of rival BG.

Shell completed the blockbuster deal in February after investors voted it through. Despite counting six weeks of BG’s earnings, analysts expect Europe’s largest oil company to have earned just $1bn (£680m) in profits for the quarter. That compares with a surplus of $3.2bn for the same period a year ago.

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North Sea worker strikes loom as contracts tighten

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Jillian Ambrose: 1 MAY 2016

The North Sea sector could face the first wave of workers strikes in a generation as union tensions rise in response to longer hours and lower pay for the embattled workforce.

This weekend members of Unite are weighing up whether to accept tougher contract terms from Wood Group, one of the North Sea’s largest oilfield services firms, after the group met with unions on Friday.

A strike across Wood Group’s workforce could impact projects across the North Sea including decommissioning work on the giant Brent oilfield operated by oil giant Shell, where workers have already threatened to down tools over Wood Group’s plans for tougher contracts.

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Museums face ethics investigation over influence of sponsor BP

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Screen Shot 2016-04-20 at 13.50.03In May last year Shell was accused of putting pressure on the Science Museum to influence a climate change exhibition it was sponsoring. The charge was denied by the company and the museum but within six months the partnership had been scrapped.

The Museums Association is investigating claims that some of Britain’s most revered cultural institutions have broken its code of ethics in the way they dealt with one of their commercial sponsors, BP.

The move follows the release of internal documents seen by the Guardian that appear to show the British Museum, National Portrait Gallery and other institutions bending to accommodate the demands of the oil company.

In May last year Shell was accused of putting pressure on the Science Museum to influence a climate change exhibition it was sponsoring. The charge was denied by the company and the museum but within six months the partnership had been scrapped.

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Goodbye Marvin Odum

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Screen Shot 2016-02-24 at 17.16.30Marvin Odum, unconventional resources director and U.S. country chair for Royal Dutch Shell, left the company. He joined Shell as an engineer in 1982. Concurrent with his departure, and in a move that will simplify Shell’s structure, the Athabasca Oil Sands Project and the Scotford Upgrader in Canada will join the global Downstream organization under Downstream Director John Abbott.

In addition, the Shale Resources business will join the global Upstream organization under Upstream Director Andy Brown. As a result of these changes, the unconventional resources director position is eliminated.

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Shell To Hire 1,000 Professionals This Year At Bengaluru Centre

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by Ayushman Baruah: 28 April 2016

At a time when global oil prices are falling and the energy sector is going through macro-economic challenges, global oil & gas company Shell on Wednesday (27 April) announced the launch of its information technology (IT) centre in Bengaluru. The centre is expected to recruit close to 1,000 professionals by the end of 2016 and several thousand by 2020.

About 900 offers have already been made for the IT centre. Shell’s total headcount in India stands at 4,300 employees spread across its Projects & Technology and IT Centres based in Bengaluru, as well as their Business Operations Centre in Chennai.

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Shell to axe jobs as cost-cuts hit home

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Shell last week informed local staff that it was starting a round of job cuts, with a large portion of workers within the company asked to re-apply for their current positions.

While no fixed target has been set, it is estimated that about 250 jobs around Australia are likely to go as a result of the changes.

The round of job cuts follows Shell’s recent takeover last year of BG Group. The redundancies will remove many of the overlapping roles inherited through the takeover.

Shell had already flagged that it would axe about 2800 jobs worldwide as a result of the BG takeover, as well as a further 7000 around the globe as part of its response to the plunge in oil and gas prices.

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Shell to close BG office in Aberdeen this year with job cuts expected

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Shell to close BG office in Aberdeen this year with job cuts expected

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ROYAL Dutch Shell has announced plans to close the BG North Sea head office in Aberdeen where around 300 people work in a move which is expected to lead to further job cuts in the city.

The Anglo Dutch oil giant will run the enlarged North Sea Business formed by the £35bn takeover of BG from its office in the Tullos area of Aberdeen.

Led by chief executive Ben van Beurden, Shell said all 300 BG staff will relocate to Tullos initially. They will be able to apply for redundancy under a voluntary severance programme which is expected to result in an undisclosed number of jobs being cut.

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Shell expected to confirm today where North Sea HQ will be post BG takeover

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Shell expected to confirm today where North Sea HQ will be post BG takeover

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Written by Erikka Askeland – 25/04/2016 7:37 am

Oil giant Shell is expected to tell staff in Aberdeen today that its North Sea headquarters will be based at Tullos in the wake of its takeover of rival BG Group.

The firm, which completed its multi-billion pound mega-merger with BG in April, will move around 200 former BG staff to its existing premises in the south of the city from their base on Albyn Terrace.

The decision is set to see BG’s former offices – a trio of linked granite-built townhouses at the heart of Aberdeen’s west end – go up for grabs in a market where demand for offices is falling as a result of the oil price crash.

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Investors look beyond Big Oil’s worst quarter yet

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LONDON | BY KAROLIN SCHAPS AND RON BOUSSO: Sun Apr 24, 2016

The world’s top oil companies are set to report their worst quarterly results yet in the current downturn but a recent recovery in crude prices is raising hopes the market has bottomed out.

An ever intensifying oil supply glut took global prices to a near 13-year low of $27.10 a barrel on Jan. 20, exacerbating pressure on oil producers already grappling with a more than 70 percent slide in prices since mid-2014.

“The 1Q16 reporting period looks set to be even worse than what we thought was already an especially ugly 4Q15,” said Jason Gammel, equity analyst at Jefferies.

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Oil prices drop faster than companies can cut costs

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Bloomberg News: SATURDAY, APRIL 23, 2016

The world’s biggest oil companies, set to report their worst quarterly earnings in more than a decade, are finding that their cost-cutting efforts haven’t matched the decline in crude prices over the past two years.

While producers have been deferring projects, eliminating jobs and freezing salaries, the process will take three years to complete, according to Barclays oil sector analyst Lydia Rainforth. In the meantime, profits are being hammered.

“A lot of work still needs to be done on costs,” she said. “It’s a reflection of how much costs had piled up and how long a process this is.”

For producers from Royal Dutch Shell to Chevron, reeling under the threat of credit-rating downgrades, slashing costs is the surest way of protecting balance sheets. Still, reversing course is proving painful after $100 oil persuaded companies to pump money into expensive areas in search of new deposits, hire more people and rent rigs and services at record rates. Productivity suffered.

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The new oil order

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Apr 23rd 2016

FOR generations, oil and stability have gone hand in hand in Saudi Arabia. The puritanically conservative kingdom has used its oil wealth to buy loyalty at home and friends abroad. But since King Salman came to the throne last year, his 30-year-old son, Muhammad, has injected unpredictability into the Middle East.

Critics consider the deputy crown prince a hothead, whose dangerous obsession with Iran, Saudi Arabia’s rival, is feeding sectarianism and fraying relations with America. At home, though, the impetuousness of Muhammad bin Salman may be just what Saudi Arabia needs to start weaning itself off oil, the price of which has fallen sharply over the past 18 months. A big test comes on April 25th, when the prince is due to unveil the kingdom’s long-delayed “Vision” reform plan.

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Bulgaria anti-monopoly watchdog raids more oil firms in fuel inquiry

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Commodities | Fri Apr 22, 2016

Bulgaria’s anti-monopoly watchdog said it had raided the offices of Eco Petroleum, part of Hellenic Petroleum, and Shell Bulgaria, owned by Royal Dutch Shell, as part of an investigation into possible cartel agreements.

The inquiry follows complaints by Bulgarians over high fuel costs despite a plunge in global oil prices and a call by Prime Minister Boiko Borisov for the competition authority to hasten checks on the fuel sector.

“Employees of the Commission for Protection of Competition are carrying out surprise checks on site at the offices of Eco Bulgaria and Shell Bulgaria,” the commission said in a statement on Friday.

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Shell, Agip, Chevron tax evaders, Gov Dickson writes Buhari

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Okafor Ofiebor/Port Harcourt: 21 April 2016

The face-off between Bayelsa State government and multinational oil companies deepened on Thursday with Governor Henry Seriake Dickson, seeking the intervention of the Presidency over tax evasion, flagrant disregard of laws and non-compliance with the rules and regulations of the country.

A press statement from Bayelsa Govt House named the companies that evade tax as Shell Petroleum Company of Nigeria Limited (SPDC); Nigerian Agip Oil Company Limited (NAOC); Chevron Nigeria Limited (CNL); Consolidated Oil (CL); Conoil Producing; Brass LNG and Aiteo Energy.

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Shell eyes $700 million exit from Gabon – sources

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By Freya Berry and Ron Bousso

LONDON (Reuters) – Royal Dutch Shell <RDSa.L> is working on selling out of its onshore assets in Gabon, according to two sources familiar with the matter, seeking to refocus its African presence.

Bids are due in June for the fields, which one source estimated could be worth around $700 million (488.55 million pound). However the second person said that price indications were currently below Shell’s expectations and that no sale may occur.

“Shell continuously evaluates opportunities for our global portfolio in line with our business strategy,” a company spokesman said on Thursday.

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Shell defies order to halt production at Nigeria facility – officials

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YENAGOA, NIGERIA | BY TIFE OWOLABI: Wed Apr 20, 2016

Royal Dutch Shell has failed to halt production at the Gbaran Ubie oil and gas facility in southern Nigeria, contravening a court order for the site to be sealed and raising the prospect of legal action, state government officials said on Wednesday.

A Reuters reporter spoke to workers at the plant who also said production had continued.

A Shell (RDSa.L) spokesman declined to comment.

The facility, in the oil-rich southern Niger Delta region, supplies the Bonny liquefied natural gas (LNG) export terminal and also helps generate electricity, which is scarce in Africa’s top oil producer and most populous nation.

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Malabu Oil deal: EFCC quizzes SNEPCO boss over $1.092b settlement cash

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20 April 2016

The Economic and Financial Crimes Commission( EFCC) has quizzed the Managing Director of Shell Nigeria Exploration and Production Company Limited (SNEPCO), Mr. Bayo Bashir Ojulari over the controversial  Malabu oil block (OPL 245) deal.

The anti-graft agency is specifically seeking the whereabouts of $1,092 billion paid by SNEPCO and Nigeria Agip Exploration Limited (NAE) into an escrow account.

It was learnt that investigators were trying to determine last night whether the cash had been used  for the settlement of the dispute on the oil block or diverted elsewhere.

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Nick Goodway: Why do we pay Shell to extract our oil assets?

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By Nick Goodway: 19 April 2016

My eye was caught yesterday by a document from Royal Dutch Shell snappily entitled Report on Payments to Governments for 2015. (I know, I don’t lead a very exciting life.) This is one of the myriad new reports that corporates are forced to release each year in the interests of greater transparency and good governance.

But for once, alongside the hundreds of such reports I have binned, there was some interesting stuff here. In short, the report details how much Shell paid to each government in the countries in which it operates in terms of their share of production, royalties, taxes and fees.

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Britain paid Shell to keep its North Sea oil fields running

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Shell and Iberdrola have been found guilty of fraud and market manipulation in California’s energy market: MAURIZIO RELLINI/CORBIS

Screen Shot 2016-03-15 at 10.34.57Marcus Leroux: 19 April 2016

Britain was the only country where Royal Dutch Shell enjoyed a negative effective tax rate last year, according to a report released by the company.

While the second-largest oil group in the world paid billions to governments from Nigeria to Norway, the payments it received from the British government indicate the toll taken on Treasury coffers by the collapse in the price of oil.

Shell received a net $123 million (£86 million) from the UK government last year, largely because of changes to the tax system that entitled it to a rebate relating to its historic Brent oilfield.

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Botched Doha deal undermines OPEC credibility, oil prices tumble

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By REUTERSPUBLISHED: 18 April 2016

By Henning Gloystein

SINGAPORE, April 18 (Reuters) – Oil prices tumbled on Monday after a meeting by major exporters in Qatar collapsed without an agreement to freeze output, leaving the credibility of the OPEC producer cartel in tatters and the world awash with unwanted fuel.

Tensions between Saudi Arabia and Iran were blamed for the failure, which revived industry fears that major government-controlled producers will increase their battle for market share by offering ever-steeper discounts.

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Nigeria seals Shell’s Gbaran Ubie oil and gas facility on court order -statement

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Mon Apr 18, 2016 8:15pm GMT

YENAGOA, Nigeria, April 18 (Reuters) – A Nigerian state government has sealed the Gbaran Ubie oil and gas production facility owned by Royal Dutch Shell on court orders, it said in a statement on Monday.

“The Gbaran Ubie facility was developed by Shell… in Bayelsa State without a development permit,” the government, based in the Niger Delta, said.

(Reporting by Tife Owolabi; Writing by Ulf Laessing; editing by John Stonestreet)

© Thomson Reuters 2016 All rights reserved

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Nothing New About Shell Settling Fraud Cases

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From April 2016:

Shell guilty of energy fraud and market manipulation in the US

From August 2004:

Shell settles fraud case for $150M

Oil company agrees to pay SEC for overstating reserves, also settles market abuse case in Britain.

The settlements are not just for fraud but range all the way to complicity in murder.

New York Times: “Shell Settles Dumping Suit for $3 Million“: 9 February 1995

New York Times: “SHELL SETTLES ROYALTIES CASE FOR $33.5 MILLION“: 21 March 2002

Shell Oil Company Limestone Township $26 million settlement: December 2007

Plaintiffs win $66 million from Shell Oil after making the mistake of relying on Shell’s “honesty and integrity”: 17 May 2008

Houston Chronicle: Shell will pay millions to settle air pollution suit: 23 April 2009

Guardian: Shell agrees to pay compensation for execution of Saro-Wiwa: June 2009

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NIGERIA: MAJOR GAS FACILITY WON’T BE REPAIRED UNTIL MAY

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Screen Shot 2016-03-15 at 10.34.57BY CONOR GAFFEY ON 4/18/16 AT 12:32 PM

Power outages in Nigeria are likely to persist until May as oil and gas giant Shell struggles to repair a major facility damaged by militants.

Nigeria’s Vice President Yemi Osinbajo visited the Forcados Export Terminal in the southern Delta state over the weekend. The facility, which is run by a subsidiary of Royal Dutch Shell, known as the Shell Petroleum Development Corporation, was subject to an attack in February when an underwater pipeline was hit by an explosion.

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Shell says theft from its Nigerian oil pipeline network fell in 2015

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Business | Mon Apr 18, 2016 9:02am BST

Theft of crude oil from the pipeline network of Shell’s Nigerian subsidiary fell to 25,000 barrels per day (bpd) in 2015, the company said on Monday, roughly 32 percent less than the previous year.

The number of sabotage-related spills on the SPDC network also declined to 93 in 2015, compared with 139 the previous year, Shell said in its annual sustainability report.

It attributed the decrease to divestments in the Niger Delta and increased surveillance and security by the Nigerian government, but said theft and sabotage were still responsible for around 85 percent of spills from SPDC operations.

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Major Oil Exporters Fail to Agree on Production Freeze

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By STANLEY REED and ANDREW E. KRAMERA version of this article appears in print on April 18, 2016, on page B1 of the New York edition

DOHA, Qatar — Officials from 18 oil-producing nations failed on Sunday to reach a deal to freeze oil production at current levels.

The meeting of officials, representing most of the Organization of the Petroleum Exporting Countries as well as Russia, had been intended to calm the markets and convince them that the two leading oil exporters, Russia and Saudi Arabia, were cooperating. But with officials coming up short on Sunday, the meeting may end up being a blow to confidence that could send oil prices tumbling.

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Eyes on Doha

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By Ed Crooks: April 15, 2016

All eyes in the oil market this weekend will be on Sunday’s meeting in Doha, which will bring together leading producers including Russia and most – although perhaps not all – of the members of Opec. Expectations that the countries will agree to freeze production, encouraged this week by statements from Russian and Iraqi representatives, have helped drive Brent crude prices up more than 60 per cent from about $27 per barrel in January to around $44 today.  The heads of some of the world’s largest trading houses have concluded that for oil producers, the worst is probably now over.

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Shell’s UK boss says it will strike ‘innovative deals’ for its North Sea assets

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Written by Erikka Askeland – 15/04/2016 7:54 am

Oil giant Shell is running the rule over the potential sale of north Sea assets – but it is too early since its mega-merger with rival BG Group to have decided on a sale process.

But Paul Goodfellow, Shell’s upstream vice-president for the UK and Ireland, said the company may be looking at “innovative deals” like the sale of its Anasuria field.

Last year, Shell and its joint venture partner ExxonMobil struck a deal to sell its Anasuria cluster in the Central North Sea to a duo of Malaysia-based oil companies, Hibiscus Petroleum and Ping Petroleum, for close to £70million.

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John Donovan, Shell’s nightmare: MY EPIC FEUD WITH THE UNSCRUPULOUS OIL GIANT ROYAL DUTCH SHELL

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New ebook available globally, including: Amazon.com; Amazon.co.uk; Amazon.fr; Amazon.de; Amazon.nl; Amazon.com.au; Amazon.ca; Amazon.es; Amazon.it; Amazon.in

About: John Donovan, Shell’s nightmare

His ebook tells the truly extraordinary story of a series of battles in an epic feud between him and the oil giant Royal Dutch Shell. It all stemmed from the repeated theft of intellectual property by Shell.

Donovan was chairman of a sales promotion agency, Don Marketing, that devised spectacularly successful forecourt promotions for Shell on an international basis. Many involved budgets of several million dollars. A mutually beneficial relationship lasted for over a decade.

This was followed by two decades of acrimony involving six High Court actions, a County Court case and proceedings via the World Intellectual Property Organisation (WIPO).

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Buhari urged to stop work on Egina FPSO

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A Lawyer, John Owubokiri, has urged President Muhammadu Buhari to order contractors handling the construction of the Total’s Egina floating production, storage and offloading (FPSO) vessel to stop work on the platform until all the legal issues are resolved.

Owubokiri, who is a principal partner, Owubokiri & Co, said Buhari recognises the rule of law and due process, therefore, flagrant disrespect of the law by the owners of the Egina project should be dealt with to deter future occurrence.

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Shell’s UK boss says North Sea oil is prize worth fighting for

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Written by Phil Allan – 14/04/2016

The head of Shell’s UK upstream operation said the North Sea oil industry is a “prize worth fighting for” in the years to come, but said more still needs to be done to ensure the long-term future of the sector.

Paul Goodfellow said many positive steps have been taken but industry, the Oil and Gas Authority and Westminster and Holyrood governments needs to continue to work together to transform the basin into highly competitive province.

Goodfellow said: “There’s too much at stake not to make this work.”

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NWCAA alleges multiple failures by Shell Puget Sound Refinery in February 2015 chemical release

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“This incident sickened many people in the community, and people felt unsafe in their homes and at work,” said Mark Asmundson, Executive Director of the Northwest Clean Air Agency.

After a yearlong investigation, the Northwest Clean Air Agency is alleging Shell failed to follow shutdown and decontamination procedures while cleaning the refinery’s east flare system.

Shell’s actions led to a surge of wet, chemical-laden gases moving through the flare line and extinguishing the flare flame, allowing the release of unburned chemicals to the atmosphere. The purpose of the flare flame is to combust chemicals into less odorous and toxic forms. As a condition of its permit, Shell is required to maintain the flame if chemicals might be vented to the flare. The chemicals released included hydrogen sulfide, dimethyl sulfide, mercaptans and benzene.

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Shell CEO van Beurden sees a global carbon price as inevitable

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ABC.Net.Au: by Babs McHugh: 13 April 2016

The head of one of the world’s largest oil and gas companies says market forces will eventually result in a global price on carbon.

Royal Dutch Shell CEO Ben van Beurden made the call at the 18th International LNG Conference underway in Perth.

Mr van Beurden also championed the need for greater innovation in accessing new oil and gas reservoirs at acceptable costs, while acknowledging the tough position producers faced.

“Market conditions are pretty challenging,” he said.

“But at the same time new markets are opening up, like Thailand, Pakistan and even Poland.

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Air agency: Shell refinery emissions sickened many

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By KIMBERLY CAUVEL: 13 April 2016

ANACORTES — Harmful emissions from the Shell Puget Sound Refinery in February 2015 could have been avoided had the refinery followed protocols, the Northwest Clean Air Agency announced Tuesday.

A yearlong investigation suggests Shell failed to follow shutdown and decontamination procedures while cleaning the refinery’s east flare system, according to a news release from the regional air agency.

The refinery allegedly took shortcuts in shutting down and decontaminating its east flare system, leading to the release of chemicals on Feb. 20, 2015, that affected hundreds in La Conner and in the Swinomish Indian Tribal Community.

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Iran launches talks with Shell

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Seyed Mohsen Ghamsari, Executive Director for International Affairs at National Iranian Oil Company (NIOC) made the remarks saying “despite the initiation of negotiations, no final agreement has been reached yet.”

In response to a question about the amount of oil sales to Royal Dutch Shell Oil Industry Company in case of sealing a deal, the official estimated that grounds will be provided for selling oil in accordance with pre-sanctions period which amounted to 100 thousand barrels per day.

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What Would an Exit from Bonga South West/Aparo Mean for Shell?

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Screen Shot 2016-04-13 at 08.15.09by Andreas Exarheas: Rigzone Staff: Tuesday, April 12, 2016

In February 2016, Royal Dutch Shell plc announced in its fourth quarter 2015 financial statement that it was postponing the final investment decision (FID) on the Bonga South West/Aparo (BSWA) deep water project offshore Nigeria, in an effort to curtail spending amid the current low oil price environment. Shell’s decision to postpone the FID on BSWA comes after Shell Nigeria Exploration and Production Company (SNEPCo) announced last year that it was committed to the project. In February 2015, the company’s managing director Tony Attah denied reports that the energy firm had stopped the development due to the slump in oil price and confirmed that it was progressing the tender for engineering, procurement and construction contracts related to BSWA.

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Bearish Options Activity on Royal Dutch Shell Plc After Worse Fundamentals

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By Linda Rogers April 12, 2016

In today’s session Royal Dutch Shell Plc (RDSA) recorded an unusually high (474) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the July, 2016 put, expecting serious RDSA decrease. With 474 contracts traded and 11054 open interest for the Jul, 16 contract, it seems this is a quite bearish bet. The option with symbol: RDSA160715P00047500 closed last at: $2.15 or 15.7% down. The stock is down 0.40% or GBX 7 after the news, hitting GBX 1725 per share. About 1.84 million shares traded hands. Royal Dutch Shell Plc (LON:RDSA) has risen 7.31% since September 10, 2015 and is uptrending. It has outperformed by 2.65% the S&P500.

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Shell Could Save $4.5 Billion by Matching BP Productivity: Chart

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Screen Shot 2016-03-15 at 10.34.57By Rakteem Katakey: April 12, 2016

Royal Dutch Shell Plc could reduce operating costs by as much as $4.5 billion a year if its employees matched the productivity of BP Plc, according to Morgan Stanley.

Shell’s output per employee in oil and gas exploration and production was 26 percent lower than BP’s last year, meaning Europe’s biggest oil company has scope to cut about 9,000 jobs in that division, Morgan Stanley analysts including Martijn Rats wrote in a report dated April 8.

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Environmental group files lawsuit over ‘expired’ Shell Arctic oil permits

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Bob Weber / The Canadian Press: April 11, 2016

Environmentalists have asked a court to declare invalid a group of Arctic offshore energy exploration permits that are delaying the creation of Canada’s third national marine protected area.

On Monday, the World Wildlife Fund filed a lawsuit in Federal Court alleging that 30 permits held by Shell Canada at the eastern gate of the Northwest Passage lapsed decades ago.

“There’s no indication they’ve ever been renewed,” said Ian Miron, the group’s lawyer.

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Royal Dutch Shell plc: Reasons Behind Moody’s Downgrade

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By Micheal Kaufman on Apr 11, 2016

Moody’s Investor Service reduced Shell’s issuer rating and rating of its guaranteed debt from “Aa1” to “Aa2”, and affirmed company’s Prime-1 commercial paper. Both ratings were under review for a potential downgrade, which was initiated on January, 22, 2016. Since January, the firm expected that the global oil prices will remain weak over the medium term and hinted several downgrades in the upcoming few months.

Shell Finance Netherlands Bv, a subsidiary of Royal Dutch Shell – formed for the sole purpose of issuing debt – also had its issuer rating cut from “Aa1” to “Aa2”. Moreover, Shell’s US-based subsidiary, Shell Oil Company, also got its issuer rating cut from “Aa2” to “Aa3” and has been assigned a Negative outlook.

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Siemens, Mossack Fonseca and Shell

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By John Donovan

It’s interesting to note that there seem to be parallels between Siemens (mired in the Panama Papers scandal) and Shell.

A few years ago, Siemens was prosecuted for bribery, and some of their senior employees were jailed. It was suspected that some of the funds provided by Siemens for the bribes were kept by the Siemens executives involved, but lack of evidence prevented the executives involved from being prosecuted. 

The amounts involved in the Siemens cases were tiny in comparison with Shell’s OPL 245 payments, but were funnelled through Mossack Fonseca. 

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GE starts production on Shell’s Prelude risers, must withstand a 1-in-10,000-year cyclonic event

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Screen Shot 2016-02-17 at 08.47.47Written by Rita Brown – 11/04/2016 7:38 am

GE Oil & Gas today confirmed it had started production on four high pressure, high temperature dynamic flexible risers destined for Shell’s Prelude, the world’s largest offshore floating facility.

The firm is building them to survive a 1-in-10,000-year cyclonic event, according to the contract spec.

GE will complete the work at its facility in Newcastle, UK, where it has invested more than $21million to expand its production carousel capacity to accommodate the giant kit. They must also be able to withstand high pressures, high operating temperatures, the potential for cold shut-downs and rapid depressurisation.

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$200 Million Diverted To Italian Accounts In Malabu Scandal, Italian Sources Say

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An Italian oil company operating in Nigeria, Eni, has been found to have ‘diverted’ 200 million USD into Italy, according to Italian sources. According to Italian authorities the diversion is connected to the 2011 Malabu oil scandal involving Shell, Eni, and the Nigerian government. 

It would be recalled that OPL 245, one of the richest oil blocs in Africa, was awarded to Malabu Oil and Gas Ltd. in 1998 by former Minister of Petroleum Dan Etete from the Sani Abacha administration. The deal was authorized by former Attorney General Mohammed Adoke and former Minister for Petroleum Resources Diezani Alison-Madueke. The two have been investigated by the Economic and Financial Crimes Commission (EFCC) but have been on the run. 

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Lower oil without higher growth

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Screen Shot 2016-03-28 at 11.17.16By Ed Crooks: April 8, 2016

The failure of falling oil prices to give much of a boost to global growth has been one of the big issues in the world economy this year. The FT’s Chris Giles gave a magisterial overview of why oil has been the shot in the arm that missed its target, although he raised the more cheerful possibility that the stimulus may simply be deferred until next year.

The correlation between oil prices and share prices has remained in full effect, even though an unexpected drop in US crude inventories boosted oil for a while. Brent crude began Friday at about $40 per barrel, up 48 per cent from its low point in January, but still down 65 per cent from its peak in June 2014.

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Exxon and Shell Double Down to Defeat Climate Change Legislation

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Screen Shot 2016-04-08 at 15.55.29Nika Knight, Common Dreams: April 8, 2016

The dark channels through which corporations influence legislation are notoriously hard to trace, but a new detailed report estimates that the world’s largest fossil fuel companies are spending upwards of $500 million per year to obstruct climate laws.

Published Thursday by the UK-based non-profit InfluenceMap, the report looked at two fossil fuel giants (ExxonMobil and Royal Dutch Shell) and three trade lobbying groups, discovering that all together the five companies spend $114 million dollars a year to defeat climate change legislation.

More significantly, InfluenceMap says, “Extrapolated over the entire fossil fuel and other industrial sectors beyond, it is not hard to consider that this obstructive climate policy lobbying spending may be in the order of $500m annually.”

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Shell under pressure to reduce spending

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Markets | Fri Apr 8, 2016 3:05am EDT

By Ron Bousso

LONDON, April 8 Royal Dutch Shell is under pressure from shareholders to cut annual spending below $30 billion after buying BG Group to ensure it can maintain its dividend given the slow oil price recovery.

Shell and other large oil companies slashed budgets, scrapped huge projects and cut tens of thousands of jobs last year in the face of a slump in oil prices from a June 2014 peak of nearly $116 a barrel to below $40.

Shell reduced spending by $8.4 billion to $28.9 billion last year and for the first time in more than three decades global capital spending in the oil and gas industry, known as capex, is set to fall for a second year in a row.

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Shell Accused of Fraud

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April 8, 2016

SAN JUAN, Puerto Rico — A US District Judge overseeing a class-action lawsuit against Puerto Rico Electric Power Authority (PREPA) and the world’s largest fuel oil suppliers for perpetuating an extensive fuel oil fraud has upheld claims that the defendants violated the Racketeer Influenced and Corrupt Organizations Act (RICO) and denied motions to dismiss the suit.

According to Hagens Berman, a consumer-rights class-action law firm, the order from Judge Jay Garcia-Gregory on Tuesday denied motions to dismiss from the majority of the suit’s 20 defendants, allowing RICO claims to continue against PREPA, Shell Oil, Petrobras, Alchem and various other laboratories and fuel oil suppliers.

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