Royal Dutch Shell plc .com Rotating Header Image

Posts under ‘Shell’

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

Screen Shot 2016-04-20 at 07.41.41

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.

read more

Update from NAM on Shell/Exxon induced Dutch Earthquakes

Screen Shot 2016-04-19 at 20.31.49Update from NAM on Shell/Exxon induced Dutch Earthquakes

By John Donovan: 19 April 2016

Printed below in italics is a Google translation of information published in Dutch today by NAM, the Shell/Exxon Joint Venture company.

It is about the earthquakes inadvertently generated by NAM gas production activity in and around the Groningen Gas field in the Netherlands.

The damage arising from the earthquakes, which are expected to increase in intensity, will cost untold billions to deal with.

Maintaining current production level of 27 billion m3

On April 19th NAM published its proposal for future gas production from the Groningen gas field. It is the first step in a stepwise decision-making process that should lead before October 1, 2016 to a final government decision on gas production from the Groningen gas field. Given the complexity and societal concern about the earthquake record, the Minister of Economic Affairs has decided on extensive consultation with authorities, experts and residents for gas production decision.

read more

The caustic views of Sir Henri Deterding about lawyers

Screen Shot 2016-04-19 at 20.15.48

Screen Shot 2016-03-15 at 10.34.57By John Donovan

Today came news that Shell is slashing its panel of international law firms by 97%.

It therefore seems appropriate to reflect on the views about lawyers expressed by the extraordinary Dutchman most responsible for building Royal Dutch Shell into a global business: Sir Henri Deterding.

For some reason, although he was the undisputed head of the Royal Dutch Shell Group for almost 40 years, and said to be The Most Powerful Man in the World, his name now seems verboten at Shell. 

read more

Exclusive: How ChemChina tried to gatecrash Shell’s BG mega-deal

Screen Shot 2016-04-19 at 19.42.41

Screen Shot 2016-04-19 at 19.44.25

Screen Shot 2016-03-15 at 10.28.52LONDON | BY DMITRY ZHDANNIKOV, FREYA BERRY AND RON BOUSSO: Business | Tue Apr 19, 2016

Chemical giant ChemChina approached BG Group with a possible bid late last year, just as Royal Dutch Shell was preparing to close a $52 billion deal to buy the British energy company, seven banking and industry sources with knowledge of the matter said.

Working with investment bank HSBC (HSBA.L), China’s most acquisitive company of the past year flew a delegation to Britain in December and approached BG Chairman Andrew Gould with plans for a full cash bid, two sources close to ChemChina said.

Shell and HSBC declined to comment. ChemChina did not immediately respond to requests for comment. Reuters could not reach Gould for comment.

That trip was eight months after Shell announced the energy sector’s largest deal in a decade and just weeks before the BG purchase received final anti-trust and shareholder clearances.

read more

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

Screen Shot 2016-04-19 at 19.25.00

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.

read more

Shell slashes external lawyers

Screen Shot 2016-04-19 at 14.31.33

Shell slashes global panel from 11 to six post-BG merger

Shell scraps 97 per cent of global panel

On the final letter received from Simmons & Simmons before they retreated from the melee, we ended up with someone too timid to even disclose their name. Weren’t they supposed to frighten us?

19 April 2016

Simmons & Simmons is one of the law firms given the boot by Shell.

I have no idea if this is anything to do with my correspondence with Simmons & Simmons a while back.

They were brought in by Shell, no doubt at great cost, to fend off our applications to Shell under the Data Protection Action 1998.

The information we were obtaining was causing immense damage to Shell. For example, we found out from Shell internal communications about the cloak and dagger activity directed towards us by Shell Corporate Affairs Security.   

read more

Britain paid Shell to keep its North Sea oil fields running

Screen Shot 2016-04-19 at 09.19.23

Screen Shot 2016-04-19 at 09.20.23

Screen Shot 2016-04-19 at 09.23.08

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.

read more

Shell moving some jobs from New Orleans to Houston

Screen Shot 2016-04-18 at 22.33.06

By Jennifer Larino, NOLA.com | The Times-Picayune: 18 APRIL 2016

Shell will relocate some jobs from New Orleans to Houston as it moves forward with plans to cut its global workforce by 10,000 employees and contractors. The company started cutting jobs last year in response to low oil prices.

Details are sparse on how the global cuts affect the roughly 1,900 workers based in One Shell Square in downtown New Orleans. Shell says it does not provide layoff counts by region. Workers close to the situation have reported that jobs may be moving to Houston in addition to cuts. They asked not to be named to protect their jobs.

read more

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

Screen Shot 2016-04-18 at 22.17.49

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

read more

John Donovan, Shell’s Nightmare: Secret Litigation Settlements

Screen Shot 2016-04-18 at 16.11.07

By John Donovan

I published an article earlier today listing a number of settlements that Shell has made in various litigation claims ranging from fraud to complicity in murder. 

Shell’s settlement of my first three High Court claims against the company were all shrouded in secrecy. 

See: High Court papers unveil ‘secret’ Shell writ losses.” 

The same applied in respect of three further High Court actions, all settled secretly by Shell, including all my legal costs. 

Screen Shot 2016-04-19 at 23.20.39Extract from my most recent ebook “John Donovan, Shell’s nightmare”:

read more

Nothing New About Shell Settling Fraud Cases

Screen Shot 2016-04-18 at 15.08.59

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

read more

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

Screen Shot 2016-04-18 at 14.16.55

Screen Shot 2016-04-18 at 14.18.40

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.

read more

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

Screen Shot 2016-04-18 at 14.12.45

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.

read more

Shell’s divi dominance underlines yield conundrum

Screen Shot 2016-04-18 at 08.57.37

Screen Shot 2016-04-18 at 09.09.23

By Taha Lokhandwala: 18 April 2016

According to Capita UK Dividend Monitor, Shell will account for £1 in every £7.50 paid out in UK dividends this year, up from £1 in every £10 last year.

Screen Shot 2016-04-18 at 09.07.31

FULL FT ARTICLE

Shell and Scottish Power guilty of energy fraud and market manipulation in the US

Screen Shot 2016-04-18 at 00.48.31

By Alex Brummer For Daily Mail, In San Francisco

Shell and Iberdrola-owned Scottish Power have been found guilty of fraud and market manipulation which led to power blackouts in the San Francisco bay area.

The finding by a Federal Energy Regulation Commission (FERC) judge alleges that Shell and Iberdrola made £809million of illegal profits which may now have to be repaid to the citizens of California.

Evidence presented during the hearings says that energy traders at Shell and Iberdrola used similar tactics to the collapsed energy firm Enron to drive up the prices which Californian residents had to pay on their long-term contracts.

As a result Shell received £548million in excessive profits and Iberdrola £261million. At the time Scottish Power, which has previously won Money Mail’s Wooden Spoon Award for poor customer service, was a quoted UK company and owner of PPM Energy in California.

It was heavy losses in the US which weakened the Scottish firm and led to it being sold to the Spanish power giant Iberdrola in 2007.

read more

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

Firms overcharged Californians $1.1 billion during energy crisis, judge says

Screen Shot 2016-04-16 at 09.06.47By Rob Nikolewski: April 15, 2016

An administrative law judge in Washington D.C. slammed two energy companies, saying they overcharged California consumers for long-term contracts during the state’s energy crisis of 2000-2001, with a tab exceeding $1.1 billion, including interest.

“The public was clearly, palpably, seriously harmed by the energy crisis,” said Federal Energy Regulatory Commission Judge Steven A. Glazer in a 219-page ruling released late Wednesday that charged Shell Energy North America and Iberdrola Renewables of gouging the state.

read more

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

Screen Shot 2016-04-15 at 13.24.47

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.

read more

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

Screen Shot 2016-04-20 at 21.02.41

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).

read more

Why Now May Be The Time To Sell Royal Dutch Shell Plc

Screen Shot 2016-03-24 at 14.55.55

Screen Shot 2016-04-14 at 19.57.04

By Royston Wild : The Motley Fool – Thursday, 14 April, 2016

Despite my repeated warnings of impending doom, share prices of many of the Footie’s commodity and retail giants have been carried higher again against a backcloth of giddy investor appetite.

Diversified commodities play Anglo American (LSE: AAL) has seen its share price explode 160% during the past three months, while oil giant Shell (LSE: RDSB) has enjoyed a 31% rise. Grocery house Tesco (LSE: TSCO) has seen its share value advance by a more modest 7% during the period.

But a recovery from January’s multi-year lows does not suggest that these stocks are on the cusp of a stunning turnaround. As legendary economist John Maynard Keynes’ famously pronounced: “the market can stay irrational longer than you can stay solvent.”

read more

Shell Australia chairman Smith urges LNG industry to drop ego and collaborate

Screen Shot 2016-04-14 at 18.20.22

Angela Macdonald-SmithEnergy Reporter: 15 April 2016

Shell Australia chairman Andrew Smith is set to call on LNG industry leaders to drop their egos and get serious about collaboration to reduce costs, deliver better returns and improve competitiveness.

“We must put collaboration ahead of our industry’s natural desire to immortalise our own activities in concrete and steel,” Mr Smith will tell the LNG18 conference in Perth on Friday.

“Australia’s LNG industry will deliver greater economic value and better international competitiveness when we get better at the sharing of infrastructure on commercial terms.”

read more

Carbon capture: Collaboration needed says Shell head

Screen Shot 2016-04-14 at 18.02.53

By John McManus: BBC News: 14 April 2016

The head of energy giant Shell’s UK and Ireland operations has said the UK government should have continued to support a scheme to develop carbon capture technology.

The technology – to store carbon emissions from fossil fuels underground – was being developed at Peterhead power station with the help of Shell.

Chancellor George Osborne cancelled the competition in his Autumn Statement.

Shell’s Paul Goodfellow said the technology needed more development.

read more

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

Screen Shot 2016-04-14 at 13.53.52

Screen Shot 2016-03-15 at 10.34.57

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.”

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

Enthusiasm cools for Prelude FLNG

Screen Shot 2016-04-13 at 09.12.09

Chief executive Ben van Beurden said Prelude, Shell’s first attempt at FLNG, should generate “real material cash” in 2018.

But he steered clear of disclosing the construction progress and when the floater would leave its South Korean shipyard for the Browse Basin.

The gas world is watching Prelude’s progress, not least the Woodside Petroleum-led Browse joint venture (which includes Shell) which wants to use FLNG as the development option but is pondering technological advances beyond what Prelude is designed to achieve.

read more

Shell chief Ben van Beurden backs FLNG program

Screen Shot 2016-04-13 at 09.06.34

  • THE AUSTRALIAN
  • APRIL 13, 2016 12:00AM

Matt ChambersResources reporter: Melbourne

Paul GarveyResources reporter: Perth

Shell chief Ben van Beurden has defended the company’s floating LNG program after the shelving of the Browse LNG project in ­Western Australia and calls from joint-venture partner Woodside Petroleum for Shell to use more advanced FLNG technology to ­reduce costs at the giant gasfields.

Shell is pioneering the use of floating LNG (FLNG) through the $US15 billion ($19.6bn) Prelude project, where the world’s largest vessel is being built to process gas from the Prelude field in the Browse basin.

read more

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

Screen Shot 2016-04-13 at 08.57.46

“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.

read more

Shell CEO van Beurden sees a global carbon price as inevitable

Screen Shot 2016-04-13 at 08.38.47
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.

read more

Air agency: Shell refinery emissions sickened many

Screen Shot 2016-04-13 at 08.30.51

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.

read more

Iran launches talks with Shell

Screen Shot 2016-04-13 at 08.21.20

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.

read more

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

Screen Shot 2016-04-13 at 08.17.12

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.

read more

Bearish Options Activity on Royal Dutch Shell Plc After Worse Fundamentals

Screen Shot 2016-04-13 at 07.56.39

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.

read more

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

Screen Shot 2016-04-12 at 10.52.48

Screen Shot 2016-04-12 at 12.25.49

Screen Shot 2016-04-12 at 12.28.55

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.

read more

Shell CEO says may sell some North Sea assets to improve portfolio

Screen Shot 2016-04-12 at 11.13.29

PERTH | BY SONALI PAUL: Tue Apr 12, 2016

Royal Dutch Shell could sell some of its older, lower grade North Sea assets to improve the quality of its portfolio, CEO Ben van Beurden said on Tuesday, part of a two-year program to help finance its purchase of gas major BG Group.

After completing the $52 billion acquisition of BG in February, Shell said it would sell $30 billion in assets between 2016 and 2018 to help finance the deal and to maintain its dividend following a sharp drop in oil prices since mid-2014.

read more

Screen Shot 2016-04-12 at 11.06.18

Screen Shot 2016-03-15 at 10.34.57

Angela Macdonald-Smith: Energy Reporter

Shell’s global chief executive Ben van Beurden has pointed to a “broad industrial logic” for the Gladstone liquefied natural gas ventures to find ways to work together more closely, signalling a potential restructuring ahead as the oil major seeks to commercialise its Arrow gas resource.

Mr van Beurden said Shell, which recently acquired the Queensland Curtis LNG project as part of its $70 billion takeover of BG Group, was “absolutely convinced” the group would find a way of developing Arrow gas, which is jointly owned by PetroChina.

read more

Shell to Chevron Awaiting Demand From LNG Market in `Pause Mode’

Screen Shot 2016-04-12 at 10.52.48

Screen Shot 2016-04-12 at 10.53.31

James PatonRebecca Keenan and Dan Murtaugh: April 12, 2016

Screen Shot 2016-04-12 at 10.57.33

The over-supplied LNG market is in hiatus as energy giants from Chevron Corp. to Royal Dutch Shell Plc and Woodside Petroleum Corp. await a surge of demand from countries seeking access to energy.

Liquefied natural gas producers are in “pause mode” as low prices have stalled development of new projects, Woodside Chief Executive Officer Peter Coleman said today at the LNG18 conference in Perth. That respite means that coming years demand will exceed supply, causing prices to rise back to higher levels, Shell CEO Ben Van Beurden said.

read more

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

Screen Shot 2016-04-12 at 10.49.46

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.

read more

Gas industry needs to work harder, innovate: Shell boss

Screen Shot 2016-04-11 at 21.56.50

Screen Shot 2016-03-15 at 10.34.57Peter Klinger – The West Australian on April 12, 2016

Royal Dutch Shell chief executive Ben van Beurden will call for his industry to work harder at cutting costs to make sure the gas sector remains competitive with coal and the fast-growing renewable energy space.

Mr van Beurden, one of the biggest names to address the LNG18 conference in Perth, is expected to tell more than 2000 delegates today his industry needs to constantly innovate, from upstream to downstream activities such as shipping and regasification.

read more

Delays slow Prelude’s sail-away

Screen Shot 2016-04-11 at 21.40.37

Screen Shot 2016-03-15 at 10.34.57Peter Klinger – The West Australian on April 12, 2016

Royal Dutch Shell’s floating LNG prototype is thought to be two years behind its original schedule, demonstrating the complexity of a new processing module the energy sector hopes will deliver the next generation of liquefaction production.

Prelude’s progress will be a topic of discussion at the LNG18 conference, which kicks off in Perth today and includes sector heavyweights such as Shell chief executive Ben van Beurden.

Shell has never revealed the timetable or budget for Prelude, based on a giant processing vessel built in South Korea to be towed to its namesake gas field off the Kimberley. The latest guidance from Shell is for “material cash in 2018” though that timetable could be challenged.

read more

Royal Dutch Shell plc: Reasons Behind Moody’s Downgrade

Screen Shot 2016-04-11 at 17.44.47

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.

read more

Siemens, Mossack Fonseca and Shell

Screen Shot 2016-04-11 at 13.12.00

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. 

read more

Gazprom Mulls Selling 49% of Baltic LNG Project’s Shares to Shell

Screen Shot 2016-04-11 at 12.14.5911 April 2016

Russian energy giant Gazprom and Royal Dutch Shell are currently discussing the possibility of selling 49 percent of Gazprom’s shares of the Baltic LNG (Liquefied Natural Gas) plant to Shell, the Dutch company said Monday.

The Baltic LNG is a proposed LNG plant construction in Russia’s Leningrad Region oriented at the European and Latin American markets. It is expected to be commissioned in 2018.

FULL ARTICLE

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

Screen Shot 2016-04-11 at 09.44.59

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.

read more

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

Screen Shot 2016-04-09 at 18.06.40
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. 

read more

Moody’s downgrades Royal Dutch Shell to Aa2 negative outlook

Screen Shot 2016-04-08 at 23.16.56

Markets | Fri Apr 8, 2016

* Moody’s downgrades Royal Dutch Shell to aa2; negative outlook

* Ratings downgrades and negative outlook reflect Shell’s elevated leverage following the BG acquisition

* Under a low oil price scenario, we expect Shell to generate negative free cash flow at least through 2017

* Downgrade of Shell’s ratings is driven by expectations of negative free cash flow and weaker cash flow-based metrics at least through 2017

read more

Why I Wouldn’t Touch Royal Dutch Shell Plc & Tullow Oil plc With A Bargepole!

Screen Shot 2016-03-24 at 14.55.55

Screen Shot 2016-04-08 at 09.35.12

Screen Shot 2016-03-15 at 10.34.57By The Motley Fool  Apr 8, 2016

Investor appetite for the fossil fuel sector has died down in recent days amid a fresh dip in crude prices.

After moving back above the $40 per barrel marker last month, Brent values have subsequently run out of steam as enduring fears over supply/demand imbalances have come to the fore again.

Oil producers like Shell (LSE: RDSB) and Tullow Oil(LSE: TLW) have been carried higher following Brent’s surge from January’s multi-year lows of $27.67. But with ‘black gold’ back on the defensive, I reckon oil companies big and small are back in danger of a huge share price reversal.

read more

Shell under pressure to reduce spending

Screen Shot 2016-04-08 at 09.28.45

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.

read more

Shell Accused of Fraud

Screen Shot 2016-04-08 at 07.21.05

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.

read more

Shell’s top Brent trader leaving company – sources

Screen Shot 2016-04-07 at 12.25.53

Business | Thu Apr 7, 2016 11:47am BST

The head of European oil trading at oil major Royal Dutch Shell (RDSa.L), Stany Schrans, will leave the company later this year, two industry sources told Reuters.

Shell declined to comment.

Bloomberg was first to report the departure.

The sources said Schrans, who has worked for Shell for more than 15 years, was leaving due to personal reasons.

Shell has one of the biggest oil trading desks in the world and is one of the most powerful players in the benchmark Brent market, for which Schrans was responsible.

read more

Top Shell Oil Trader Stany Schrans Said to Leave Company

Screen Shot 2016-04-07 at 12.05.28

Screen Shot 2016-03-15 at 10.34.57By Laura Hurst and Javier BlasApril 7, 2016. Bloomberg.com

The head of European oil trading at Royal Dutch Shell Plc will leave the company later this year, a significant departure as the company is one of the biggest traders in benchmark Brent crude.

Stany Schrans has worked for more than 15 years at the company, mostly focused on trading North Sea oil, according to four people familiar with the matter who asked not to be identified because the information isn’t public. Tarek al Hassan, a senior Shell trader based in Singapore, is relocating to London to replace him, two of the people said. Shell spokesman Jonathan French declined to comment.

read more

%d bloggers like this: