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Posts Tagged ‘Australia’

Shell executives charged in lead up to landmark trial over billion dollar Nigerian bribery scheme

Sunday 15 October 2017

Senior Royal Dutch Shell executives have been charged in Italy for their role in a vast bribery scheme that deprived the Nigerian people of over a billion dollars, the Milan Public Prosecutor’s Office confirmed on Friday. Those facing trial include Malcolm Brinded CBE, the second most powerful person in the company when the deal was struck (1). Shell itself is also facing bribery charges alongside the four named individuals.

Malcolm Brinded Charged

This historic decision follows a dramatic U-turn in which it admitted that it knew its billion dollar payment would go to convicted money-launderer and former Nigerian oil minister, Dan Etete, in exchange for Nigerian oil block OPL 245 in 2011. read more

Shell chief punctures myths surrounding gas exporters

 Business columnist, Melbourne: 10 Oct 2017

Shell Australia’s new chair, Zoe Yujnovich, has injected what for some will be an uncomfortable dose of reality into what has been a generally misleading debate about the role that the three big Queensland export LNG plants have played in the east coast energy crisis.

In an address to the national energy summit yesterday, Ms Yujnovich took issue with the widely accepted narrative that exports from the three plants off Gladstone have created a shortage of gas on the east coast and driven a spectacular surge in gas prices for households and manufacturers. read more

Chevron starts LNG output at Australia’s Wheatstone, first cargo expected in weeks

MELBOURNE, Oct 9 (Reuters) – Chevron Corp said on Monday it has started producing liquefied natural gas (LNG) at its Wheatstone project in Australia, slightly later than expected, and plans to ship its first cargo soon. The LNG market will be focused on how smoothly Wheatstone progresses following the troubled start-up at Chevron’s bigger Gorgon LNG project. Both projects are fed from natural gas fields offshore the state of Western Australia. “The first cargo is on track to be shipped in the coming weeks,” Chevron Corp said in a statement. It had originally hoped to start exporting from Wheatstone in middle of 2017. Wheatstone is the sixth out of eight projects in a $200 billion Australian LNG construction boom that is now in its final stretch. The two remaining ones are Royal Dutch Shell’s Prelude floating LNG project and Ichthys, led by Japan’s Inpex. FULL ARTICLE read more

Australia closing in on Qatar as world’s top LNG exporter

* Australia LNG exports tipped to rise to 74 mt in 2018-19

* Australia’s share of Japan, Korea LNG imports seen growing

* Iron ore price forecast raised to $64 for 2017

SYDNEY, Oct 6 (Reuters) – Australia expects to increase exports of liquefied natural gas (LNG) by 16 percent from mid-2018 as $180 billion in new projects hit their stride, nearly catching up with Qatar, the world’s top supplier.

Rising LNG exports coupled with higher prices for steel-making commodities and thermal coal should see Australia’s overall resource and energy export earnings increase 2 percent in the year to end-June 2018, to a record A$211 billion ($165 billion), the Department of Industry, Innovation and Science said on Friday. read more

Shell’s Floating LNG Endeavor Is About To Begin

Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B) is getting closer and closer to finally completing its Prelude FLNG project off the northwestern coast of Australia. FLNG stands for floating liquefied natural gas, a marine vessel that can commercialize gas finds that are too small to justify building a new onshore LNG facility to develop. Let’s dig in. FULL ARTICLE

Shell Invests to Boost Global Gas Demand

Europe’s biggest energy company is investing in projects to boost global gas demand and aims to continue feeding the market it’s nurturing with new liquefied natural gas export plants.

Royal Dutch Shell Plc is supporting the development of gas use in heavy transport such as shipping and is also helping smaller and less credit worthy customers begin importing LNG, Maarten Wetselaar, the company’s director of integrated gas and new energies, said at an event at Bloomberg’s Sydney office Wednesday. As new LNG customers enter the market, that will open a window for Shell and others to develop new low-cost export plants. “I want to create shorts that we can build projects against,” Wetselaar said. “As we develop the market, we’ll need new supply. We will build new LNG projects to serve that market, but as for where, I would be wrong to tell you.” FULL ARTICLE read more

What You Missed in Royal Dutch Shell plc’s Quarterly Report

What Shell looks like now

There’s no question about how Royal Dutch Shell makes money. It is one of the world’s largest oil and natural gas drillers, with a large footprint in liquified natural gas. Oil and gas have been the driving force, broadly speaking, throughout all of the company’s over 100-years of existence. Investor questions generally focus on what management is doing to support and grow its core operations. FULL ARTICLE

Shell’s Prelude Officially Entered into Lloyd’s Register

By John Donovan

A report today by Seatrade Maritime News confirms that Shell’s massive FLNG facility Prelude has officially entered into Lloyd’s Register (LR) class. It also says that Prelude has arrived at its operating location in the Browse Basin, offshore northwest Australia (above) where it will be moored at a depth of 250m and will not be dry-docked for the first 25 years of its expected 50-year operational life. See their full article here from which the above extracts are taken. It lists the various parties involved in the huge project, including Lloyds Register. In December 2013, I published an article that should have set alarm bells ringing among all involved parties. Not one of them approached me seeking information. read more

Up to 800 possible jobs for solar farm which has been given green light

The 250MW Delga Solar Farm will be built 25km south-west of Wandoan. This continues the prominence of Wandoan in the region, adding to the largest solar farm in Australia to be built in the area, as well as the approval for a new coal mine. FULL ARTICLE

Why Shell Prelude is such a risky gamble!

After all is said and done who would build a hotel and a heliport, and a dock, besides or within 100 metres of a hazardous substances plant. It would simply not be allowed on land. This is what makes Prelude so risky.

Comment from Bill Campbell on the article:

Shell’s ill-fated $14bn gamble on Titanic Prelude FLNG Barge

FLNG

If FLNG has a future remains to be seen. It is under any measure an outstanding technical achievement. My only concern is the misplaced statements by RDS and Shell Australia on the risks. Doomcaster and I are in agreement, there is and always will be during the commissioning and steady state operation a risk of leakage so we can say the probability side of the risk equation is well understood. Whether it be human failure or otherwise leaks are difficult to avoid. The best database for leaks in the World is the homogeneous population of over 200 North Sea installations covered in HSE data which confirms in 11 years of operation that leakage frequency has a mean time between failures of circa 3 days. My problem is with the huge inventory and congested space is that Shell seriously downplays the potential consequence side of the risk equation. Post Piper Alpha and post Seveso there are two principal risk reducers, reduced inventory (fuel) and lots of space seperating modules from each other, from human habitation, control rooms, admin blocks, and from storage tanks. After all is said and done who would build a hotel and a heliport, and a dock, besides or within 100 metres of a hazardous substances plant. It would simply not be allowed on land. This is what makes Prelude so risky. read more

Shell’s ill-fated $14bn gamble on Titanic Prelude FLNG Barge

The Prelude, which is 488m long, arrived in Australia last month © PA

By John Donovan

Shell’s Prelude barge has been described as the biggest floating structure ever built and is said to be 12 times the size of the Titanic. It is a comparison that for obvious reasons Shell does not use, although others do. There have been far more dire warnings about the dangers attached to Prelude than were made about the Titanic’s maiden voyage before it tragically sunk. Most have come from a well-placed insider on the Prelude project and subsequently from Bill Campbell, the retired HSE Group Auditor of Shell International. read more

Australia’s $180 bln LNG megaproject boom enters final stretch

By Sonali Paul

MELBOURNE, Aug 14 (Reuters) – The last massive component of Australia’s $180 billion liquefied natural gas construction boom arrived on Monday, stepping up a race between Anglo-Dutch giant Shell and Japan’s Inpex to start chilling gas for export in 2018. Company reputations are at stake, as well as first access to overlapping gas fields and Australia leapfrogging Qatar as the world’s largest exporter of LNG. Royal Dutch Shell’s $12.6 billion Prelude project – the world’s largest floating LNG (FLNG) facility – is also behind schedule. FULL ARTICLE read more

Shell cannot say it was not warned about Prelude FLNG

Warning by Bill Campbell, retired HSE Group Auditor, Shell International: Hydrocarbon leaks on offshore installations are unavoidable!

The answer to the question, can offshore installations meet a zero tolerance standard for hydrocarbon leaks, is easily answered, they cannot! Keeping hydrocarbons in the box appears beyond the wit of man. 

The support for this rather pessimistic view is based on actual historic data from the North Sea. It should be noted that this key indicator is the number one, the foremost technical integrity measure recorded by the HSE offshore division in the UK. All operators also are required to have it as their top indicator and non-reporting of hydrocarbon leaks is an offence in Law. So there is a degree of confidence in the accuracy of this data.  read more

Shell’s 88 page global transformation plans leaked to John Donovan

Embarrassingly for Shell, as the New York Times has reported this morning, I have a leaked copy of an 88 page Shell internal document setting out proposals for Shell’s global plans generally and in particular for the Netherlands, where several hundred more jobs are going to disappear. Part of a world-wide jobs upheaval at Shell. 

A few days ago, CEO Ben van Beurden, mindful of the prospect of a falling oil price, claimed that Shell “is getting fit for the $40s.” Now we have a detailed insight about the scope of proposed transformational change at Shell deemed essential to achieving that objective. Embarrassingly for Shell, as the New York Times has reported this morning, I have a leaked copy of an 88 page Shell internal document setting out proposals for Shell’s global plans generally and in particular for the Netherlands, where several hundred more jobs are going to disappear. read more

Cheap oil forcing a rethink, says Royal Dutch Shell

  • The Wall Street Journal

Royal Dutch Shell has presented a pessimistic vision for the future of oil, even as the company reported success in generating cash during a prolonged energy downturn. Shell has cut costs and said it was preparing for a world in which crude prices might never regain precrash levels and petroleum demand declined. Shell chief executive Ben van Beurden said the company had a mindset that oil prices would remain “lower forever”. “We have to have projects that are resilient in a world where oil has peaked,” Mr van Beurden told reporters on a conference call discussing the company’s second-quarter financial results. “When it will happen we don’t know, but that it will happen we are certain.” READ MORE read more

LNG possibility lives on, even after death of Pacific NorthWest LNG

And two other large global energy players with regulatory approval from the B.C. and Canadian governments say they are trying to position themselves to be ready to make a decision on building their own billions-of-dollars of mega-projects in northwest B.C. to coincide with increased demand they forecast could kick in by the middle of next decade. Those projects are LNG Canada led by Royal Dutch Shell plc and Kitimat LNG, a 50-50 venture of Chevron and Australian-based Woodside Energy. read more

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