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Posts Tagged ‘Oil Reserves Scandal’

Shell must put BP out of its misery

Screen Shot 2014-10-28 at 11.51.59Article by Jeremy Warner published on 4 Jan 2015 in The Sunday Telegraph

Valued at nearly £140bn, Shell is today worth almost twice as much as BP. Shell must put BP out of its misery before anyone else pounces. Here’s an idea that has investment bankers drooling in anticipation, but needs to be killed off here and now before it becomes self fulfilling… I can’t speak for Shell, but I can report that there is absolutely no appetite for it within BP, which is as bemused as me by the rumours.

Here’s an idea that has investment bankers drooling in anticipation, but needs to be killed off here and now before it becomes self fulfilling – that the time may finally be ripe for Britain’s two oil majors, Royal Dutch Shell and BP, to bury the hatchet and merge, or rather, for the much stronger Shell to takeover the weakened BP.

I can’t speak for Shell, but I can report that there is absolutely no appetite for it within BP, which is as bemused as me by the rumours.

The concept is, of course, scarcely new. We know that exploratory talks have been held on several occasions in the past. Lord Browne, the former BP chief executive, no less, has admitted to them. read more

Dutch Court Throws Lifeline for Non-US Class Action Lawsuits

The court was used once before in a similar case launched in 2007 against Royal Dutch Shell, when investors resolved their claims for €316 million with the oil giant.

Wednesday, January 25, 2012 7:22:02 AM
Pension, endowment funds, and other international shareholders have a new avenue of enquiry to seek damages of alleged corporate fraud thanks to a European court decision.

(January 25, 2012)  —  The first class action lawsuit settlement to be approved for shareholders based outside the United States, since the Supreme Court tightened rules about international investors seeking redress through its legal system in 2010, has thrown a lifeline to asset owners suspicious of corporate fraud.

A case brought by international pension schemes, endowments and other large investors against Swiss reinsurer Converium Holding (now Scor Holding (Switzerland)), was settled out of court with damages of over $58 million being approved for distribution by the Amsterdam Court of Appeal last week. read more

From our archive: ‘…Malcolm Brinded is certainly lying when he states that he did not know’

From a Shell Insider: “…Malcolm Brinded is certainly lying when he states that he did not know”: Mon 20 Feb 2006 04:27 AM EST

Mr Donovan

After reading some contributions to your site of insiders it made me decide to share something with you and your readers. Perhaps you see it fit to publish, I have no other avenue to vent my frustration and very deep anger.

Of late the networks have highlighted the treatment of prisoners by Americans in their prisons for presumed terrorists. At least to me it has become very clear that there has been a fundamental flaw in the command structure of the armed forces. And I am cynical enough to believe this flaw was designed and knowingly created by the ‘brass’ and top politicians. read more

Shell denies swindling gov’t of excise taxes

“Shell has paid all the right taxes and strongly denies having engaged in any fraudulent activity, especially smuggling, as this is very much against its business principles…”

Posted at 08/22/2011 8:36 PM

MANILA, Philippines – Pilipinas Shell Petroleum Corp. denied it has defrauded the government of billions of pesos of excise taxes for importing a blending component for unleaded gasoline.

In a statement, the oil importer said the product in question, alkalyte, is not a finished product and therefore not subject to an excise tax.

“However, when the alkylate is further processed into finished unleaded gasoline product that is fit and ready for consumption, the finished product is subject to the payment of excise taxes before the same is released from Shell’s refinery. In other words, no excise tax is lost on the alkylate imports in question,” it said. read more

Controversy over Shell Value Creation Teams



John – in your posting dated 31 March 2011 “You can be sure of Shell – the biggest confidence trick in history”, you wrote

when Shell so-called “value creation teams”, were already engaged in activities leading to the falsification of Shell’s oil and gas reserves and one of the biggest investor frauds in history.

I wish to correct any impression the team members were in any way conducting themselves in any other way than as competent, dedicated technical professionals conducing a root and branch examination of the huge volume of hydrocarbons in Shell’s resource portfolio categorized as “Scope for Recovery”. The aim of the exercise was to identify activities & projects which could (I emphasise the word could) lead to booking volumes of hydrocarbons as “Expectation” volumes, not proved, and only if there was a reasonable level of certainty the projects would go ahead. The outcome of the Value Creation initiative was a complete change in the way the company goes about generating hydrocarbon development concepts, designing and executing well programmes, defining and executing major engineering projects and optimizing the way facilities are operated and maintained. The current suite of E&P Global Processes, operating standards, learning & development programmes, best practice sharing / knowledge management owe their existence to the pioneering work conducted by the Shell technical professionals who worked in the Value Creation Teams. read more

Shell is very different from Enron

Shell is very different from Enron. We were criticized for that some time ago and I’m glad we have a absolutely rock-solid way we do business. And, if you read our annual report, you read our footnotes and all the details, everything is in there. It’s all completely transparent, as far as Shell is concerned.

Sir Phillip Watts, Group Chairman, Royal Dutch Shell Group

By John Donovan

During a Bloomberg interview in 2002, with the then Group Chairman of Royal Dutch Shell, Sir Phillip Watts, reference was made to the core Royal Dutch Shell business principle of complete transparency. read more

Beleaguered BP could make a tempting target for Royal Dutch Shell

Two years on from the biggest shareholder revolt on pay the London market has seen and things are getting back to normal at Royal Dutch Shell.

Shell had its moment back in 2004 with its reserves scandal but from 2005 embarked on a reconstruction involving a big increase in investment. Photo: GETTY IMAGES

Damian Reece By Damian Reece, Head of Business 6:10AM GMT 16 Mar 2011

Peter Voser, the chief executive, earned £4.8m in 2010, four times as much as his rival Bob Dudley at BP.

But then the companies’ fortunes could not have been more different over the past couple of years. BP workers were killed yet again after a fatal safety lapse and the company’s Macondo well created a fissure in the earth’s surface that spewed pollution into the Gulf of Mexico.

BP’s shares have underperformed the All Share by 60pc as a result while Shell has lagged by 22pc, although it has outperformed its oil peers by 9pc. BP has underperformed the same group by 30pc. Shell’s total market capitalisation across its two classes of share is £132bn and BP £86bn – a gap I doubt Dudley will close in his time as chief executive and it will be beyond his successor too. read more

Shell: oil sands project adds 100,000 barrels/day

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Royal Dutch Shell PLC said Wednesday a major oil sands project in Canada is now producing 100,000 barrels per day, nearly doubling the company’s production from the unconventional source.

The Jackpine Mine project has been five years in the building and cost an estimated $2 billion. With it on line, total production by the Shell-operated Athabasca Oil Sands Project has increased to a quarter of a million barrels per day. Shell’s total production was 3.11 million barrels of oil and equvalents per day in the second quarter. read more

Shell Hldr Foundation: Court Declares Shell Settlement Binding


MAY 29, 2009, 9:53 A.M. ET

Edited Press Release

AMSTERDAM (Dow Jones)–The Stichting Shell Reserves Compensation Foundation Today announces Friday that the Amsterdam Court of Appeals has declared the Non-U.S. Settlement Agreement concerning the recategorisation by Royal Dutch Shell PLC (RDSB.LN) of certain of its oil and gas reserves binding.

The agreement provides relief in the amount of US$352.6 million to qualifying non-U.S. shareholders who bought Shell shares on any stock exchange outside the United States from 8 April 1999 through 18 March 2004. read more

Class action giant Melvyn Weiss to serve 30 months

In August 2005 Schulman, Bershad and his partners on the East Coast firm now known as Milberg secured a $90 million settlement for investors in Shell. They had sued the company and its directors, including former chairman Sir Philip Watts, over the oil reserves scandal.