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Thursday 1 July, 2004

Planet Ark: Shell world record wells pump gas from 2 miles deep

The Daily Telegraph: Movers and shakers: “Peter Voser”

The Times: BP heads for SEC clash over reserves

The Times: Time to clean up oil accounting: “SHELL’s nightmare”

Daily Telegraph: Shell cheer down Mexico way: “At last, good news for Shell”: “Is that because the reserves were actually there?” 

Paper by Alfred Donovan prepared for presentation at the National Union of Ogoni Students (NUOS International, USA) Convention in Lincoln, Nebraska, held on 26/27 June 2004

Malaysian Times: Petronas gets Indon oil retailing licence

The Guardian: Bob Crow is right to fight, not genuflect: “witness the rewards for failure at Shell”

Reuters: Buckeye to buy Shell US Midwest assets for $530 million

Friday 2 July, 2004

Financial Times: Shell takes $330m write-down on Enterprise deal: “The company tried to play down the news of the write-down”

The Guardian: Shell takes $330m charge on Enterprise: “trying to restore shattered investor confidence”

Daily Telegraph: Shell to clean up its act with assets sales: “struggling to restore its reputation”

The Times: Shell to take £180m charge: “The news is a further blow to the company’s embattled shareholders”

The Wall Street Journal: Shell Will Take Quarterly Charge Of $330 Million: “reserves-booking scandal this year exposing Shell’s need for new reserves”

Saturday 3 July, 2004

Daily Telegraph: Shell ‘knew of reserves problems last October’: “The news is at odds with comments by Lord Oxburgh of Liverpool”

The Independent: Russia investment boosts BP profits: “oil and gas reserves. Unlike Shell, however, BP has been underestimating them”

Daily Telegraph: “major shareholders were astonished at the news that its Dutch chairman knew there was a problem with its reserves two months before its British chairman.”

The Wall Street Journal: Shell Details Overstated Profits: “inappropriate” accounting”

Toronto Star: Shell reduces profit over reserves $276 million U.S. overstatement: “Filing reveals impact of debacle”: “inappropriate” accounting in other areas”

Washington Post: Shell Restates Profits: “revision followed an embarrassing series of disclosures”

Financial Times: Shell files revised 20-F with SEC

Financial Times: Cairn Energy share placing set to raise £100m: “fourfold jump in its share price”: “field it acquired from Shell”

Daily Telegraph: Cairn raises £102m for India field: “Cairn shares have more than tripled since January, and the finds on the former Shell site”

The Times: Shareholders must take care when seeking retribution

The Independent: Unilever governance: “oil giant’s travails” Shell draws a blank: “after drilling several unsuccessful wells” 

The Guardian: Is ethical saint or sinner?

The Guardian: Cairn raises £103m for exploration in India: “Cairn bought its assets in the province from Shell last year for $7.2m (£4m) and its stock price has more than tripled since”

The Guardian: Russia helps BP to 17% rise in production: “in contrast to some of the recent missives from Shell”

The Guardian: Reality check

The Independent: Private Investor: Why do institutional shareholders get special treatment? “the same disinformation for all”

The Times: Out of Asia . . . oil firm that aims to conquer the West

The New York Times: Shell Says It Overstated Profits by $276M: “profits.. exaggerated..”; “inappropriate accounting..”-“resulted in profits being embellished”

Sunday 4 July, 2004 – Independence Day

The Observer: Bad publicity – not goodbye, but good buy: “Shell illustrates how a steady barrage of negative publicity can bring a company to its knees”: “The company’s reputation is now in tatters”: “We list the latest batch of leaders and laggards in the corporate publicity league in the accompanying table. These rankings are based upon news reports in the last three months. The current ’10 worst’ list is led by Shell.”

The Observer: Counting the wrong beans: ‘At some stage something happened to Shell’s values that made it acceptable to put up figures that weren’t completely above board,’

The Observer: British firms escape abuse lawsuits: “One of the allegations that is still likely to get a hearing is a high-profile case against Shell that claims that the oil giant colluded in Nigeria’s brutal oppression of Ogoni villagers”

News Shell admits overstating its profits: “also made errors in the way it accounted for exploration costs, certain gas contracts and earnings per share of its parent companies”

Sunday Telegraph: BP reserves the right to go its own way: “in the wake of the scandal at Royal Dutch/Shell”

THE BUSINESS: CASE BUILDS AGAINST SHELL: Shell’s embattled former and present management may have less than a month before new allegations are released.

THE BUSINESS: Shell shareholders fail to put foot down over vital reforms: “any sense Oxburgh hoped to give of the smooth functioning of the two-board system was undermined by the two chairman’s differing answers on when the company’s non-executive directors had known about the reserves problems.”

NEWSFLASH 4 JULY 2004: 8 DIFFERENT SHELL COMPANIES, ONE IN THE UK, ONE IN HOLLAND AND SIX IN THE FAR EAST, HAVE ISSUED A WRIT IN THE HIGH COURT OF MALAYA AT KUALA LUMPUR (CIVIL DIVISION) AND OBTAINED A RESTRAINING ORDER IN RELATION TO PAGES ON THIS WEBSITE THE LITIGATION (SUIT NO. S2-23-41-2004) RELATES TO DR JOHN HUONG AKA Shell Whistleblower No2″: Dr John Huong, is a former Shell geologist of almost 30 years standing. He revealed on this website his remarkable insider views about unscrupulous conduct within the Royal Dutch Shell Group, their underhand tactics and the intimidation which Shell applied to him and his family. That information has been deleted but is available by email on request to

Click here to visit the former WEB PAGES OF SHELL GEOLOGIST/INSIDER, DR JOHN HUONG on which his legal disclaimer and the relevant HIGH COURT DOCUMENTS are featured

Monday 5 July, 2004

Financial Times: IEA to push for global standards on reserves: “There are no consistent rules on oil reserves,”

Business Day: Overstatement raised oil giant’s profit by $432m: “Last Monday the leaders of Royal Dutch/Shell asked shareholders for forgiveness and time to revamp the oil giant.” Shell takes profit hit: “profits being exaggerated”: “inappropriate accounting”: “profits being embellished”

CBS MARKETWATCH TOP NEWS: Royal Dutch/Shell, Chrysler, Boeing: “Since January, Royal Dutch/Shell Group has announced a series of reductions to its proven reserves.” : Royal Dutch Shell profit overstated $276m:  “it had also made errors in the way it accounted for exploration costs, certain gas contracts and the earnings per share of its parent companies.” Qatar-Shell plant EPC deal by 2006


Tuesday 6 July, 2004 Saudis to Buy Up to 14.95% of Showa Shell’s Shares (Update3)

Financial Times: Shell director was told of reserve woes: “a Shakespearian drama”

Financial Times: IEA to push for global standards on reserves: “fall-out from the Royal Dutch/Shell Group’s slashing of its oil reserves”


Business Report: Shell unit pays $1.86bn taxes to Nigerian state: “Last year Shell reduced part of its production in western Niger Delta, following the escalation of ethnic conflict in the area”


Wednesday 7 July, 2004

The New York Times: Union Protest Stops Deliveries of Total’s Oil From Nigeria: “Violence around the city of Warri in March 2003 forced the Royal Dutch/Shell Group, ChevronTexaco and Total to halt 37 percent of Nigeria’s output for two weeks.”

The Wall Street Journal: Toyota, Shell Group To Jointly Trial New Gas-To-Liquid Fuel Toyota, Shell to jointly test new fuel

The Independent: OFT orders inquiry into LPG market: “The embattled oil giant Shell came under further regulatory scrutiny yesterday”

The Times: Need to Know: “Royal Dutch/Shell plans to sell a 9.9 per cent stake in Showa Shell” Shell Targets 95% Improvement in Gas Compressor Performance JV partners put major oil, gas projects on hold: “Shell alone had planned to spend $2.7 billion for its oil and gas projects but cut to $2.3 billion”

Bloomberg: Shell Says Oil-Sands Output Reduced by Mine Repairs (Update1)

Thursday 8 July, 2004

The Wall Street Journal: FTC Opens Probe Of Shell Oil Co Refinery: “William Kovacic, the FTC’s general counsel, said subpoenas already have been served”

Houston Chronicle: Refinery closing questioned: FTC examines Shell’s shutdown of California plant: “formal antitrust investigation by the Federal Trade Commission”

The Wall Street Journal: FTC Acts Against Two Oil Companies: “The launch of a formal investigation means the FTC has the authority to issue subpoenas to Shell”

New York Times: Regulators to Examine Shell’s Closing of California Refinery: ‘William E. Kovacic, the F.T.C.’s general counsel, said the agency’s investigation would “examine possible antitrust violations” by Shell’

The Times: Stop Press: Shell faces antitrust inquiry: THE US Federal Trade Commission has launched an investigation into plans by Royal Dutch/Shell to close down a Californian oil refinery

Los Angeles Times: FTC Probing Shell’s Plan to Shut Refinery: “We’re looking at any possible antitrust violations associated with the closure,”

LondonFreePress: Suncor, Shell lower production targets Shell Offers to Sell $103 Mln Stake in Malaysian Unit (Update2)

The Guardian: Bailiffs close in on Yukos: “BP and Shell have large stakes in Russia”

Times Online: S&P warns Shell to reform governance: “credit rating will be cut unless “effective” reforms are introduced”

Email from Mr Charles Wiwa, nephew of the late Nobel Laureate Ken Saro-Wiwa

Friday 9 July, 2004

Financial Times: Shelled out: “If only the executives of Royal Dutch/Shell, under fire over its reserves debacle, could achieve redemption so easily”

Financial Times: S&P raises concerns over Shell review: “battered by a scandal”

Financial Times: Shell edges closer to shake-up: “in the wake of the Anglo-Dutch oil group’s reserves crisis”

Daily Telegraph: Shell restored: “However S&P affirmed a negative outlook for the oil group”

The Times: Need to Know: “Royal Dutch/Shell has sold nearly a quarter of its Malaysian unit for an estimated $123 million”

The Wall Street Journal: S&P: Shell Canada Ltd. Still On Watch Neg: “will remain on CreditWatch with negative implications”

The Wall Street Journal: Total Resumes Nigeria Production; 5 Top Jobs To Nigerians: “Similar disputes were simmering Thursday in Shell”

The Wall Street Journal: Calif Senator Challenges Shell’s Efforts To Sell Refinery: “Federal Trade Commission confirmed that it has opened a formal antitrust investigation into Shell’s decision to close the refinery”

The Wall Street Journal: Shell Sold 24% Of Its Malaysian Refining Company Thursday: “dogged for months by a scandal over the accounting of its oil and natural gas reserves”

The New Zealand Herald: Shell turns down chance for first Iraq oil deal

The Shell sells 24% of stake in Malaysian refining unit for RM464m Shell to boost consultancy team: “service the Shell group of companies in the Asia-Pacific”

Saturday 10 July, 2004

The Times: SHELL SHOCK: The Money Programme provides a clear and merciless indictment of Shell, a company that prided itself on being a safe investment for widows and orphans

The Times: Need to Know: Global Business Briefing: “Royal Dutch/Shell is said to be under growing pressure to unify its board”

The Royal Dutch/Shell close to shake-up

Sunday 11 July, 2004

The Observer: Who will you be in 2020? “It rose to threaten Exxon, the most bountiful sister of them all. Shell’s crystal ball may have grown a little cloudy in the years since”

The Sunday Times: Business on the Box: Shell Shock. BBC 2. Thursday, 9.50pm. Reporters track down the oil giant’s ex-chairman, Sir Philip Watts, to quiz him over Shell’s reserves crisis.

Monday 12 July, 2004

The Wall Street Journal: Earnings Will Soar, but Markets May Not Get a Lift off: “Undeterred by the recent serious oil-reserve reductions and the management turmoil, he likes Royal Dutch Shell” THREAT BY ROYAL DUTCH SHELL GROUP TO HAVE THE COURAGEOUS SHELL WHISTLEBLOWER GEOLOGIST, DR JOHN HUONG, COMMITTED TO PRISON

Click here for details

Oil &  Gas Journal: Shell starts gas production from deepwater Coulomb development in Gulf of Mexico 

Tuesday 13 July, 2004

Financial Times: Militiamen ‘reclaim’ oil for Nigerians in struggle for rights: “led consultants commissioned by Royal Dutch/Shell to compare the Delta’s level of violence to the turmoil in Chechnya and Colombia.”

ChannelNewsAsia: Retail tie up threatens Australian oil business: trade body: “Shell are creating a duopoly threatening the long-term future of other major oil companies in Australia”

Melbourne Herald Sun: Fuel outlets feel pressure: “forcing hundreds of service stations out of business and putting pressure on unaligned BP and Mobil.” Shell restates quarterly income: “following the fiasco over its restatement of oil barrel reserves.”

The Wall Street Journal: Shell Adjusts 1Q Net Income $226M Higher To $4.7B

The Wall Street Journal: Shell Appoints Citigroup, Rothschild As Financial Advisors

Wednesday 14 July, 2004

Financial Times: Shell restates net income upwards: “Royal Dutch/Shell showed yesterday that the debacle this year over proved reserves was having minimal impact on its financial performance, at least in the short term.”

Financial Times: Shell picks banks to advise on shake-up: “more evidence yesterday of its new-found willingness to embrace the outside world”

The Guardian: Damaged Shell: “Shell wined and dined financial analysts and others who might influence opinion about the stricken oil company”

Daily Telegraph: Shell accounts change brings $226m upgrade: “Shell has been plunged into crisis after admitting that it had overstated its “proven” oil and gas reserves by 23pc”

The Time: Need to Know: “Speculation mounted that Royal Dutch/Shell is considering radical changes to its corporate structure”

London Evening Standard: Shell signals big shake-up

The Herald: Banks to help Shell restructure: “Shell is still facing a legal investigation into the reserves debacle”

The Guardian: Birthday blues

The Independent: Shell gets review advice

The Shell appoints Malaysian to key posts in China

Thursday 15 July, 2004

The Wall Street Journal: Shell’s Outside Auditors Got Warning on Reserves in 2002: “The documents also suggest that some potential reserves problems at Shell were much more widely known and discussed”

The Wall Street Journal: Royal Dutch/Shell: “There has so far been very little transparency about these issues.” Shell Outside Auditors Knew of Reserve Issues in 2002, WSJ Says

London Evening Standard: Shell alarm two years before scandal: “SHELL’S external auditors were warned the oil giant was inflating its energy reserves two years before the company finally came clean”

Reuters: Outside auditors warned on Shell reserves: “documents… indicate problems were flagged repeatedly to a wider circle of senior executives and board members than previously disclosed”

BBC TV: Oil giant Shell’s investors shocked: “that’s fraud in the United States and the Justice Department will have a basis for criminally prosecuting the executives”

The Times: SHELL SHOCK:  BBC Two, 9.50pm:  “I am becoming sick and tired,” he wrote, “of lying about the extent of our reserves.”

The Times: Shell tipped to merge UK and Dutch parents: “Shell is under intense pressure to streamline its complex board structure after the reserves misreporting scandal”

Financial Times: Moody-Stuart talks: ‘said yesterday he felt “a sense of responsibility” for what had happened’

Financial Times: It’s a Shell of a tale about van de Vijver: “An incriminating message, it is said, was found in his Shell e-mail account after he was sacked in March.”

The Guardian: BP should consider the ‘mother of all mergers’ with Shell: ”Many Shell shareholders are antagonised by the slow speed with which the board is looking at reforms and many of its board members are discredited by previous failures.”

The Guardian: Shell Shock 9.50pm, BBC2:  “Corporate giants haven’t had it easy recently, with scandal after scandal rocking the financial world. Shell joined their ranks last January”

The Independent: Government’s green energy strategy under fire from peers: “The chairman of Shell attacked the Government’s green energy strategy yesterday”

The Guardian: Energy policy attacked Growing strong… Shell Environmental Fund contributes $400,000

Financial Times: Mudlark: It’s a Shell of a tale: “some shareholders have asked what Moody-Stuart, who remains a non-executive director at Shell, was doing while the reserves debacle was unfolding.”

Friday 16 July, 2004

The Scotsman: Shell tight-lipped on claim: “TROUBLED Shell was involved in fresh turbulence yesterday as it stonewalled questions”

The Independent: Shell auditors told of problems with overstated reserves two years ago: “Anton Barendregt, is said to have highlighted systemic problems with the company’s reserves reporting procedures”

The Guardian: Shell had early reserves warning: “Shell admitted yesterday that it had been warned about inflated reserves before it was forced to issue the first of four downgrades this year.”

Bloomberg: Former Shell Chairman Claims he Acted `Appropriately,’ BBC Says

Daily Telegraph: Shell warning: “Auditors at Shell warned that an internal bonus system might encourage reserves levels to be inflated, two years before Shell said it had overstated its “proven” barrels”

The Times: Shell auditors face more questions: “Mr Barendregt states that when he signalled conflicts with SEC rules to his superiors he was overruled by the Reserves Committee and exploration executives.”

The Times: Need to Know: “KPMG and PricewaterhouseCoopers, the auditors of Royal Dutch/Shell, the oil giant, have come under scrutiny”


Bloomberg: Shell Says SEC Rules on Gas-to-Liquids Reserves Are `Untested’

Financial Times: Shell ponders reserves approval from US:  “forced to cut its overall level of proved reserves by more than 20 per cent in January after years of overbooking”

Daily Telegraph: Shell hath seen no fury like a corporate wife scorned: “First Shell lost its oil and gas.”

The Guardian: worthwhile policy or simply propaganda? “Or take Shell. It suffered a series of public relations disasters in the mid-90s”

Sunday 18 July, 2004

Kansas City Star: After secret talks fail refinery settles on prior agreement: “secret deal making between petroleum refineries and the government”

The Sunday Times: Market Mover: Richard Dunn: “As the Shell scandal proves, there are reserve issues with some of the major oil companies”

New York Times: U.S. Addiction to Foreign Oil Deepens

Sunday Telegraph: Varney turns gamekeeper: “made his reputation at Shell”

Monday 19 July, 2004

Los Angeles Times: Militiamen ‘Reclaim’ Oil for Nigerians: “consultants commissioned by Royal Dutch/Shell Group… compare the Delta’s level of violence to the turmoil in Chechnya and Colombia.” Ethnic Militia: Niger-Delta Youths Denounce Warlord

The Wall Street Journal: Curbing Foreign Investment: “decision… could adversely affect other exploration and production contracts: “A Shell official declined to comment”


Sydney Morning Herald: Shell eyes Sydney terminal site: “potentially forcing thousands of independent service stations to close”

The Shell wields axe to create global panel: Embattled oil giant to hack £54m legal spend; blue-chip panel to be slashed to five


Tuesday 20 July, 2004

Financial Times: Shell in move to reduce its legal costs: a host of civil lawsuits following its admission that it overstated its oil and natural gas reserves”: “550 in-house lawyers”

The Times of India: Shell ready to roll out gas stations in Q3: “Shell has licence to open up to 2,000 outlets”

ThisDayOnline: Shell Appoints First Nigerian MD

BBC News: Shell names first Nigerian boss

Wednesday 21 July, 2004

Financial Times: Oil companies ‘endangering whales’: “WWF, the conservation group, called on Shell to suspend its Sakhalin oil project pending a full review”

Financial Times: US increases scrutiny of oil groups: “investigations are stepped up in the wake of accounting problems at Royal Dutch/Shell and elsewhere.”

Houston Chronicle: Nigerian picked to head division: “analysts said was a bid to appease Nigerian unions and ethnic groups threatening production shutdowns”

Financial Times: Nigerian lands Shell post in west Africa: “The company is struggling to come to grips with its role in the civil unrest that plagues many of the country’s oil producing regions.”

The Guardian: Nigerianisation: Shell’s solution for troubled delta: “The reserves scandal that led to Sir Philip’s removal in part related to Nigeria”

The Wall Street Journal: SEC May Require Auditors To Sign Off on Oil, Gas Reserves: “SEC’s re-evaluation of its rules comes on the heels of the Shell accounting scandal”

The Wall Street Journal: S Korea LG Caltex Asks Japan Oil Cos For Gasoline Supply: “Showa Shell Sekiyu spokesman attributed the tight gasoline supply in part to Japan’s strong demand this summer”

The New York Times: House Panel to Begin a Hearing on Shell’s Reserve Scandal: “Shell officials were asked to testify, but will not, the company said.”

LA Times: “scandal at Shell oil”: SEC Weighs Requiring Certified Reserves: ‘overstatement of its proven reserves and “inappropriate” accounting in other business areas resulted in profits being inflated by $432 million.’

CBCNews: Shell to compensate Quebec motorists for damage caused by gas additive: “Hundreds of thousands of Quebec motorists may be eligible to receive money from Shell as part of a settlement of a class-action lawsuit.”

Thursday 22 July, 2004 Shell Canada disputes $100 million figure in suit involving Quebec drivers; “related to a fuel additive the company used in 2001 and 2002”

Legal Week reports: Slaughters to remain Shell’s top dog: “Group general counsel Beat Hess oversees the department globally, which has more than 600 lawyers.”

The Times: US watchdog under fire over oil reserves scandal: “House Committee on Financial Services convened a hearing on the Shell reserves scandal.” Nigerian oil unions suspend strike threat after talks with government, oil companies

Reuters: Lawmaker Urges Oil-Reserve Accounting Overhaul: “The cuts by Shell, the world’s third-largest energy group, are being investigated by the U.S. Justice Department”

The Wall Street Journal: SEC May Require New Rules On Audit of Oil Firms’ Reserves: “independent reserves assessments are increasingly popular in the wake of the Shell debacle”

The Wall Street Journal: Shell Canada Settles Suit Involving Quebec Drivers –CP: “Shell Canada could pay up to $100 million to about 500,000 Quebec drivers” CASTING FOR THE ROLE OF “HOUDINI WATTS”?

National Post: Shell Canada settles Quebec class-action suit: “Radio-Canada reported Shell Canada could pay as much as $100-million”

Canadian Press: Shell Canada reports Q2 profit of $285M, up from $175M a year ago

Friday 23 July, 2004

Financial Times: Shell corporate governance dubbed ‘weak to moderate’ in S&P ratings: “Meanwhile, the outlook on Shell’s credit rating remains negative” Shell to Shut Dutch Refinery Unit in September, Reuters Says

Borneo Bulletin: From BSP to Shell EP

The Guardian: Sorry to spoil the World Bank party, but hasn’t it lost its way?: “World Bank money has left a legacy of environmental and social devastation, from cyanide spills in Peru to land expropriation and water pollution at oil pipelines in Chad”

The Globe & Mail: Imperial, Shell fall short, say analysts: Both stocks drop a percentage point: “Both companies’ profit fell short of analysts’ expectations”

Saturday 24 July, 2004

The Times: Exciting ride ahead in oil majors’ shrinking world: “Merrill Lynch believes net oil output at Shell could be down between 4 per cent and 5 per cent in the second quarter”


The Wall Street Journal: Marathon CEO: New Regulations On Oil Reserves Not Needed: “Calzalot said he’s concerned scrutiny of the issue in light of the Royal Dutch/Shell Group scandal could result in unnecessary regulation.”

The Wall Street Journal: CHINA PRESS: China OKs Refinery Project: Originally proposed as a joint venture with Shell, the approved refinery is to be solely funded by China National Offshore Oil Corp

Los Angeles Times: CALIFORNIA Refinery Expert Is at Odds With Shell: “The proposed closure of the refinery has generated outrage among politicians and consumers”

Sunday 25 July, 2004

The Business Times (Singapore): Caltex, Shell raise petrol prices: “Factors contributing to the high petroleum product prices include tension in the Middle East, strong consumption from the China market and early concerns from the US market”

Financial Director: The incriminating 2002 Form 20F Sarbanes-Oxley certificates signed separately by Jeroen van der Veer, Sir Philip Watts and Judy Boynton.

The Independent: The Week Ahead: City seeks assurance from FTSE big hitters as recovery falters: “The Anglo-Dutch giant is expected to announce a fall in production for the first half of anything between 2 and 9 per cent”

The Sunday Times: “Shell, the oil-and-gas group that has been rocked by write-downs and management turmoil unveils its bumper second-quarter figures on Thursday”

London Evening Standard: How BP lords it over Shell: “looking ahead, one is in terrific shape, the other could be in terrible trouble”: “Shell’s reputation among investors lies in tatters”

London Evening Standard: The oil giants’ scorecard: “How they add up: BP 66, Shell 49”: “Shell: Desperately needs to find more oil after the reserves debacle”: “Bonuses for the executive team for 2003 were scrapped in the light of the reserves scandal”

London Evening Standard: Companies reporting next week: “The high oil price should also help the new management at Shell direct attention away from this year’s reserves restatement debacle”

Houston Business Journal: Shell pumps new product with multimillion-dollar campaign

The Business: Broker fears dividend may be a problem “THERE is a sense of nervous expectation ahead of Royal Dutch Shell’s interim results following the reserves debacle”

The Business: Oil companies face hard drill in Kazakhstan

Monday 26 July, 2004

The Business: The new king of the oil patch: “Shell, by contrast, was a sluggish competitor; its executives ended up creating oil on paper because they weren’t finding it underground” Exxon, BP, Shell to Report Jump in Second-Quarter Earnings: “Both stocks have beaten the 6.4 percent drop of Shell’s shares”: “overstated oil and gas reserves for years, sending down the stock.” BP, Shell, Eni Results May Put European Oil-Stock Gains at Risk: “The company disclosed in January it overstated oil reserves for more than five years.”

The Battalion: Shell foundation donates money to build University lecture hall

Financial Times: Oil sector governance: “Royal Dutch/Shell’s reserves downgrade was a dramatic failure of corporate oversight.”: “Good reputations take time to build, but are quickly lost.”

The Daily Telegraph: The week ahead: “Oil giant Shell suffered a further setback this month as fresh claims emerged that company directors knew as far back as October that there were problems with the reserves.”

Business Week: Can Shell Put Out This Oil Fire? “a devastating portrait of Shell as a dysfunctional company”: “The two boards should move quickly to find a successor to the 56-year-old van der Veer, who looks like a caretaker.”

Tuesday 27 July, 2004

Reuters: BP profits at bottom of forecasts: “has outshone scandal-hit rival Royal Dutch/Shell”

Bloomberg: BP 2nd-Quarter Net Rises 35% on Higher Prices, Output (Update3): “Last year, BP overtook Shell as the world’s second-largest oil company by market value after Exxon Mobil.” Shell Won’t Leave Nigeria – MD

Reuters: Oil Companies Sued in California Over Asbestos Death

The Guardian: Make or break time

The Wall Street Journal: Western Oil Sands Pres, CEO Turcotte To Resign Is Shell Ready to Rebound? “Forget Iraq and Iran,” says Gheit. “Royal Dutch/Shell needs a regime change.” Now If Only Shell Could Find Some Oil: Forget the reserve drama: At the current rate, Shell will run out of oil in a decade: “Shell will be a no-growth company at least for the next few years.”

Houston Chronicle: BP posts profit on low end of forecasts: “BP shares have still outperformed Shell since the start of 2004”: “BP… a better-run company”

International Herald Tribune: Russia aids 35% profit rise at BP   

Wednesday 28 July, 2004

Financial Times: BP earnings rise 23% as week of good news begins: “Shell was especially hit this year by the scandal that revealed it had wrongly booked more than 20 per cent of its reserves”

The Guardian: Kremlin soothes BP over trading in Russia: “now was the opportune time to make a takeover move for Shell, whose share price has been battered by slow growth and the oil reserves scandal.”

The Wall Street Journal: EARNINGS PREVIEW: Shell 2Q Pft Seen Up 25% At $4.17 Bln: “we see no quick (organic) fix for Shell’s ailing growth platform”

The Wall Street Journal: Shell’s Argentina Unit Lifts Fuel, Diesel Prices Wed

The Wall Street Journal: BP’s Profit Soars On Higher Prices,Rising Production

The Guardian: High oil prices boost BP profits: “outshone its scandal-hit rival Royal Dutch/Shell this year”

The Times: Strong oil market swells BP profits

The Guardian: The real reasons Bush went to war

Financial Times: Exxon mulls sale of Sinopec holding

Press Release From Shell Exploration & Production Company: Shell Announces First Production From Glider Field

Canadian Press: Western Oil Sands posts Q2 loss of $9.2M after year-ago profit

Thursday 29 July, 2004

Wall Street Journal: Shell Transport To Resolve FSA And SEC Investigations: “Shell to cease and desist from future violations of, the antifraud, reporting, recordkeeping and internal control provisions… SEC rules.”

Wall Street Journal: Royal Dutch/Shell 2Q Net Profit $4.0B: “Management… remains unable…to estimate…possible losses from the entire set of regulatory and other actions and litigation in relation to the reserves restatement.”

The Scotsman: Shell Fined £65M after Reserves Crisis: “inquiry which found that Shell violated reporting, record-keeping and anti-trust rules.”

Reuters: Shell pays fines for reserves woes: “Royal Dutch/Shell will pay about $150 million (82 million pounds) in fines for an oil reserves scandal that tarnished its reputation”

TheStarOnline: Shell fined US$120 million “Rebuilding credibility” and “regaining trust” are now the company’s key priorities, it said in its annual report.”

BBC NEWS: Shell fined over reserves scandal: “will pay a penalty of £17m to the FSA – the biggest fine ever imposed by the regulator – and a $120m (£65.7m) civil penalty in the US.

London Evening Standard: Shell pays over reserves scandal: “It still faces a host of multi-billion dollar class-action lawsuits and a US Department of Justice probe.”: “Shell revealed today production was likely to remain flat until 2007 at best

Bloomberg: Shell Pays $150 Million to End Probe; Output May Fall: “hopeful step in ending the reserves debacle that led to the ouster of three senior executives, the loss of a top-tier investment rating and more than a dozen shareholder lawsuits” SEC Settlement With Royal Dutch Shell Fails to Fix Governance Flaws That Allowed Fraud to Occur and Fails to Hold Executives Personally Accountable for Over $150 Million in Fines

Financial Times: BG burns as bright as sector’s giants: Royal Dutch/Shell is also expected to report impressive earnings today as a result of higher oil prices.

The Independent: BG soothes fears over Kazakhstan tax inquiry: “BG had planned to sell its stake to its partners, who include Shell, Exxon-Mobil, Total and ENI, until the government stepped in.”

The Times: BP ‘risking its reputation’ in Russian oil deal

The Times: BG investigated over Kazakhstan customs duties: “BG is talking to the Kazakhstan Energy Minister to try to settle the deal on the terms agreed with the partners Eni, ExxonMobil, Shell and Total.”

The Times: BG’s bet on Bolivian gas could help it to breeze past oil majors

Friday 30 July, 2004

The Times: Simple solutions are best for Shell: “One of the world’s most trusted investments lost its credibility and its top credit rating.”: “directors and top managers were the authors of Shell’s misfortunes”

The Times: Shell and BASF set to sell $6bn plastics business : “first strategic move for the Anglo-Dutch oil company since becoming mired in its oil reserves scandal in January.”

The Times: Shell agrees to pay fines of £83m: “continuing criminal investigation by the US Department of Justice.”: “Both Euronext and AFM, the Dutch securities institute, are also investigating Shell”

Financial Times: Shell pays $151m to watchdogs: “Thursday’s announcement has no bearing on the civil and criminal cases against individuals linked to the company.”

Financial Times: US watchdog shows its teeth: “Parmalat”; “Enron”; “Shell” Shell pays huge penalties to regulators: “Shell also confirmed that it breached market abuse provisions of the FSA’s Financial Services and Markets Act 2000”

Business Report: Shell gets hefty fine for reserves fiasco : “The SEC found the Anglo-Dutch group had violated reporting, record-keeping and anti-trust rules”

The Washington Times: Shell agrees on penalty to settle charges: “While trying to put the scandal behind it, Shell reported a 16 percent increase in underlying second-quarter profits thanks to higher oil prices.”

Financial Times: Setting the scene: “Shell expects hostile takeover bids from BP and ExxonMobil within the next few months. These bids will be followed by a successful ‘white knight’ bid from Total”

Financial Times: Shell fighter begins the big clean-up: “it could itself become a bid target”; “if you get it hopelessly wrong, then people start sniffing around.”: “In answer to a question about whether they are sniffing now, he said: “You will have to ask the sniffers”

Financial Times: Rescued by fuel sales and refining: “fails to mask the problems in Shell’s basic business of finding and producing oil.”

Financial Times: UK and US regulators team up and levy £83m in penalties: “more robust policing since the Enron scandal broke in 2001.”

The Independent: Shell’s road to redemption remains a long one: “An extradition battle involving Shell’s former chairman Sir Phil Watts would provide splendid entertainment but it would also guarantee plenty more bad headlines”

The Independent: Shell pays £83m fine to settle scandal over oil reserves: “Shell and a number of former and serving directors are also still under criminal investigation by the US Justice Department”

SINGAPORE PRESS: GIC Buys 5% Of Malaysia Shell Refining: “The investment arm of the Singapore government has emerged as possibly the third-largest shareholder of Shell Refining Co.”

The Boston Globe: Shell to pay $151m to settle misstatements: “fails to hold personally accountable the corporate insiders who perpetrated the fraud,”

Daily Telegraph: It’s a big bite for bureaucrats: “Shell shareholders are writing the cheques and, as the American lawyers get going, they will be writing more and bigger ones.”

Daily Telegraph: Shell to pay watchdogs £80m for oil reserves row: “but warned it could not put a figure on the cost of investor lawsuits.”

The Wall Street Journal: Shell to Pay $150 Million in Penalties: “Shell also has arranged with U.S. authorities to grant Dutch and British employees special diplomatic safe passage to and from American shores”

New York Times: Shell to Pay $150 Million in Settlement on Reserves: “production fell 5 percent to the equivalent of 3.58 million barrels of oil a day”: “The underlying numbers are ‘pretty horrendous,’ said Neil McMahon, an analyst with Sanford C. Bernstein in London,”: “Separately, the Commodity Futures Trading Commission said… Shell’s energy trading unit, Coral Energy Resources, had agreed to pay $30 million to settle accusations that it had submitted FALSE price data to publishers”

Daily Mail: Shell is beached in the past: “there are deep-seated problems at Shell that go far beyond fiddling the numbers to make the reserves look better than they were.”: “exploration and production look dire”

FT: An ocean of difference across the Atlantic: “It still faces a regulatory inquiry in the Netherlands, potential criminal investigation by the US Justice Department and myriad class action suits. They form a pretty powerful deterrent against following Shell’s abuse of the markets.”

FT: Shell files revised statement with SEC: The revision was necessary because of the Dutch-UK oil and gas group’s serial restatements of proved reserves earlier this year.

FT: Settling the bill but not the issues: “companies also tend to look to their more reputable peers, of which Shell used to be one. This is no longer the case.”: “whether a management that lied to its biggest shareholders would have any compunction doing the same to Nigerian villagers.”

Saturday 31 July, 2004

The Guardian: Shell fined £84m over reserves scandal:  “Shell is facing a criminal investigation by the US department of justice, ongoing inquiries by the Dutch financial market regulator and the Euronext stock exchange as well as litigation in the US”

The Guardian: A slap on the wrist for Shell: “Nor can it yet draw a line under the costs of the affair. That lies with the US justice department and the American courts.”

The Wall Street Journal: Moody’s Confirms Aa1 Ratings Of Royal Dutch Shell Entities: “the negative outlook reflects uncertainties”: “Another factor implicit in the negative outlook”

The Wall Street Journal: Moody’s Cuts Motiva Enterprises L-T Debt To A2: “The long-term rating downgrade primarily reflects the impact of Moody’s downgrade in May 2004 of Motiva’s 50% owner, Shell Oil”

The Wall Street Journal: Moody’s Cuts Deer Park Refining L-T Rating To A2: “The long-term rating downgrade primarily reflects the impact of Moody’s downgrade in May 2004 of Deer Park’s 50% owner, Shell Oil Company”

The Wall Street Journal: Shell SEC Deal Fails To Solve Governance Issues – Lawyer: “accuses executives and board members of numerous wrongdoings – including breach of fiduciary duty and fraud”

The Wall Street Journal: Shell Transport And Trading Buys Back 2M Shares

 The Wall Street Journal: UK Market Regulator Earns Stripes With Shell Fine: “”The Shell case, by raising the stakes so dramatically for the FSA, is kind of another way of rattling the handcuffs.”

New Zealand City: Fuel price hike expected says Shell

The Guardian: See Shell

The Guardian: British watchdog catches up with US hare: “Shell faces the prospect of a string of civil actions from shareholders who feel duped.”

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