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August, 2004:

The misreporting scandal: Shell penalties ‘bolster’ “BILLION-DOLLAR” class action lawsuits

Aug 26th, 2004
by John Donovan.
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The Times: The misreporting scandal

Shell penalties ‘bolster’ “BILLION-DOLLAR” class action lawsuits

“A source close to the SEC told The Times last night that a list of questions had been sent to all Shell executives involved in the inquiry. It is understood that those questions have been passed to, among others, Sir Mark Moody-Stuart”

From James Doran, Wall Street Correspondent

August 26, 2004

BILLION-DOLLAR class action lawsuits against Shell will be bolstered by the company’s settlement with UK and US regulators over its oil reserves misreporting scandal, Wall Street lawyers said last night.

Melvyn Weiss, the senior partner of Milberg Weiss, said that the $150 million (£84 million) in fines imposed on Shell by the Securities and Exchange Commission (SEC) and the Financial Services Authority (FSA) on Tuesday “demonstrate that our allegations are well founded”. The New York law firm is claiming damages from Shell on behalf of the company’s employee pension fund. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell hit by $1.5bn oil pollution claim from Nigerian Senate

Aug 26th, 2004
by John Donovan.
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The Independent: Shell hit by $1.5bn oil pollution claim from Nigerian Senate

“Shell was linked by international campaigners to the military government of Sani Abacha, which executed a delta activist, Ken Saro-Wiwa.”

Saeed Shah

United Kingdom; Aug 26, 2004

SHELL, THE beleaguered oil giant, has been asked to pay $1.5bn (pounds 830m) compensation by Nigeria’s Senate to communities affected by oil pollution in the country.

The resolution passed by the Senate, against the company’s Nigerian joint venture, Shell Petroleum Development Corp, was to compensate the Ijaw tribe in the southern Bayelsa state. SPDC has long been accused by activists of not cleaning up oil spillages and complicity in human rights abuses. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Los Angeles Times: Shell Increases 2004 Spending in Europe

Aug 25th, 2004
by John Donovan.
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Los Angeles Times: Shell Increases 2004 Spending in Europe

“The alleged role of individuals in the scandal remains under investigation by the SEC, and Shell also faces a separate probe by the U.S. Justice Department.”

By Associated Press

25 August 04

LONDON — Royal Dutch/Shell Group on Wednesday announced a $150 million increase in the amount of money it will spend in 2004 on exploration and production in Europe, bringing the total to $1.8 billion.

In addition to Italy, Ireland, Germany and Austria, Shell’s European region includes the North Sea, which is made up of Britain, Denmark, Netherlands and Norway. Despite recent concerns in the oil industry of declining production in the North Sea, Shell said it remains a strategic heartland for the company. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Forbes: Shell to Spend More on North Sea Venture

Aug 25th, 2004
by John Donovan.
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Forbes: Shell to Spend More on North Sea Venture

Shell has acknowledged that the overstatement of reserves and “inappropriate” accounting in other business areas resulted in profits being inflated by US$432 million.

Associated Press

08.25.2004,

Royal Dutch/Shell Group announced Wednesday that it would spend US$1.8 billion on exploration and production in the North Sea, including building a pipeline to transfer gas from Norway to Britain.

Shell said the North Sea remained a strategic heartland.

“We have invested around 8 billion pounds (US$14.3 billion) in technology, manpower and infrastructure in the past 10 years,” he said. “We are not going to walk away from that investment.”

One of the fields likely to receive part of the additional investment is Ormen Lange in Norway, which was among oil fields subject to last year’s controversial reserves downgrades by the company. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Forbes: Nigerian Senate Orders Shell Unit to Pay

Aug 25th, 2004
by John Donovan.
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Forbes: Nigerian Senate Orders Shell Unit to Pay

“Nigeria’s Senate has ordered a subsidiary of petroleum giant Royal/Dutch Shell to pay a Nigerian ethnic group US$1.5 billion… for oil spills in their homelands”

Associated Press

08.25.2004, 12:18 PM

Nigeria’s Senate has ordered a subsidiary of petroleum giant Royal/Dutch Shell to pay a Nigerian ethnic group US$1.5 billion (euro1.2 billion) for oil spills in their homelands, but the legislative body can’t enforce the resolution, an official said Wednesday.

Nigeria’s Senate ruled Tuesday that the unit, Shell Petroleum Development Company of Nigeria Ltd., must disburse the payment over five years to the Ijaw people of Nigeria’s oil-flush south as compensation for pollution in their area since 1956, Senate spokesman Henry Ugbolue said. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell faces £830m Nigeria claim

Aug 25th, 2004
by John Donovan.
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London Evening Standard: Shell faces £830m Nigeria claim

“The FSA’s conclusions will raise questions about the part played by Watts’ predecessor, Sir Mark Moody-Stuart, chairman between 1997 and 2001.

Steve Hawkes,

25 August 2004

ANGLO-DUTCH oil giant Shell suffered yet another blow today after it emerged the group could face a lengthy court battle over a $1.5bn (£833m) environmental compensation claim in Nigeria.

The Nigerian Senate, the country’s controversial upper house, passed a resolution asking Shell’s Nigerian unit to compensate oilfield communities in the Niger Delta for pollution.

Its move came as Shell struggled to shake off fresh controversy over its reserves scandal following yesterday’s damaging reports by regulators on both sides of the Atlantic. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

The Shell Chairman responsible for Shell’s descent into cover-up and scandal

Aug 25th, 2004
by John Donovan.
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ShellNews.net: The Shell Chairman responsible for Shell’s descent into cover-up, scandal and shame on an epic scale – Sir Mark Moody-Stuart

By Alfred Donovan, 25 August 2004

(This article was written at the kind invitation of Mr Charles Wiwa, the nephew of Ken Saro-Wiwa, for publication in a US newsmagazine circulated to university students. Charles Wiwa is one of the parties in a U.S. Class Action lawsuit being brought against Shell in respect of its misdeeds in Nigeria.)

It is now confirmed by the reports by the U.S. Securities & Exchange Commission and the UK Financial Services Authority that the deception regarding Shell reserves started during the tenure of Shell Chairman Sir Mark Moody-Stuart. He is identified in many newspaper reports as being implicated in the reserves debacle. As will become obvious when reading this article, the news stories naming Moody-Stuart come as no surprise to me. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

London Evening Standard: Shell scandal ‘could be repeated’

Aug 25th, 2004
by John Donovan.
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London Evening Standard: Shell scandal ‘could be repeated’

“Findings by regulators have widened the scandal by accusing Shell of giving false reserve figures from 1998 to 2003, raising questions about the role of executives, including Sir Mark Moody-Stuart”

Steve Hawkes,

25 August 2004

REPEAT of the reserves crisis at Shell may be unavoidable despite moves by the US regulators to force oil and gas majors to hire third parties to check the size of their discoveries.

Ryder Scott, the US firm brought in to requantify Shell’s reserves earlier this year, claims there are simply too few of its type around to cover the number of companies operating in the energy industry.

Ryder Scott chief executive Ron Harrell said: ‘Clearly there are not enough of us qualified to serve the needs of companies reporting to the Securities and Exchange Commission in conducting annual, meaningful reserve certifications.’ read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Daily Mail: Shocking rebuke stings Shell

Aug 25th, 2004
by John Donovan.
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Daily Mail: Shocking rebuke stings Shell

“Officials are said to have found Shell’s behaviour particularly appalling given the fact that the Anglo-Dutch giant had appeared a pillar of respectability.”

Ruth Sunderland,

25 August 2004

THE dressing- down administered to Shell by City regulator the Financial Services Authority is one of the most ferocious and shaming ever suffered by a major British company.

The FSA confirmed it is imposing a £17m fine on Shell, which admitted in January that it had overstated its oil and gas reserves by a fifth.

That is a mere drop in the oil well for Shell. But the truly damning part of yesterday’s announcement was not the financial penalty but the language used to describe Shell’s ‘unprecedented misconduct’. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

The horror story that has emerged from Shell

Aug 25th, 2004
by John Donovan.
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The Times: An auditor of no account

“the horror story that has emerged from Shell”: “determination to present the City with inflated numbers…widespread”

by Patience Wheatcroft

Business Editor’s Commentary

August 25, 2004

IT cannot have been much fun being the Group Reserves Auditor (GRA) of Shell. With no staff and limited resources, the part-timer could only visit a fraction of the group’s operating units in any one year. And it seems that he might have just as well not have bothered anyhow.

Reading the Financial Services Authority’s report into why it felt Shell deserved a £17 million fine, it emerges that the GRA was given as much respect in the organisation as the tea lady might have had. He could voice concerns about the valuations the company chose to use and they would be totally ignored. He had no authority to enforce the official rules on how reserves should be valued or even hold the company to its own guidelines. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell Settles Oil Reserve Fraud Case for $150.7 Million

Aug 25th, 2004
by John Donovan.
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The New York Times: Shell Settles Oil Reserve Fraud Case for $150.7 Million

Degenhardt added that the overstatements had occurred “over an extended period.”

Posted 25 August 04

LONDON (Reuters) – Regulators said on Tuesday they would pursue individuals responsible for a reserves scandal at Royal Dutch/Shell Group (RD.AS) (SHEL.L), as the oil giant settled $151 million in fines over the debacle.

“As our investigation continues, we intend to focus on, among other things, the people responsible for Shell’s failures,” said Harold F. Degenhardt, administrator at the Securities and Exchange Commission (SEC) in the United States.

Degenhardt added that the overstatements had occurred “over an extended period.” The SEC added that it had warned Shell before late 2003 that its “reported proved reserves potentially were overstated.” read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Investigators say Royal Dutch-Shell officials in sights

Aug 25th, 2004
by John Donovan.
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Houston Chronicle: Probe aims at top: Investigators say Royal Dutch-Shell officials in sights

By TOM FOWLER

Posted 25 August 2004

U.S. and British securities regulators are focusing on senior Royal Dutch-Shell officials and the roles they may have played in the oil giant’s massive overstatement of reserves.

The Securities and Exchange Commission and England’s Financial Services Authority said Tuesday they are now pursuing senior officials from the company related to the matter, which led to numerous shareholder lawsuits and a Justice Department investigation.

“As our investigation continues, we intend to focus on, among other things, the people responsible for Shell’s failures,” said Harold Degenhardt, administrator of the SEC’s Fort Worth office. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

SEC, FSA Fine Shell For Reserves Overstatements

Aug 25th, 2004
by John Donovan.
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THE WALL STREET JOURNAL: SEC, FSA Fine Shell For Reserves Overstatements

“The SEC can still bring civil charges against individuals. Prosecutors at the U.S. Justice Department – who can bring criminal and civil charges – are continuing their own probe into the reserves issue”

DOW JONES NEWSWIRES

August 24, 2004 2:25 p.m.

By Mark Long

Of DOW JONES NEWSWIRES

LONDON — U.S. and British listing authorities Tuesday formally announced they are fining embattled oil giant Royal Dutch/Shell Group (RD, SC) around $150 million for overstating its tally of oil and natural gas reserves.

The fines – announced simultaneously by the U.S. Securities and Exchange Commission and the U.K.’s Financial Services Authority – are in line with fines Shell said last month it had agreed to pay the agencies in a preliminary agreement. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

SEC Order Shows Many Involved In Shell Reserves Debacle

Aug 25th, 2004
by John Donovan.
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THE WALL STREET JOURNAL: SEC Order Shows Many Involved In Shell Reserves Debacle

“administrative order confirms that the scandal touched many officials beyond the senior executives who have left the company”

By JOHN M. BIERS

August 24, 2004 6:25 p.m.

Of DOW JONES NEWSWIRES

HOUSTON — After months of quietly investigating the Royal Dutch/Shell (RD,SC) accounting scandal, U.S. regulators finally weighed in Tuesday, concluding in an official report that the company “knowingly or recklessly” misrepresented its oil and gas holdings.

The government disclosed no new bombshells, but a Securities and Exchange Commission administrative order confirms that the scandal touched many officials beyond the senior executives who have left the company. Shell neither confirmed nor denied the findings in a 19-page SEC order released in tandem with $125 million settlement. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

The Guardian: Damned in detail – but let off lightly

Aug 25th, 2004
by John Donovan.
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The Guardian: Damned in detail – but let off lightly: Shell faced far higher penalty in the US: The Financial Services Authority’s judgment of the Shell reserves scandal is damning both in detail and conclusion, accusing the company of “unprecedented misconduct”.

Wednesday August 25, 2004

The Financial Services Authority’s judgment of the Shell reserves scandal is damning both in detail and conclusion, accusing the company of “unprecedented misconduct”.

To a degree, the “unprecedented misconduct” has been met with an unprecedented punishment. The £17m fine slapped on the company is more than four times the previous record for an FSA sanction.

Unprecedented it may be, but will it hurt? And, by meting out a £17m fine on Shell, has the FSA raised the bar when it comes to handing out punishment? Or has it set a ceiling? read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

The Guardian: Shell’s shame: FSA spells out abuse

Aug 25th, 2004
by John Donovan.
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The Guardian: Shell’s shame: FSA spells out abuse

“Fadel Gheit, an oil analyst at broker Oppenheimer & Co in New York, said the latest revelations from the regulators proved this was a corporate scandal of “historic proportions”. He added: “Short of Enron… I have not seen anything like this in 30 years of covering the market.”

Regulator confirms £17m fine and accuses group of ‘unprecedented misconduct’ in oil and gas reserves scandal

Terry Macalister

Wednesday August 25, 2004

The Financial Services Authority yesterday accused Shell of “unprecedented misconduct” for misleading the markets over the reporting of oil and gas reserves.

The searing criticism came alongside confirmation of a £17m fine for “market abuse” from the FSA plus a further $120m (£67m) from the Securities and Exchange Commission in the United States. read more

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.
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