SEPTEMBER 2004 ROYAL DUTCH SHELL NEWS
Wednesday 1 September, 2004
News and information on Shell Plc
SEPTEMBER 2004 ROYAL DUTCH SHELL NEWS
Wednesday 1 September, 2004
Justin Blum and Nell Henderson
Sep 29, 2004
Crude oil prices jumped beyond $50 a barrel yesterday, renewing concerns that sustained high energy costs will further weaken the U.S. economy.
The surge came after rebels in Nigeria threatened to interfere with oil production, upsetting a market already on edge over domestic supply disruptions in the Gulf of Mexico caused by Hurricane Ivan. Lost production and a decline in imports because of the storm led to a reduction in U.S. crude oil inventories.
At the close, U.S. benchmark crude oil for November delivery on the New York Mercantile Exchange stood at a record $49.90 per barrel. Adjusted for inflation, the price was still below its peak in 1981.
DULUE MBACHU
Sep 29, 2004
Militiamen trying to wrest control of the oil-rich Niger Delta threatened to launch a “full-scale armed struggle” on petroleum-pumping operations in Africa’s largest crude oil producing nation, urging foreign oil workers to leave the region.
A military spokesman, however, called Tuesday’s threats “empty.” Major oil companies played down the warnings, saying they won’t seriously affect exports and issuing no orders to staff to pull out.
Sept. 29 (Bloomberg) — CNOOC Ltd., China’s biggest offshore oil and gas producer, said the withdrawal of Unocal Corp. and Royal Dutch/Shell Group from its East China Sea gas venture won’t prevent production from starting up on schedule by mid-2005.
A group led by CNOOC and including China Petrochemical Corp. started drilling in the area in October last year, prompting the Japanese government’s concern that its share of the gas may be siphoned off. The Chunxiao field, the first to be developed in the area known as the Xihu Trough, straddles the border between the nations.
Sep 29, 2004
SAN FRANCISCO (AFX) — Unocal and Royal Dutch/Shell Group said late Tuesday that their subsidiaries have canceled five contracts to explore, develop and market natural gas resources in the Xihu Trough of the East China Sea. Unocal East China Sea, a subsidiary of Unocal and Pecten Orient, a subsidiary of Royal Dutch/Shell, each hold a 20 percent interest in the contracts. China National Offshore Oil and China Petrochemical holds the remaining interest.
The U.S. affiliates entered into the contracts in August 2003. Unocal said it expects to record a charge of roughly $10 million after-tax in the third quarter for relinquishment of lands and to settle remaining obligations.
By Michael Peel in Lagos and James Boxell in London
Published: September 29 2004
Royal Dutch/Shell said yesterday it had suffered its first production loss as the result of violence in Nigeria’s oil-rich and troubled Niger Delta, where a militia leader has condemned oil multinationals and warned foreigners to leave the area.
The military taskforce set up in response to growing violence in the region called for calm but warned militia leaders to “stop stirring internal insurrection” and said “crack teams” of troops were ready to respond to trouble.
By Malcolm Moore, Economics Correspondent (Filed: 29/09/2004)
Oil shot through $50 a barrel for the first time yesterday as the President of Opec admitted the cartel “cannot do anything” to help and warned of a global recession.
Saudi Arabia tried to cool the market by announcing that it would increase its production from 9.5m barrels a day to 11m, but Purnomo Yusgiantoro, the president of the oil cartel, said increased output may not bring down prices. “Whatever we do, there is no sensitivity in the market,” he warned.
By REUTERS
Published: September 29, 2004
LAGOS (Reuters) – A rebel fighting for autonomy in Nigeria’s oil-producing Niger Delta said he would meet President Olusegun Obasanjo on Wednesday to discuss terms for ending the violence that has helped push crude prices to record highs.
Mujahid Dokubo-Asari, who leads a militia called the Niger Delta People’s Volunteer Force, told Reuters a rebel offensive, due to be launched on Friday, would be suspended if an agreement was reached on political autonomy and oil revenues for the impoverished delta region.
DOW JONES NEWSWIRES
September 29, 2004 7:52 a.m.
LONDON — Royal Dutch/Shell Group (RD, SC) said Wednesday its senior management met with Russian Prime Minister Mikhail Fradkov to discuss “growth opportunities” in the oil-rich nation.
A spokesman for Shell in London said the company’s chairman, Jeroen van der Veer, and its head of exploration and production, Malcolm Brinded, met with Fradkov during his visit to The Hague Wednesday.
The spokesman, Simon Buerk, declined to specify which projects were discussed.
DOW JONES NEWSWIRES
September 29, 2004 2:35 a.m.
MOSCOW — Russian Prime Minister Mikhail Fradkov said Tuesday that he will talk to representatives of Royal Dutch/Shell (RD) about the possibility of its investing in the Barents sea gas field Shtokmanov, the news agency Interfax reported Wednesday.
“We will talk to Shell about the possibility of them increasing their presence in Russian assets. We will discuss the possibility of the company increasing its involvement in the Shtokmanov and Sakhalin projects,” the agency quoted Fradkov as saying on arrival in the Netherlands for an official visit.
By Malcolm Moore, Economics Correspondent (Filed: 28/09/2004)
Violent clashes between soldiers and militants in Nigeria pushed the oil price to record highs yesterday as Shell airlifted out its workers.
During trading in London, the price of benchmark Brent crude for November delivery closed up 60 cents at $45.93 a barrel. In New York, the price of light crude was just below $50 as it gained 62 cents to $49.50.
Shell has lost around 30,000 to 40,000 barrels of oil a day from Nigeria as rebels in the Niger Delta fought soldiers. A spokesman for Shell said around 235 non-essential workers had been moved out of the area.
CATRINA STEWART
28 Sept 04
GLOBAL oil prices neared $50 a barrel yesterday, as they climbed to their highest levels on the back of an outbreak of violence in Nigeria.
US light crude oil, the American benchmark, peaked at $49.75 a barrel, its highest level in 21 years of trading on the New York Mercantile Exchange. Brent, Europe’s benchmark crude, also set new records, at $46.28 a barrel.
Prices eased in afternoon trading, but analysts warned that the era of cheap oil was over and predicted that futures would hit $50 a barrel later this week.
By Kevin Morrison
Posted 28 Sept 04
Crude oil hit $50 a barrel in after-hours trading in New York on Monday evening on concern about supply disruptions in Nigeria, where rebels are threatening an uprising in the oil-producing region.
The latest unrest in Nigeria comes when oil markets are already concerned about supply issues in Iraq and Russia.
“While such periodic unrest has become somewhat common, the disturbance comes atop already heightened concerns about supply availability headed towards the northern hemisphere winter,” said Michael Rothman, chief energy strategist at Merrill Lynch.
Published: September 28 2004
Shell, the multinational oil giant, had a multilateral problem.
It recruits across 145 markets worldwide and was having difficulty in creating a consistent global brand strategy. The scenario will be familiar to anybody in recruitment advertising. The company briefs the agency, which creates the ad, which goes back to the client for modification and approval and then back to the agency… and so on. It used to take 10 days and each market did its own thing.
Why, thought Navjot Singh, Shell’s global marketing manager, can’t we create an internally consistent advertisement in a few minutes? The answer was a website, created by Shell in conjunction with the web consultancy Adtool and the agency JWT, which hosts an ad creation toolkit accessible by every Shell office worldwide.
Ashley Seager
Tuesday September 28, 2004
World oil prices set record highs of almost $50 a barrel yesterday as fears of disruption to Nigerian supplies spooked an already tight market and threatened to have a knock-on effect at garage forecourts.
The highest demand for oil in 25 years means global production is stretched to the limit, so news of fresh fighting between government troops and rebels in Nigeria’s oil-rich Delta pushed up prices.
US light crude futures rose 86 cents a barrel to $49.74, breaking the previous record of $49.40 set over a month ago. Brent crude surged 87 cents to a new high of $46.25.
By Tim Digby
Published: September 28 2004
DCC, the Irish sales and marketing group, has agreed to buy Shell Direct UK for €20.1m (£13.7m). The company said the business, which distributes heating oils and transport fuels in the UK, had annual turnover of about €300m and was expected to be “modestly profitable” in the first full year of ownership.
With an estimated working capital requirement of €3m, the total investment cost will be €23.1m.
Shell Direct UK has annual sales volume of about 600m litres and employs 500 people.