News and information on Royal Dutch Shell Plc
Nick Fletcher
Saturday December 30, 2006
Oil prices eased below $60 in the US for the first time for a month leaving BP, 4p lower at 567.5p, and Royal Dutch Shell down 7p to £17.85. Shell was also hit by reports the company and its partners would have to stump up a third of the $10bn overrun on the controversial Sakhalin-2 gas project in eastern Siberia.
http://business.guardian.co.uk/marketforces/story/0,,1980260,00.html
By Josephine Moulds
Last Updated: 12:58am GMT 30/12/2006
FTSE falls on a quiet day ahead of break
City trader
Oil stocks were down on a weaker crude price as traders disregarded a sharp drop in US crude stockpiles on Thursday night. BP slid 4 to 567½p. Royal Dutch Shell was hit by news that it will be made to foot the bill for huge cost overruns at the Sakhalin-2 oil and gas project in Russia together with its two Japanese partners. It retreated 12p to £17.90. BG Group, which on Thursday announced it had bought a US power plant, lost 4½ to 693p.
• Shares of Exxon Mobil, the world’s biggest corporation, had their largest annual increase since 1980 as the company boosted oil production and crude prices rose to an all- time high.
• Royal Dutch Shell will cut its proven oil and gas reserves by more than 4pc when it gives up half its stake in Russia’s Sakhalin-2 venture, analysts said.
• Gazprom, Russia’s natural-gas export monopoly, is continuing talks with Belarus to avoid a Jan. 1 cutoff that could curb deliveries to Europe.
By Stephen Voss and Torrey Clark
Dec. 29 (Bloomberg) — Royal Dutch Shell Plc, Europe’s largest oil company by market value, will cut its proven oil and gas reserves by more than 4 percent when it gives up half its stake in Russia’s Sakhalin-2 venture, analysts said.
The equity transfer to state-run Russian energy company OAO Gazprom is expected to be completed by the end of February, and may not be reflected in Shell’s reserves number for the end of 2006. Shell reports proven reserves once a year, usually around March, giving yearend totals for various geographical areas.
By Jim Polson
Dec. 29 (Bloomberg) — Centurion Energy International Inc., the Canadian oil and gas producer that’s being acquired by a United Arab Emirates-based energy company, announced the termination of plans by Royal Dutch Shell Plc to help it explore for natural gas in Egypt’s Nile Delta.
The two companies mutually agreed to end an accord under which Shell would have paid $15 million for a 50 percent stake in two gas blocks, West Manzala and West Qantara, Calgary-based Centurion Energy said in a statement today.
WASHINGTON, Dec. 27 /PRNewswire-USNewswire/ — FreeEnterpriser.com today announced the “Five Worst CEOs of 2006” — a review of the worst CEOs of the year.
“Despite this year’s bull market, 2006 was a banner year for CEOs who are undermining free enterprise, free markets and capitalism,” said Tom Borelli, editor of FreeEnterpriser.com.
“Instead of relying on innovation and unfettered competition as guiding principles for maximizing shareholder value, the “Five Worst CEOs of 2006″: (1) sought government regulation as a means of generating profits; (2) used shareholder assets to advance their personal hobbies and enhance their stature in elite social circles; and (3) deflected criticism by allowing anti-business activist groups to hijack company resources and influence business decisions,” said Steve Milloy, executive director of the Free Enterprise Education Institute.
Published: Dec 28, 2006
SAKHALIN II PSA: EXTRACT: ‘Delyagin alleged that the deal was murky and could discredit Shell if investigated properly. ‘
The director of the Moscow-based Institute of Problems of Globalization, Mikhail Delyagin, has sharply criticized Gazprom’s decision to raise the price for Russian gas exported to Belarus 4.3-fold from 1 January 2007.
“The only thing our government has on its mind is cash,” Delyagin said in a live interview broadcast by Ekho Moskvy radio on 28 December. “These people have learnt no lesson” from the gas conflict with Ukraine in the beginning of 2006, he went on to say. Belarusian President Alyaksandr Lukashenka will simply start to siphon off gas intended for Europe. It would be easier for Minsk than it was for Kiev, because Lukashenka, unlike the present Russian or Ukrainian leadership, “does not need a house on Sardinia or in Paris but fights for the interests of his country,” he said.
Published: Dec 28, 2006
Royal Dutch Shell PLC announced Thursday that one of its Brazilian offshore oil fields is commercially viable and that two deep-water areas of the block have been identified for development.
Europe’s second-largest oil company did not say when production would begin in the BS-4 block or offer yield estimates, but the field has estimated reserves of about 300 million barrels of very heavy crude.
Shell is the lead operator of the block with a 40 percent stake. Brazil’s state-owned Petroleo Brasileiro SA also has a 40 percent stake, and U.S.-based Chevron Corp. holds 20 percent.
By: DAN CATERINICCHIA,
Published: Dec 28, 2006
The kidnappings and armed attacks plaguing oil companies operating in Nigeria’s oil-rich Niger delta are among the top security challenges U.S. businesses are likely to face in 2007, a State Department official said Thursday.
“We’re keeping our eye on Nigeria right now,” Doug Allison, a special agent with State’s Bureau of Diplomatic Security, said in a phone interview. “That situation seems to be not getting any better.”
EXTRACT: After the recent tensions over the Sakhalin development between Shell and Gazprom, there were doubts about whether Russia would be willing to develop stable relationships with foreign investors, a fear that was dismissed by Stephen O’Sullivan of Deutsche Bank in Moscow, who has followed the battle closely. The scale of pressure on Shell developed after it announced that the cost of the project, which the Russian state must first pay off before it receives a full dividend, shot up from $10 to $22 billion, he points out. “Along comes Shell with this huge cost overrun, so it gave the government a stick,” he argues.
Shell has hired the former US interior secretary Gale Norton as general counsel for its “unconventional resources” division. Ms Norton will provide and co-ordinate legal services for the division, which develops technology to get oil from sources such as oil shale.
By Barney Jopson
Published: December 29 2006 02:00 | Last updated: December 29 2006 02:00
The average size of fines doled out by the City watchdog dropped in 2006, but the total number of penalties edged up from the previous year.
The Financial Services Authority collected just over £13m in fines from 25 cases this year, with the average penalty working out at around £520,000.
The average fine in 2005 was about £860,000 as the regulator collected £16.3m from 19 cases.
The figures reflect the performance of the FSA’s en-forcement division in its first full year under the leadership of Margaret Cole, a litigator recruited from White & Case.
By Chris Hughes
Published: December 29 2006 02:00 | Last updated: December 29 2006 02:00
Sakhalin throws up a fresh disappointment
Shell suffered a blow when it was forced to surrender control of Russia’s Sakhalin-2 oil field to state-backed Gazprom last week. Now the Anglo-Dutch oil group faces fresh embarrassment in defeat.
To re-cap, Shell sold half of its 55 per cent stake in Sakhalin to Gazprom to revive the project that Russia had grounded citing environmental reasons. The price Shell received – following months of wrangling – was better than many had expected. That helped Shell preserve some dignity despite losing control.
By Arkady Ostrovsky in Moscow and Ed Crooks in London
Published: December 28 2006 18:44 | Last updated: December 28 2006 18:44
Royal Dutch Shell and its two Japanese partners are to be made to share the burden of the huge cost overruns of Sakhalin-2, it emerged on Thursday, in news that cast a less favourable light on their deal to cede control of the project to Gazprom.
Just days after confirming that Russia would pay the companies $7.45bn to establish its controlling stake in the project, the government said it would require the three foreign owners to meet $3.6bn of the additional costs of Sakhalin-2 themselves.
Last Updated: 1:34am GMT 29/12/2006
• Centrica, the UK’s biggest energy supplier, said four employees were among six people who died in a helicopter crash this week in the Irish Sea, in Morecambe Bay off the coast of north-west England.
• Gazprom, Russia’s natural-gas export monopoly, is in talks with Belarus to avoid a possible January 1 halt in shipments that would cut deliveries to Europe for the second time in a year. Belarus has threatened to block supplies after the price for gas for itself rose.
(Paying the cost overruns, part of a secret protocol, will allow spending on the Sakhalin project to be increased)
By James Quinn
Last Updated: 1:34am GMT 29/12/2006
Royal Dutch Shell and its two Japanese partners are to be made to foot the bill for huge cost overruns at the Sakhalin-2 oil and gas project in Russia.
Shell – along with partners Mitsui and Mitsubishi – are set to cover $3.6bn (£1.8bn) of costs on the project just a week after agreeing to sell half their stakes to Russia’s Gazprom for $7.45bn in cash.
Paying the cost overruns, part of a secret protocol, will allow spending on the Sakhalin project to be increased
: They really are useless little or no customer service. If you do get to talk to someone they haven't got a clue how to solve things. Never been happy since first signing. I never thought I would admit this but they make TalkTalk seem good. I am now fighting against the cost of 39 po7nd because I haven't returned it. Once again they are lying saying they sent out a self addressed envelope for the return of the modem. Must have got lost in the post.Also my contract ended 8th January it is now 24th and they only just let know. As a company they are devious untrustworthy and morally corrupt. They DO NOT deserve even 1 customer
: 29th July 2020 Tailwind Energy Investments Ltd (Co. Reg. No.12776446) was incorporated with one ordinary share of £1 issued to Tailwind Energy Holdings LLP (Co. Reg. No. OC430905) for a consideration of £1 23rd December 2020 Tailwind Energy Investments Ltd issued 290 shares of £1 each to Tailwind Energy Holdings LLP in return for 290 shares of NSV Energy Ltd (Co. Reg. No. 06220464) representing a 100% interest in that entity. Following the transaction, Tailwind Energy Holdings LLP became the parent company of Tailwind Energy Investments Ltd. On the date of issue, the shares of NSV Energy Ltd were valued at $479.9 million resulting in the recognition of an investment of $479.9 million. On 1st November 2021, Tailwind Energy Investments Ltd declared a dividend of $36.4 million. Tailwind Energy Investments Ltd entered into an agreement with its now subsidiary NSV Energy Ltd to pay the dividends directly to its parent's ultimate shareholders. For the period ended 31st December 2021 Tailwind Energy Investments Ltd recorded a profit of $36.4 million arising from a dividend declared by its subsidiary in November 2021. Dividends of $36.4 million ($125,245.7 per share) were declared by Tailwind Energy Investments Ltd for the period ended 31st December 2021. Companies House records show for Tailwind Energy Holdings LLP under 'People' the following: Cavendish Energy Holdings Ltd (Co. Reg No.12154073) Mecuria Asset Holdings (Hong-Kong) Ltd A Private Ltd Company Mercuria Holdings (UK) Ltd (Co. Reg. No. 123718128) Companies House Records show that Tailwind Energy Holdings LLP is the 'Designated Member' and only 'Designated Member' for each of the above three companies. There is a 'circularity' here that does not seem correct. Where did the dividend go? Tailwind Investments Ltd Annual Report and Financial Statements period ended 31st December 2021 indicates Page 16 7. Tailwind Energy Investments Ltd is a wholly owned subsidiary of Tailwind Energy Holdings LLP itself a 51% subsidiary of Cavendish Energy Holdings Ltd (Co. Reg. No. 12154073) . Cavendish Energy Holdings Ltd is also the ultimate parent company and ultimate controlling party which prepares consolidated financial statements. Companies House Records show under 'Appointments' for Cavendish Energy Holdings Ltd that Tailwind Energy Holdings LLP is the 'Active LLP Designated Member'. Where did the $36.4 million dividend go?
: Thanks to Wrath for the clarification. I recall a lot of competent and committed people at BG Group, I also recall a toxic culture among those aspiring to climb the leadership “greasy pole” at all costs. If Mr Gould’s disparaging comments were not aimed at the latter group, it’s no surprise the meeting ended on a low note. These are the people that set targets, but if they can’t perceive how to deliver, someone (not them) has to be held to account. Seems like the pressure was being felt regarding Queensland Curtis LNG and the toxic ‘blame culture’ was in full-swing. I understood the cost overrun on this project was in the region of £3.3bn, which is surprising as their General Counsel at the time had written the highly regarded book ‘Project Finance’. It must have been left behind in TVP in preference for “back-end loading”.
: In response to Bogus Group's enquiry. The reference to Contractors being given 'equal' status to Employees refers to a speech given by Andrew Gould, then Executive Chairman of BG Group, at a Townhall meeting in the BG cafeteria in the Hutton Building, Thames Valley Business Park, in Q4 2014. At that Townhall meeting Mr Gould, during his speech to the assembled staff, made many references to 'you' (meaning BG Group Staff) failing to meet targets. (A Freudian slip, perhaps, given his ambition for a knighthood?). Eventually, a senior staff member in the audience corrected Mr Gould and said that he (the senior staff member) would feel happier if Mr Gould used the pronoun 'we' instead of 'you', at which point Mr Gould accepted the criticism and corrected himself. During that speech, Mr Gould also said that it was vital that BG Group meet their targets, especially first export of QC LNG coalbed methane to LNG, by year end. In order to achieve this he said that BG Group Contractors would have 'equal' status to BG Group Employees i.e. 'all hands to the pumps'. That meeting was recorded. Shell makes $70bn BG offer (oedigital.com) It was at the end of that meeting, that Sami Iskander, then Chief Operating Officer, stood up and to whoever would listen as they 'fled' the cafeteria with their ears burning made the statement that BG Group, the previous year (?) had spent £200MM assuring work which later cost the company £2Bn because it was wrong.
: Would like to hear more on the thread of these interesting comments. Contractors were not always on ‘equal status’, particularly when it came to safety. In the BG Group 2010 annual report, Chapman’s statement that contractor safety would be a particular focus in 2011, seemed to infer that contractor performance was the issue, however, BG Group were ultimately responsible for those at the worksites, including contractors. In 2012, his “deep regret” of the unacceptable safety performance deterioration in 2011, would appear to indicate the “particular focus” was misconceived.
: Andrew Gould, former Executive Chairman of the failed BG Group, whose motives were questionable, would be well reminded that putting contractors on equal status as company employees in order to meet 'stretch' targets is in direct conflict with the 'Constitutions' of the various 'Bodies Corporate', despite alignment through 'bridging' documents.
: Technical safety across the board has suffered a similar mindset... "as long as it doesn't blow-up on my watch, it's <>." the new SEAM organization has made it abundantly clear, that safety has to be in "balance with business drivers of production and affordability." When it eventually goes boom, it will be blamed on TSE not the folks who are sweeping the concerns under the rug. the new emperors have no clothes!
: Subsurface Technical Staff at Shell who previously worked for BG Group would be well advised to remember that reserves should not be booked on subjective technical workflows and furthermore that both the technical workflows used in calculating reserves and their results should be reproducible by the Auditors. The BG philosophy of 'it's alright as long as the oil and/or gas is flowing out of the ground and we don't know where it is coming from' is irresponsible, short sighted and to the detriment of Shell's shareholders. This attitude should be dropped pronto!
: Internet down 3 times for a day at a time. Reported it never had any contact back or reason given. Useless company out at end of contract.
: RE: Nigerian oil export terminal had theft line into sea for 9 years Sometimes I think I have seen it all and then this comes along Nigeria is simply doomed with all the corruption. Take it from me, this is a major operation to fix. So the top brass must have been involved. Half or more of the population is scratching a living in miserable circumstances, there is no more rule of law and these gangsters lay a pipeline from a terminal and steal oil. Simply beyond what I can imagine.
: They cut off my 87 year old moms phone. This isn't just a phone for people of that age its and essential lifeline. After spending an hour on hold I eventually got through to the customer service department. They said a bill hadn't been sent because of billing issues. That's why it wasn't paid. So, I settled the bill over the phone. The following day the service was resumed and a demand for the money paid over the phone was sent to her house. How incompetent are these people. I spent another hour on hold. No reply to the call at all this time. No response to my emailed complaint. Obviously I now have to find another provider. But a lot of stress for my mother. DO NOT DEAL WITH THESE PEOPLE. They are the worst of the worst. Date of experience: 10 September 2022
CUSTOMER COMMENTS ABOUT SHELL ENERGY RSS Feed
EBOOK TITLE: “SIR HENRI DETERDING AND THE NAZI HISTORY OF ROYAL DUTCH SHELL” – AVAILABLE ON AMAZON
EBOOK TITLE: “JOHN DONOVAN, SHELL’S NIGHTMARE: MY EPIC FEUD WITH THE UNSCRUPULOUS OIL GIANT ROYAL DUTCH SHELL” – AVAILABLE ON AMAZON.
EBOOK TITLE: “TOXIC FACTS ABOUT SHELL REMOVED FROM WIKIPEDIA: HOW SHELL BECAME THE MOST HATED BRAND IN THE WORLD” – AVAILABLE ON AMAZON.
This is not a Shell website. That fact should be abundantly plain from the overall content of this home page and our sister Shell focussed websites, including shellnazihistory.com. Click on the Disclaimer link at top of this page for more information. You Can Be Sure Shell does not endorse or approve of this website. There are no subscription charges nor do we solicit or accept donations. It is an entirely free to use website drawing attention to the negative side of Shell while also publishing positive news about the company. The Shell logo image with the white text used on this website, as per the above example, is in the public domain because its copyright has expired and its author is anonymous. It can be found here on WIKIMEDIA COMMONS. Our shellenergy.website republishes Shell Energy customer complaints posted on Trustpilot where there is an ample supply. Use this link for Shell’s own website.
See our link list of over 500 articles by the FT, Wall Street Journal, Reuters, Bloomberg, Forbes, Dow Jones Newswires, New York Times, CNBC etc, plus UK House of Commons Select Committee Hansard records, information on U.S. Securities & Exchange Commission website etc. all containing references to our Shell focussed websites, or our website founders Alfred and John Donovan. Includes TV documentary features in English and German, newspaper and magazine articles, radio interviews, newsletters etc. Plus academic papers, Stratfor intelligence reports and UK, U.S. and Australian state/parliamentary publications, also citing our Shell websites. Click on this link to see the entire list, all in date order with a link to an index of over 100 books also containing references to our non-profit websites and/or our activities.
John Donovan, the website owner
