Too hot to handle? Shell’s Gaza gas field sale hits problems

Bill Campbell Prelude Comment: I might write in more detail but I find it rather ironic that it was this website that was telling the world 6 or so years ago that this installation did not have risk levels as low as claimed and one of the principal risk drivers was the compact nature of a hazardous substances plant with not enough space to swing a cat in. Unless you are not aware I wrote to Shell Australia at the time giving them data from 8 existing or planned onshore LNG plants which varied from 80 to 100 hectares or on average 20 to 22 times the footprint of Prelude, could they tell me as a stakeholder with shares in the Company how they arrived at their ridiculously low number but can guess I assume that a reasonable explanatory reply was not forthcoming, as sure as eggs are eggs if this plant is currently having problems or if it has problems or major accident events in future it will be due to the force fitting a complex plant, with risk levels much above which they have published, on a postage stamp of a footprint. God willing they will never live to regret their fraudulent overly optimistic claims, risk is based on reality not wishful thinking. Bill

Bogus Group: UPDATED SAT 24 AUG 22.00. John, here's the link, can you access from here? https://www.upstreamonline.com/live/1836861/shell-learns-from-prelude-challenges

REPLY FROM JOHN:

Thanks. Problem is that it's behind a paywall and despite it being a great publication for the oil industry, none of us retired folk wants to invest in a subscription.

FURTHER REPLY FROM JOHN

I have received the further Prelude information you have kindly provided and have replied by encripted email.

Bonus Group: Further to Bogus Group's post yesterday. I am absolutely appalled that a Senior Executive of Royal Dutch Shell plc should spout so much nonsense concerning the Prelude installation. The statement is redolent of Malcolm Brinded and his 'Touch F*ck All' policy, which led to the deaths of Keith Moncrieff and Sean McCue on Brent Bravo on 11th September 2003. What is boring is the continuous misleading spin and blather from the top of this company and their lackadaisical approach to safety. 'Chronic Unease' is a well known expression in the Oil and Gas Industry, and that state of mind is far from boring or routine. In fact nothing is either boring or routine in Oil and Gas operations. Rob Jager moved last year to the post of VP Prelude after spending thirteen years as Country Chair and VP for Shell New Zealand/Shell Taranaki, after Shell announced the sale of its New Zealand interests in March 2018. Jager clearly previously has spent too much time being 'laid back' in the fantasy land of Lord of the Rings, marvelling at New Zealand's scenery and wondering who will be entertaining him for his next luxury seafood dinner accompanied by a glass of chilled expensive New Zealand Sauvignon Blanc.

Bogus Group: PLEASE SEE REPLY FROM JOHN WHICH FOLLOWS THE COMMENT FROM BOGUS GROUP More on Prelude article in Upstream.

I’m stunned by what can only be described as idiotic statements. Nothing like the utopia of self-aggrandisement without verification. What is Jagers’ level of technical and operational capabilities? I recall similar rhetoric from BG Group charlatans, with the “best in class” mentality and use of the most overstated expression ever to be used outside the education sector, all aimed at pleasing their taskmasters. Ramp-up of Prelude and what Jager hopes will be decades of “uneventful” and “boring” operation. “This will be a state where little or nothing happens. We have few if any alarms, no surprises and where things are running like clock work and we are effectively in autopilot,” he said. “We will know when we have succeeded in this ambition because Prelude will be recognised as the most boring asset in Shell global portfolio our people will refer to it as the safest and most desirable place to work, and when the rest of the industry is knocking on our door to find out how we have achieved such a best in class outcome, especially for a facility as complex and unique as Prelude.”

REPLY FROM JOHN

Hello, I would be grateful if you could send me a copy of the article via [email protected] using an anonymous email address. I would pass it on to retired Shell EP experts for their assessment.

Peter Voser: Shell may claim to be not responsible for the contractors’ instruction to staff to attend the meeting or loose pay, however, contractors working for Shell have a contractual obligation to comply with Shell’s General Business Principles and its Code of Conduct. Facilitating political rallying and coercing staff would certainly go against that. Disappointing to see these principles are pushed aside when it comes to US politics.

Prelude Upstream Online Article: I would be interested to know the content of the article just published by Upstream Online about the Prelude FLNG problems?

Upstream Online: Shell learns from Prelude challenges

Shell is currently in the process of ramping up its Prelude floating liquefied natural gas development off Western Australia, but the ambitious project …

What I do know is that Prelude is still having difficulties in with the processed volumes of any of the three streams of product, LNG, LPG and condensate. I have been monitoring the Marine Traffic web site with Prelude as the target. The offtake tankers, LNG or condensate, can be seen hanging around but at a greater distance from Prelude making it not as easy to keep track of as in previous occasions. The latest LNG tanker, Symphonic Breeze, has been nearby for nearly a week waiting for its nominated cargo. The demurrage costs must be quite high by now as the "notice of readiness" will have been tabled on arrival.

The pressure on the Prelude Operational Staff must be intense and unrelenting, so much for a plug and play project that Brinded made so much noise about.

LOST CUSTOMER: After reading in the news that workers in our Pennsylvania plant wore FORCED to sit and listen to trump you can count on me PASSING EVERY SHELL station I see. (Comment received via email)

Trump Meeting: Is the payment of workers by Shell to attend a Trump rally appropriate? How does Shell justify it? Is Shell going to pay workers to attend opposition rallies for balance? What's next payment for attending Bolsonaro rallies? (Received via email)

Coersion: Saw news on Shell's practice of coercing union employees into attending a campaign rally with Trump. I used to fill up with Shell gasoline. Will no longer purchase anything from Shell or anything that is in anyway obviously associated with Royal Dutch Shell (Posted comment was received by email)

Bonus Group: Bonus Group has previously mentioned John de Lange, once upon a time VP Well Engineering and Operations BG Brasil, last heard of kicking his heels in Chad as VP Operations for Glencore E&P (Canada) Inc before he fell foul of jackals and going to ground. This very wealthy man by his own admission now finds himself literally in hot water, or more precisely as a director of Geothermie Groep Nederland B.V. This is probably the best outcome for the oil and gas industry as his competency and motives were questionable at best.

USA USA USA: John, thanks for posting the article on the Trump visit to Penn Chem. Most insiders don't think Shell will really want that kind of connection to Trump. But if he asks to come with the EPA administrator and DOE Minister, what can you do, but say yes? Saying no would have resulted in a backlash for sure. Makes it difficult to stay politically neutral. Shell still wants to play both sides on the US agenda, and win regardless of the outcome. This is more troubling for many, as it shows the messaging in EU is low carbon future, in the USA its drill baby drill. It makes your point on culture, that some still seem to doubt.

USA USA USA: it was very interesting to see Shell host President Trump at Penn Chem for Energy Speech that turned into a campaign rally. More interesting that he seemed to take credit for making it happen. https://pittsburgh.cbslocal.com/2019/08/13/donald-trump-in-beaver-county/ Scroll down to the middle and you can watch the full hour speech.

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