From An old EP hand.

Despite the many mistakes and poor management in Shell in the mid 90s leading up to the reserves scandal in 2004,  a truly dark period in the leadership of Shell, we are still proud of some huge projects as shown in the clips.

Perhaps of use for your site. And as you so often point out, the majority of the Shell staff are decent hardworking people doing a good job. The fact that management went off the rails starting with Herkstroter and culminating in the reserves scandal which was an inevitable conclusion of the Phil Watts regime does not diminish the efforts of the engineering by the staff. Even Shell got it sometimes wrong to appoint the right leaders! read more

Expert Opinion on the content of the recent Upstream Online article: “Shell learns from Prelude challenges” 

Rob Jager cannot be as naive as this, he has a  distinguished career in Shell and also been appointed by the New Zealand Government to lead investigations into the tragic Mining accident some years ago.  Clearly not a numpty so why is he making such statements claiming the Prelude is such a magnificent project it will operate perfectly and become boring.

Hydrocarbon Production Operations that I have experienced over many years have never been boring ever.  Every day brings something different to be addressed and Prelude is and will be no different.  Prelude is not receiving a semi-processed feed stack to refine or reform or blend but raw reservoir hydrocarbons.  Even in the case of a rich gas hydrocarbon reservoir, the well effluent will contain a full range of hydrocarbon gas mixtures, carbon dioxide, hydrogen sulphide water vapour and a whole host of trace gasses and other undesirable soluble and insoluble salts.  Notwithstanding during initial production or subsequent well work-over, residual drilling fluids and completion debris some of which will have found its way into the umbilicals and hydraulic well control and safety shut down systems and cause untold havoc. read more

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 …

Extract ends

Printed below are extracts from recent postings on our Shell Blog relating to the above Upstream Online article and its interview with Shell VP Prelude, Bob Jager.

Posting on 19 August 2019

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

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. read more

Ben van Beurden suggested Shell could work with Australia to press for credits for low-carbon LNG exports.

Angela Macdonald-Smith: Senior Resources Writer: Jul 16, 2019 — 7.00pm

Shell’s global chief executive Ben van Beurden has declared a global carbon price of about $US250 a tonne and “tens of thousands” of carbon capture and storage plants would be needed for the world to keep within the 2 degree warming goal.

Nature-based carbon offsets “to the tune of the Amazon” and a “massive” electrification of energy supply would also be needed he said in Sydney, ahead of a meeting with Prime Minister Scott Morrison where energy and climate policy – and the troubled east coast gas market – were set to be discussed. read more

Royal Dutch Shell confirmed that there was no impact to operations at the Prelude floating LNG facility as a result of the earthquake. The company had earlier declined to comment.

JULY 15, 2019 

MELBOURNE, July 15 (Reuters) – Oil and gas operations onshore and offshore Western Australia were unaffected by a magnitude 6.6 earthquake that struck off the northern coast of the state on Sunday, the country’s offshore petroleum safety regulator and companies said.

“NOPSEMA has not received any reports of impacts to offshore oil and gas facilities following the earthquake,” a spokesman for the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) said. read more

Second LNG cargo from Prelude

Overnight intelligence information about Shell Prelude sent to retired Shell International HSE consultant, Bill Campbell

It looks as though there is still “trouble at mill” as its almost 24 days since the first cargo which would suggest around running at 25% capacity. read more

JUNE 19, 2019

MELBOURNE, June 19 (Reuters) – Royal Dutch Shell sees more opportunities for floating liquefied natural gas projects, but not necessarily like its $17 billion Prelude operation off Australia, which shipped its first cargo last week, over two years behind schedule.

Shell Australia Chair Zoe Yujnovich said on Wednesday that it was too early to tell whether Prelude, one of two floating LNG (FLNG) projects in the world, would be replicated in future, as the company was still commissioning the project. read more

FOUR DIFFERENT ARTICLES REPORTING ON FIRST PRELUDE LNG CARGO: TUESDAY 11 JUNE 2019 

Sonali Paul: 11 JUNE 2019

* Prelude seals Australia as world’s top LNG exporter

* Prelude marks last of Australia’s $200 bln LNG construction boom

* Start-up comes amid glut in LNG market

* Rival Ichthys LNG could sap some Prelude gas reserves (Adds comment on Prelude gas sources)

By Sonali Paul

MELBOURNE, June 11 (Reuters) – Royal Dutch Shell on Monday shipped the long-awaited first cargo of liquefied natural gas from its massive Prelude floating LNG plant off northwest Australia, sealing the nation’s position as the world’s top exporter of the fuel. read more

Alarming Facts About Shell Prelude Problems Emerge in Official Australian GOVERNMENT Report – Notifiable Incident 

Extracts from official report…

Dangerous Occurrence

Summary

Operator advised the offload tanker (LNGC Gallina) was alongside the facility. At 1940hrs during routine checks in preparation for the connection of the loading arms it was identified that one of the forward mooring lines had parted. At 1950hrs following further checks, concerns were raised over the condition of other forward mooring lines. At 1958hrs a decision was made to carry out a controlled release of the vessel. At 2015hrs the vessel left the facility and returned to the holding area. An investigation will be conducted of the matter. Cronin tried to return the operators call but could not get through or leave a message. read more

PLEASE READ IN CONJUNCTION WITH FURTHER EXPERT COMMENT AND THE INVESTIGATIVE RESULT DOCUMENT AT THE FOOT OF THIS ARTICLE…

• AuthorEric Yep
• EditorJames Burgess
• CommodityLNG,  Natural Gas
• 07 Jun 2019

Singapore — The 97,730 dwt LNG tanker Valencia Knutsen has been circling near Shell’s Prelude FLNG vessel to load the first LNG cargo from the facility in Western Australia, according to Platts trade flow software cFlow.

The Spanish-flagged Valencia Knutsen departed the port of Darwin on June 2 and has been in the vicinity of Prelude FLNG since June 3, Platts cFlow showed.

The loading of the first LNG cargo will mark the startup of exports from one of the world’s most anticipated LNG projects, also the world’s largest floating LNG platform, adding to Australia’s LNG export capacity. read more

FURTHER EXPERT SPECULATION ON THE ARTICLE: Shell’s giant floating LNG facility Prelude set to ship first cargo when mooring issues resolved

The mooring failures are indeed a concern but it is very doubtful they were the main contributor to the startup delay even if they are “shoehorned” into a very congested construction.

The process design is a well proven, a design in use in many of the LNG plants in many countries. read more

The article below was brought to my attention by industry experts, one of whom made the following comment:

XXXXX was shocked when he read this as the damage to the mooring system was much worse than he originally thought from reports, it appears it may have been the mooring system that has caused delays not so much the process.

The giant Prelude floating LNG facility is close to exporting its first LNG, almost two years after it arrived in Australian waters from Korea during which it has had several problems bringing vessels alongside.

Shell director of gas and new energies Maarten Wetselaar yesterday told investors that Prelude had been producing LNG for more than a week and the first shipment of LNG was imminent.

The Spanish LNG carrier Valencia Knutsen, which was moored off Darwin for some days, yesterday moved to the vicinity of Prelude, 475km north-east of Broome, according to vessel tracking site Marine Traffic. read more

JUNE 4, 2019

LONDON, June 4 (Reuters) – Shipment of the first liquefied natural gas (LNG) cargo from the long-awaited Prelude floating production project in Australia is “imminent”, Royal Dutch Shell said on Tuesday.

Prelude – the world’s biggest floating LNG production unit and the biggest maritime vessel ever built – is expected to have an annual LNG production capacity of 3.6 million tonnes.

It will also produce 1.3 million tonnes a year of condensate and 400,000 tonnes a year of liquefied petroleum gas (LPG). read more

Reading Rob Jäger, who I knew in Shell many years past, is like listening somewhat to my comments about Prelude starting way back in 2012 or so being replayed and replayed………suddenly, everything is not so tickety-boo. Think it’s telling that this historically proud, nay boastful and confident project so sure and aware of itself in the past is so reluctant to give a firm start-up date for LNG and so reluctant to just tell the world why?

By retired Shell Global Safety Consultant, Bill Campbell

Just some background thoughts, we all wish this project well but there is a lot that doesn’t appear to stack up in the Jager piece

Reading Rob Jäger, who I knew in Shell many years past, is like listening somewhat to my comments about Prelude starting way back in 2012 or so being replayed and replayed………suddenly, everything is not so tickety-boo.  Rob talks about safety and risk so underplayed before, he talks about large vessel but small area for LNG plant so underplayed before, he talks about risk almost discounted before because Prelude was so safe , now Safety, safety is the key, its the first project by the way in the long history of Shell that is in his words NOT driven by milestones and schedule, sorry don’t believe a word of it. read more

Shell veteran Rob Jager had been contemplating retirement in his native New Zealand when he got called up to take responsibility for the world’s biggest offshore facility.

When he arrived in Perth in November, Shell’s 488m-long Prelude floating LNG project had been moored to the seabed off the Kimberley for 12 months and was yet to produce.

Six months later, Prelude has produced condensate. It is still to churn out LNG but when Mr Jager,right, talks about the project there is one point he makes above all else: “We’re not driven by milestones, we’re not driven by schedule, we’re driven … to make sure that it’s safe to start up.” read more

RETIRED SHELL CHIEF SAFETY OFFICER: Royal Dutch Shell (RDS) has gained its reputation as an organisation with no morality that if it can get away with it will lie repeatedly even when trapped by its own evidence, by its own falsehoods. It seems based on its track record RDS has no justification to support its protestations about public authorities using whatever legitimate means they can to dig out from the corruption cesspit the truth.  

By Bill Campbell [from 1996 to retirement Upstream Senior Maintenance Engineer, Global Consultant on this and Techical and Finance audits before retirement as SIEP Audit Manager]

Re the article on the Moerdijk explosion and the Dutch prosecutors getting to the truth don’t you think it’s a bit rich that RDS protests? Royal Dutch Shell (RDS) has gained its reputation as an organisation with no morality that if it can get away with it will lie repeatedly even when trapped by its own evidence, by its own falsehoods. read more