FROM OUR AUGUST 2004 SHELL NEWS ARCHIVE…

Michael Harrison’s Outlook: An oil giant’s road from Rajasthan to ruin

“Shell, by contrast, has endured the most humiliating, torrid and damaging period in its 100-year history. It is hard to think of a more spectacular fall from grace or a more abject example of management failure.”: “The deeper it dug itself into this hole, the more Shell was forced to lie” 

Fortunes; Failure; Scramble

14 August 2004

It is a long way from the arid deserts of Rajasthan to the Shell Centre on London’s South Bank. But two events this week provide a link.

One was the announcement by Cairn Energy that it had made yet another significant oil discovery in a region of India hitherto better known for its sumptuous pink palaces and backpacking tourists. The other was the disclosure that Shell’s former head of exploration and production, Walter van de Vijver, is to receive a £2.5m pay-off after being sacked for his part in the company’s reserves scandal. read more

FROM OUR ARCHIVES…

Combined with an oil price higher than ever, Cairn looks to be sitting very pretty. Much to the embarrassment of Shell, of course, which sold the Rajasthan field to Cairn two years ago for just £4m.

18 May 2004

The oilfields of India are proving to be more like gold to Cairn Energy, which yesterday announced yet more success in its Rajasthan site.

The second stage of drilling following its original find has not only confirmed initial expectations but led to an upgrade in its estimated reserves. The lowest hope had been for 50 million barrels from the site; now it is for 100 million barrels.

Combined with an oil price higher than ever, Cairn looks to be sitting very pretty. Much to the embarrassment of Shell, of course, which sold the Rajasthan field to Cairn two years ago for just £4m.
read more

PTT Exploration offered 220 pence for each Cove share, 13 percent more than Shell’s proposal, according to a statement today. Cove surged 21 percent to 235 pence in London trading, indicating investors are betting on further bids.

The giant oil field sold for a song by Shell… it sold its 50% share to Cairn for $7.5 million, now worth billions…

James Ashton 24 Jan 2012

The momentum gained by the Government’s war on executive pay meant it was bound to claim some victims. The only surprise is that Sir Bill Gammell has become its first. As the chief executive of Cairn Energy, he was a stock market darling. The success he enjoyed after buying an unwanted Indian exploration site from Royal Dutch Shell has passed into oil industry folklore.

Cairn, which now has a market value of £4 billion, can thank the £4.5 million acquisition of an Indian exploration site for its good fortune. Sir Bill, a former Scottish rugby international, saw potential there after the big boys had given up trying. A similar spirit has given it the confidence to hunt for oil in far-flung corners of the world such as Greenland. read more

From a Shell retiree

Hello John

You may want to have a look here:

http://www.cairnindia.com/IR/Pages/QuarterResult.

A few years ago Shell got rid of this acreage for peanuts because it was not worth having.

Cairn thought differently….

Extracts from related articles:

(1): Its site in Rajasthan, India, bought from Shell for next to nothing, has turned into a significant oil find. More recently, Cairn has negotiated a deal with India’s Oil & Natural Gas Corporation (ONGC) that allows it to participate in a joint venture to build a major refinery in Rajasthan. Given India’s growing power, this is likely to become a rather valuable asset. read more

THE TIMES (UK): Need to Know

“Royal Dutch Shell, the Anglo-Dutch group, has signed a landmark deal with Gazprom, the Russian gas monopoly, to swap an approximately 25 per cent stake in the Shell-led Sakhalin-2 gas project for a half share in the Zapolyarnoye-Neocomian field, which has an estimated 400 billion cubic metres of gas and 400 million barrels of gas condensate.”

Friday 8 July 2005

Royal Dutch Shell, the Anglo-Dutch group, has signed a landmark deal with Gazprom, the Russian gas monopoly, to swap an approximately 25 per cent stake in the Shell-led Sakhalin-2 gas project for a half share in the Zapolyarnoye-Neocomian field, which has an estimated 400 billion cubic metres of gas and 400 million barrels of gas condensate.

Oil and Natural Gas, India’s state-run company, said that it was planning to build a 150,000-barrel-a-day refinery in conjunction with Cairn Energy, the Edinburgh group. read more

THE TIMES: The great oil rush of 2005

Posted 26 May 2005

By Rhys Blakely, Times Online

Cairn Energy is moving one step closer to unlocking the riches it discovered under a plot of Indian desert bought at a knock-down price from the hapless Shell. If only the rest of the oil sector could put in such a slick performance.

The Scottish minnow turned FTSE 100 oil giant is likely to receive approval from the Indian government to develop its three key onshore fields in western Rajasthan, Platts, the commodities news service, reported this morning. read more

The Times: Cairn’s lucky strike in the oil lottery

““Still, it (SHELL) must have some regrets about giving away a winning lottery ticket.”

Indian find is akin to being given a free ticket and winning the lottery, says the exploration company.

Report by Peter Koenig

Posted August 15, 2004

TEN DAYS ago, on the morning of August 6, Bill Gammell and Kevin Hart, chief executive and finance director of the Scottish oil-exploration group Cairn Energy, arrived at their Edinburgh headquarters distracted.

Gammell, 51, who, to his chagrin, is as well known for his childhood friendships with George W Bush and Tony Blair as for his accomplishments as an oilman, was thinking ahead to a week’s holiday in Fife.

Hart, 35, a refugee from a City job at Deutsche Morgan Grenfell, wasn’t even supposed to be at work — he was meant to be taking the day off. read more

Daily Telegraph: Cairn oil bonanza nets chiefs £4m bonus

“Cairn’s finds in India are a source of continued embarrassment to Shell, which sold its 50pc share in the concession to Cairn for just $7.25m.”

By Christopher Hope, Business Correspondent (Filed: 16/08/2004)

Cairn Energy, the Scottish oil explorer, will take a charge of more than £4m at its half-year results in three weeks’ time to cover the cost of paying out long-term bonuses to its management.

Cairn has been one of the biggest risers on the stock market this year after discovering 1.85billion barrels of oil in northern India. Last week the shares jumped 13pc after Cairn found oil for the fourth time.

Kevin Hart, finance director, told analysts last week that the cost of paying directors’ bonuses under its long-term incentive plan, which is linked to Cairn’s share price, was likely to be £4.3m for the six months to June 30. read more

Sunday Express: All’s well with Cairn in the Indian desert

It was an act of stupidity… You don’t sell off your golden eggs like that. Shell’s loss is Cairn’s gain.”: “Oil minnow’s £4m field is worth billions”

Oil minnow’s £4m field is worth billions, writes Robin Pagnamenta

15 August 2004

THE contrast between the fortunes of Shell and oil minnow Cairn Energy could not be starker. While Shell has been battling to soothe investor concerns about governance and its long-term supplies of oil and gas, Cairn has been moving from strength to strength.

Shares in the Edinburgh-based exploration company have soared since January when it revealed its 5,000 sq km field in India’s Rajasthan desert contained a major oil prospect. read more

 FROM OUR AUGUST 2004 SHELL NEWS ARCHIVE…

The Independent: Michael Harrison’s Outlook: An oil giant’s road from Rajasthan to ruin

“Shell, by contrast, has endured the most humiliating, torrid and damaging period in its 100-year history. It is hard to think of a more spectacular fall from grace or a more abject example of management failure.”: “The deeper it dug itself into this hole, the more Shell was forced to lie” 

Fortunes; Failure; Scramble

14 August 2004

It is a long way from the arid deserts of Rajasthan to the Shell Centre on London’s South Bank. But two events this week provide a link.

One was the announcement by Cairn Energy that it had made yet another significant oil discovery in a region of India hitherto better known for its sumptuous pink palaces and backpacking tourists. The other was the disclosure that Shell’s former head of exploration and production, Walter van de Vijver, is to receive a £2.5m pay-off after being sacked for his part in the company’s reserves scandal. read more

The Times: Big shot: “Another oil discovery in India, another 6 per cent jump in Cairn’s share price.”

August 11, 2004

WHILE Bill Gammell, Cairn Energy’s chief executive, was enjoying his summer holiday at the Fife seaside resort of Elie yesterday, his shareholders were basking in the FTSE’s sun. Another oil discovery in India, another 6 per cent jump in Cairn’s share price.

It has been a stellar year for all associated with Cairn, in particular Edinburgh-based Mr Gammell, who set up the company 24 years ago. Along with Cairn shareholders, who have watched the company’s share price almost quadruple this year, Mr Gammell, 51, can count the good fortune of some astute management. His million Cairn shares are now worth £14 million, a far cry from when he and his senior management team decided to buy Shell’s interest in the Rajasthan exploration block, western India, for £3.9 million two years ago. The move proved Cairn’s making. read more

The Times: Tempus: Cairn Energy: “and yesterday it announced its fourth, from a Rajasthani field it nabbed off Shell for just £4 million two years ago.”

By Angela Jameson

August 11, 2004

CAIRN ENERGY makes discovering oil in India look easy. It has declared three major discoveries in the sub-continent since January alone and yesterday it announced its fourth, from a Rajasthani field it nabbed off Shell for just £4 million two years ago. In that time, Cairn’s shares, up 6 per cent yesterday to £14, have leapt by 283 per cent. But now that the discoveries have been made, investors want to hear how all that oil in the ground can be turned into cash in the bank. Development of the fields will cost hundreds of millions of pounds, but given the City’s appetite for Cairn shares, fundraising should not be a problem. The question is whether Cairn will want to develop its own discoveries. read more

The Times: Need to know: “Cairn Energy… has made its fourth oil discovery in seven months at the western Indian exploration block that it bought from Shell two years ago for just £3.9 million.” read more

Daily Telegraph: City Comment: Cairn sucks Shell dry

Four strikes and Cairn hits big time

Traditionally, Indian elephants have big tusks and small ears. Now the big game hunters at Cairn Energy have discovered a new species, and it’s enough to send the company into the FTSE 100 index next month.

This elephant is black, rather than grey, and is under the ground rather than on it. It is, of course, a big new oilfield, and the timing could hardly be better. Cairn’s latest drilling report means that it has found nearly two billion barrels on just one-tenth of the area of its concession in northern Rajasthan. It plans to drill 15 more wells on the 5,800 sq.km block. read more

The Independent: Bill Gammell: A £2.2bn Indian summer for rugby international who struck black gold

“And Cairn’s success will be all the more satisfying because it came at the expense of the oil giant Shell, which sold it the Rajasthan field for the paltry sum of £4m.

By Saeed Shah

11 August 2004

As a tall, rangy winger who won five caps for Scotland at rugby union, Bill Gammell had achieved more by the age of 25 than most people manage in a lifetime. But sport was only the beginning of the adventure for the Edinburgh-born son of a financier. And yesterday came confirmation that the 51-year-old has struck gold again.

Or, more specifically, black gold. Cairn Energy, the company he set up in Edinburgh after his sporting career was ended by injury, announced its fourth major discovery of oil in Rajasthan, India. Cairn is now worth £2.2bn and stands on the brink of being admitted to the FTSE 100 index of Britain’s leading companies. Mr Gammell’s own share in the company is worth £14m. read more