July 19th, 2007:

 Published: July 19, 2007 at 10:58 AM 
By CARMEN J. GENTILE
UPI Energy Correspondent

A Nigerian activist is calling for Royal Dutch Shell to shut one of its pipelines, saying the company has done little to control the fires burning along it for the last several weeks.

The Movement for the Survival of the Ogoni People — a local activist group — said fires have burned along the line since June and are threatening several communities in the Niger Delta, home to the country’s multibillion-dollar oil and gas industries. read more

July 19, 2007

Dubbed an “honorary Texas oil lawyer” by Time Magazine, records show that Rudy Giuliani’s business ties to Big Oil rival that of another Texas oil man: President George W. Bush. In Iowa today, Giuliani will have to explain how he can “commit” to energy independence when his businesses have profited from the same oil and gas interests that benefit from President Bush’s failed energy policies and the country’s over-dependence on foreign oil.

In addition to netting hundreds of thousands of dollars lobbying for Citgo, the giant oil company which is controlled by Venezuela’s President Hugo Chavez, Rudy’s Houston law firm, Bracewell & Giuliani, also has lobbied on the behalf of Saudi Arabia’s oil ministry and BMB Munai, which develops oil wells in Kazakhstan. In fact, Giuliani’s law firm has operated an office in the Republic of Kazakhstan”to service oil producers and their lenders in the Caspian Sea region” since 1997. [Associated Press, 3/20/07, 5/15/07, Bloomberg, 3/14/07; Newsday (New York), 6/22/07] read more

By Tanya Mosolova
Issue #1290 (56) Thursday, July 19, 2007 
Reuters

MOSCOW — The government has revived the idea of tax breaks for offshore oil and gas deposits, and will discuss it with global oil majors Tuesday following a landmark deal with France’s Total over the huge Shtokman gas field.

The Natural Resources Ministry said Monday that its chief, Yury Trutnev, would meet executives from ExxonMobil, Royal Dutch Shell, BP, Total and Chevron among other firms Tuesday.

“Among the issues to be discussed … will be possible ways for further tax differentiation aimed at increasing inflow of foreign investment into the [resources] sector,” the ministry said. read more

EXTRACT: “We were overoptimistic on budget and underestimated a number of things,” says Malcolm Brinded, Shell’s executive director for Exploration & Production.

THE ARTICLE

Big Oil’s future lies in such forbidding places as Russia’s Far East
 
MAY 15, 2006
 
With their home reserves depleting fast, the big Western giants are increasingly compelled to go to any extreme to find new oil and gas. Sakhalin Island is about as extreme as they come.

Anton Chekhov, who visited in 1890, described the island, then a penal colony, as a hellish place. Even today Sakhalin is a remote, sparsely populated area whose few towns are dominated by shabby Soviet-era apartment blocks and patrolled by packs of semi-wild dogs. read more

By John Donovan

19 July 2007

Earlier this week I sent an email to the senior U.S. Senator for California, Dianne Feinstein, concerning Shell’s unscrupulous commercial relationship with militant activists in Nigeria.

Today, following an email received from the Senator, I have faxed information to her at the United States Senate office in Washington DC.

Related story

Blogger News Network: Is Shell skulduggery in Nigeria pumping up global oil prices?

19 July 2007

EXTRACT: But there is still the prospect of a true surprise. It has been suggested that BP is discussing a friendly merger with Shell, creating a £250bn company that would leapfrog ExxonMobil to become the world’s biggest oil group.

THE ARTICLE

Whatever happened to Lord Browne? Less than three months after BP’s long-serving chief executive bowed out in an oil-gusher of a scandal, Browne has already been largely forgotten. Considering the circumstances of his departure, that probably suits him just fine. read more

 Times News Service
Wednesday, July 18, 2007 10:46:17 PM Oman Time
 
MUSCAT — Irshad Moosa Al Lawati has tendered his resignation as the managing director of Shell Oman. His resignation will come into effect from September 1, 2007. He will take up a senior role elsewhere in the Royal Dutch Shell Group,” Dr Andrew Wood, chairman of the board of directors of Shell Oman Marketing Company said here.

Irshad, however, will remain as a non-executive member of the board. The members of the board of directors place on record the valuable contributions made by Irshad Lawati during his tenure and wish him all the best in his future endeavours. Following his resignation, the board of directors, which met on July 16, appointed Faisal Khamis Al Hashar as the new managing director of the company, effective from September 1, 2007. Faisal is currently an executive director of the company, also serving as the retail general manager. read more

By Tan Hui Leng, TODAY | Posted: 19 July 2007 1233 hrs   

Singapore: Petrol stations may dispense compressed natural gas…

The first one, on Jurong Island, cost $2.6 million to build. The second station, coming up next year on the mainland, is likely to cost much more.

But the refuelling infrastructure for compressed natural gas (CNG) might not have to be built from scratch — and cost so much — if the government can eventually strike a deal with petroleum companies here.

The National Environment Agency (NEA) has been exploring with petrol stations the possibility of dispensing CNG at service stations, Environment and Water Resources Minister Yaacob Ibrahim told Parliament. read more

A study by the National Petroleum Council says shale could help alleviate a future supply shortfall.

By Steve Raabe Denver Post Staff Writer
Article Last Updated: 07/18/2007 11:03:15 PM MDT

Funding to develop oil shale should be increased to help meet a coming shortfall of petroleum, according to a major energy report released Wednesday.

The study by the National Petroleum Council concluded that world demand for oil will significantly outstrip supplies by 2030 and that development of alternative sources such as oil shale may help bridge the gap. read more

14:07 | 19/ 07/ 2007

MOSCOW. (RIA Novosti economic commentator Oleg Mityayev) – Russia will not revise its agreements with British investment companies developing its oil and gas fields because of the sharpening of relations between the two countries, Natural Resources Minister Yury Trutnev said Tuesday.

Trutnev was speaking at a meeting of the working group of the Advisory Council on Foreign Investments attended by representatives of foreign mining companies on July 17. As follows from Trutnev’s words, Russia will maintain its present policy towards foreign investment companies: new fields will be developed under the eye of Russian state-owned companies, but foreign investors will be welcome as junior partners. read more

July 19, 2007 04:40 AM Eastern Daylight Time

Regulatory News:

Nigerian National Petroleum Corporation (NNPC) and Total (NYSE:TOT) (LSE:TTA) (Paris:FP), through its subsidiary Elf Petroleum Nigeria Limited, operator of the NNPC/EPNL Joint Venture with a 40% interest, announce the launch of the Phase 2 of Ofon Field Development Project. The field is located offshore east of Nigeria in OML 102, around 50 kilometres from the coastline, in a water depth of about 40 metres.

Ofon field came on stream in December 1997. The additional reserves (proved and probable) to be developed during this phase are estimated to be over 350 million barrels of oil equivalent. The additional reserves should allow an increase of oil output by around 60,000 barrels per day to around 100,000 barrels per day by the end of 2010. read more

Thu Jul 19, 2007 11:50 AM BST

SINGAPORE, July 19 (Reuters) – Singapore fined Royal Dutch Shell (RDSa.L: Quote, Profile , Research) S$25,000 ($16,500) for safety lapses that led to the death of a worker at its offshore refinery in the city state, local radio said on Thursday.

Singapore radio 93.8 Live said Anglo-Dutch Shell pleaded guilty in court on Thursday, for failing to put in place safe work procedures at its offshore refinery in Singapore.

The 35-year-old worker died after suffering chemical burns on 17 percent of his body in an accident which took place in 2005, 93.8 Live said. read more

Russian transport group Severstaltrans has put its subsidiary, Estonian Oil Service AS (E.O.S.) specializing in fuel oil handling, for sale.

The company has already started the talks with the potential buyers including Shell and TNK-BP. E.O.S. may cost USD40-50 mln. However, the figure may be much less in view of the slump of the Russian transit via Estonia.

http://www.railway-market.pl/?p=wiecej&id=2352

Debating ‘Scheme Liability’

July 19, 2007

For years, Congress, the courts and the Securities & Exchange Commission have struggled to balance the rights of shareholders and companies in securities fraud cases. The latest battle, over whether courts should recognize so-called “scheme liability,” is headed to the Supreme Court this fall in a highly-anticipated case called Stoneridge Investment Partners LLC v. Scientific-Atlanta, Inc., et al.

At issue: whether a plaintiff-shareholder should be allowed to recover not only from a company that commits securities fraud, but also from a third party that participates in a fraudulent scheme. A 1994 Supreme Court decision known by lawyers as Central Bank barred plaintiffs from recovering against a third party alleged to have “aided and abetted” a securities fraud. Since then, lower courts have divided over whether third parties should be held liable for playing a more central role in a fraud. read more

19 July 2007

By John Donovan

On 7 July 2007 a comment was posted on this website by someone using the name of “Jim McGuire” making allegations about Sakhalin Energy. In a subsequent article we referred to the posting and warned the name might be false.  That has turned out to be the case. We have recently been contacted by Jim McGuire, a gentleman who until recently worked for Sakhalin Energy. He has supplied us with evidence confirming his identification and of his former employment with Sakhalin Energy.  Mr McGuire is anxious for it to be known that he most definitely was not the author of the derogatory comments and we accept without reservation that this is the case.  He does not agree with any of the comments made. Someone evidently used his name for malicious purposes.  We are sure based on our discussions with him that Mr McGuire is a man of the highest integrity. Consequently we are pleased to clear his name and wish him well. read more

By Angela Macdonald-Smith

July 19 (Bloomberg) — Woodside Petroleum Ltd., Australia’s second-largest oil and gas producer, said second-quarter sales rose 14 percent, buoyed by the start-up of the A$1.48 billion ($1.3 billion) Enfield oil project off the northwest coast.

Sales rose to A$969.7 million in the three months ended June 30, from A$848 million in the year-earlier period, the Perth- based company said today in a statement to the Australian Stock Exchange. Output rose 9 percent to 17 million barrels of oil equivalent. read more

By Lars Paulsson and Nicholas Larkin

July 19 (Bloomberg) — U.K. natural gas costs fell as forecasts indicated growing supplies may outstrip expected consumption of the fuel today. Gas in mainland Europe and U.K. power prices also dropped.

Gas for same-day delivery declined 4.8 percent to 27 pence a therm at 9:20 a.m. London time, according to prices on Bloomberg from the broker Spectron Group Plc. That’s equivalent to $5.50 a million British thermal units. A therm is 100,000 Btus. Gas for delivery a day ahead fell as much as 9.3 percent to 26.75 pence a therm, according to Spectron. read more

By Dulue Mbachu in Lagos for ISN Security Watch (19/07/07)

When Umaru Yar’Adua assumed office as Nigeria’s new president at the end of May, he pledged that his top priorities would include bringing peace to the country’s troubled Niger Delta oil region, where violence has recently escalated as armed militants and criminals target the oil industry, deeply cutting into Nigeria’s lifeblood crude oil exports and causing jitters in the world oil markets.

At least a quarter of Nigeria’s oil exports of three million barrels per day have ceased in the past 18 months – a period that has also seen the kidnapping of more than 200 foreign oil workers. Most of the hostages have been freed unharmed after ransom payment. Militants fighting for greater local control of the oil wealth produced in the region say they will shut down the entire industry if their demands are not met. read more

Ben Sharples,
Published: Jul 19, 2007

PERTH, July 19 AAP – Woodside Petroleum Ltd has reported a dip in production during the second quarter of 2007, with the trouble-plagued Chinguetti project in Africa continuing to cause headaches.

Woodside, Australia’s largest independent oil and gas producer, delivered an output of 17 million barrels of oil equivalent (Mmboe) in the three months to June 30. The result was six per cent below the 18 Mmboe produced in the first quarter of this year, but nine per cent above the 15.6 Mmboe produced in the corresponding June quarter of 2006. read more

Published: Jul 19, 2007

SYDNEY (Thomson Financial) – Woodside Petroleum Ltd’s first-half sales revenue of 1.869 billion Australian dollars was 19 percent higher than the 1.568 billion dollars it made in the first half of last year, helped by increased production, the company said Thursday.

Woodside, 34 percent of which is owned by the Royal Dutch Shell group, said its second-quarter sales revenue had been 14 percent higher than a year earlier at 970 million dollars.

The company’s first-half production, at 35.0 million barrels of oil equivalent, was 17 percent higher than in the first half of last year. read more

By Ed Crooks

Published: July 19 2007 03:00 | Last updated: July 19 2007 03:00

Yesterday’s report on world oil and gas supplies from the US National Petroleum Council was a defining moment in the history of the global energy industry.

The study, calling on the US to implement such radical measures as the fastest technically possible increase in vehicle fuel economy standards and an international framework for managing carbon dioxide emissions, echoed familiar demands from environmental campaigners. read more

By Jad Mouawad
Wednesday, July 18, 2007

WASHINGTON: It started with a simple question by Samuel Bodman, the energy secretary: “What does the future hold for oil and natural gas supply?”

The query was made in October 2005 in a one-page letter sent to Lee Raymond, the former chairman of Exxon Mobil and head of the National Petroleum Council, a federal advisory group representing the oil industry.

After nearly two years, Raymond has finally delivered his answer. The result is a colossal 476-page study entitled “Facing the Hard Truths About Energy” that involved 350 participants, suggestions from over 1,000 people, submissions by 19 foreign governments from Australia to Saudi Arabia, and dozens of subcommittees. read more

The Associated Press
Published: July 19, 2007

TOKYO: Iran recently asked Japanese refiners Showa Shell Sekiyu K.K. and Cosmo Oil Co. to pay for crude oil imports in yen instead of dollars, a media report said Thursday.

Both refiners are considering the request, Dow Jones Newswires said, citing unnamed company representatives.

Iran has been trying to persuade Asian buyers to make payments in non-U.S. currencies to reduce its U.S. dollar holdings, a move that is seen as a response to the dollar’s recent weakness and to pressure from Washington to limit Iran’s dealings with the U.S. financial system. read more

Published: Thursday, 19 July, 2007, 03:18 PM Doha Time
 
Business Reporter
 
DOHA: Qatar Shell has done a 3D seismic survey covering some 800sq km and drilled two appraisal wells in two offshore blocks allocated to it as part of the multi-billion dollar Pearl GTL project.

Pearl GTL is a joint venture between QP and Royal Dutch Shell and will be the world’s largest gas-to-liquids plant on completion in 2010-11.

The project is Shell’s single largest equity investment anywhere in the world and will produce 140,000 bpd of GTL products as well as 120,000 bpd of condensate, LPG and ethane. read more

By Simon Ebegbulem
Posted to the Web: Thursday, July 19, 2007

BENIN — YOUTHS of Obe community in Orhionmwon Local Government Council of Edo State have threatened to blow up the Shell flow station this weekend, should the state government fail to re-constitute the membership of the newly constituted Oil and Gas Producing Communities Commission and appoint some body from the area as the chairman.

The angry youths had last Tuesday shut down the flow station protesting the composition of the committee but with the intervention of the over one thousand mobile policemen deployed to the area by the state Police Commissioner, Mr Bala Hassan, the flow station was brought back to life against the wish of the youths. read more

Last Updated: 1:55am BST 19/07/2007

The economic links

• The London Stock Exchange is the primary overseas destination for Russian firms seeking to raise capital, with six Russian listings this year worth $12.2bn (£6bn).

• Three Russian flotations worth more than $10bn, including the $8bn listing of Russia’s second largest bank VTB, accounted for half of all money raised in London in the second quarter of 2007.

• Gazprom, the Russian state-controlled energy group, is eager to gain a 10pc share of the British market. It already owns Pennine Natural Gas, the largest privately-owned gas distributor in Britain. read more

(Having lost the arms race, the Kremlin sees an opportunity to reassert dominance through its vast oil and gas reserves)

Last Updated: 1:55am BST 19/07/2007

The row over the murder of Alexander Litvinenko may see commerce suffer as Cold War battles return, writes Industry Editor Russell Hotten

I don’t understand the position of the British Government,” said Russia’s foreign ministry spokesman Mikhail Kamynin. “It is prepared to sacrifice our relations in trade and education for the sake of one man.”
 
That use of the word “trade” will send shivers through companies with Anglo-Russian interests. read more

Thursday, July 19, 2007. Issue 3702. Page 7.
By Miriam Elder
Staff Writer  

Gazprom on Wednesday denied it was seeking assets from merging French firms Gaz de France and Suez, amid speculation that French President Nicolas Sarkozy promised the Kremlin he would support the move.

Analysts expect France to offer a reciprocal to Gazprom after the state-run gas giant’s decision to award French oil major Total a share in developing the coveted Shtokman field last week.

“Regarding the rumors, we deny them,” a Gazprom spokesman said. “Negotiations on buying GDF or Suez assets are not going on.” read more