February 14th, 2008:

February 15, 2008
Antonia Senior: Business Commentary

If you were not already frightened by the prospect of climate change, here is a reason to become very afraid: a multinational oil company has just issued a call for wholesale government intervention and regulation of the energy industry.

Of course, governments already regulate and tax energy on a large scale but this is different. Shell wants government to take charge. It wants politicians to decide what energy we consume and what form it should take, what investments should be made and which technologies should be adopted. read more

Natural resources

Royal Dutch Shell has put on hold plans to restructure its vast oil operations in Nigeria amid concerns that the changes will lead to large job losses. Separately, the oil group called for government intervention in the energy sector on a global scale to achieve reductions in greenhouse gases.

ExxonMobil A US federal judge in Manhattan confirmed the freezing of $300 million (£152 million) held by Venezuela’s state oil company, finding it likely that ExxonMobil, the US oil group, will win a compensation claim against Venezuela over the nationalisation of an oil project. read more

February 15, 2008
Carl Mortished, World Business Editor

Royal Dutch Shell has called for massive government intervention in the energy sector on a global scale in order to achieve reductions in greenhouse gases.

Jeremy Bentham, Shell’s chief economist, said that politics and regulation are the key factors in cutting carbon dioxide emissions. The role of technology is key, but it is not a silver bullet and he predicted nuclear power would play a small role.

Shell reckons that a carbon dioxide price of between €50 and €100 per tonne would drive investment in carbon capture and storage (CCS) schemes, essential to carbon emission reduction. Mr Bentham said that a CO2 price closer to €100 per tonne, more than four times the current price on Europe’s Emissions Trading System, will be needed to launch the initial CCS projects. read more

Richard Wiseman,General Counsel M & A and Project Finance Shell International Limited

Article by John Donovan

Comments in an important judicial handbook published as part of the United Nations Environment Programme, imply that contrary to previous understanding, voluntary Codes of Conduct implemented by multinational corporations may be subject to rights of legal redress.

As a result, it appears that legal remedies for corporate misdeeds may have now reached the doorstep of Shell in relation to its Shell General Business Principles (SGBP) which include the following core principles: – read more

February 14, 2008: 02:33 PM EST

WASHINGTON -(Dow Jones)- Venezuela’s decision to suspend oil shipments to Exxon Mobil Corp. (XOM) won’t necessarily affect global supplies because the country could still ship oil elsewhere, an oil company executive said on Thursday.

“I’m not too worried about it,” John Hofmeister, president of Royal Dutch Shell PLC’s (RDSA) U.S. operations, told reporters. “Oil is traded globally, it moves globally, and for oil to be directed one way or another by arbitrary decrees of a nation doesn’t necessarily change the amount of oil available in the total marketplace.” read more

Thursday February 14 2008
By Simon Webb

DUBAI, Feb 14 (Reuters) – Qatar LNG producer Qatargas is in discussions with its partner Royal Dutch Shell for long term LNG sales to China, a Qatargas spokeswoman said on Thursday.

Qatar is the world’s largest producer of liquefied natural gas (LNG), which is gas chilled to its liquid form for easier transport on specially designed ships. Energy-hungry China is building a string of terminals to receive LNG imports.

“The parties are optimistic about these long term supply discussions from Qatargas to China,” the Qatargas spokeswoman said. “Should these discussions be successful this would be the first long term deal for Qatari LNG to China.” read more

Reuters Thursday February 14 2008
By Alex Lawler

LONDON, Feb 14 (Reuters) – The world’s three largest fully publicly traded oil firms are investing billions of dollars more, but there is little sign yet the extra spending is leading to higher production.

Exxon Mobil Corp., Royal Dutch Shell Plc and BP Plc posted falling 2007 output, even though they upped capital spending to over $60 billion and some expect a further rise this year.

The drop reflects the way higher oil prices reduce the amount of oil companies get under production-sharing agreements with governments, and declining supply from ageing fields in some regions like the North Sea. read more

February 14, 2008: 10:47 AM EST

LONDON, Feb. 14, 2008 (Thomson Financial delivered by Newstex) — Coal will remain one of the world’s main sources of energy over the next 40 years, even replacing oil as the dominant fuel once supply ‘plateaus’ after 2015, said Jeremy Bentham, vice president of Royal Dutch Shell PLC. (NYSE:RDS A)

He told reporters in a news conference coal demand will continue to grow but oil and gas supply is likely to peak sometime between 2015 and 2020. This will occur even at the back of mounting pressure to reduce the use of coal as a measure to curb carbon emissions. read more

Thu Feb 14, 2008 1:30pm EST
By Tom Doggett

WASHINGTON, Feb 14 (Reuters) – The president of Shell Oil Co (RDSa.L: Quote, Profile, Research) on Thursday defended the record amount the company paid the U.S. government to drill off Alaska’s coast, saying it was a “fair price” for leases that will produce much-needed oil and natural gas supplies.

Shell last week bid $105.3 million for a single exploration block in Alaska’s Chukchi Sea, the most ever offered for a single tract in a federal offshore lease sale. Overall, the company offered $2.1 billion in total high bids for 275 tracts the government offered. read more

Thu Feb 14, 2008 11:06am
By Stanley Carvalho and Simon Webb

ABU DHABI (Reuters) – ConocoPhillips has won a contract for a project expected to cost more than $10 billion (5.07 billion pounds) to develop sour gas reserves in the United Arab Emirates, sources at state oil company ADNOC said on Thursday.

The project was one of the largest upstream projects in the past year open to international companies competing for limited access to the Middle East’s oil and gas fields.

“ConocoPhillips is the winner of the project,” said one source at state-run Abu Dhabi National Oil Company (ADNOC), who declined to be identified. “The official signing (of the contract) will take place soon.” read more

By Abigail L. Ho
Philippine Daily Inquirer
First Posted 15:56:00 02/14/2008

MANILA, Philippines — Oil refiner Pilipinas Shell Petroleum Corp. will appeal the Supreme Court’s decision upholding a Manila city ordinance ordering the relocation of the Pandacan Oil Depot by 2013.

“Shell will appeal to the Supreme Court, with the end in view of ensuring continued safe and secure fuel supply. The closure of Pandacan will result in a tight supply situation and supply disruptions are to be expected,” the oil firm said in a statement issued late Wednesday. read more

U.S. regulations and consumer urgency are slow taking hold, experts say

12:00 AM CST on Thursday, February 14, 2008
By ELIZABETH SOUDER / The Dallas Morning News

[email protected]

HOUSTON – Some energy industry insiders don’t sound very optimistic about the prospects of cutting greenhouse gas emissions in the U.S. anytime soon.

Federal regulations on carbon dioxide emissions would take some time to reduce emissions from power plants and refineries, and meeting limits could be costly for consumers. read more

The Associated Press

PARIS: French President Nicolas Sarkozy has asked the head of the International Monetary Fund to consider a tax on oil companies’ profits to help countries without energy reserves, the finance minister said Wednesday.

Christine Lagarde told LCI television that Sarkozy had asked the new IMF chief, Dominique Strauss-Kahn, a Frenchman, to consider a tax that would affect oil companies worldwide.

The decision comes in the wake of announcements of record earnings by many oil majors, boosted by historic crude prices. read more

THE WALL STREET JOURNAL: Total’s Profit Jumps 62% as Oil Prices, Output Rise

By ADAM MITCHELL
February 14, 2008; Page A13

PARIS — French oil company Total SA said net profit rose 62% in its most recent quarter, helped by rising production and higher oil prices, and announced a $2.2 billion investment to expand its Texas refinery.
 
Total, one of the world’s largest non-state-owned oil companies by market value, said net profit rose to €3.6 billion ($5.3 billion) in the fourth quarter of 2007 from €2.23 billion a year earlier. Fourth-quarter revenue rose 19% to €43.19 billion. read more

By Ed Crooks
Published: February 14 2008 01:49 | Last updated: February 14 2008 01:49

Mergers and acquisitions in the energy industry remained robust even during the financial turmoil in the second half of last year, but activity for some types of deal is likely to be weaker this year, according to a survey from PwC, the professional services firm.

Takeovers by companies from emerging markets such as China and India slowed last year and most of the biggest deals involved financial buyers or significant debt financing. Both of those factors are likely to be less evident this year because of tighter credit conditions, M&A advisers believe. read more

By Raphael Minder in Hong Kong
Published: February 14 2008 02:00 | Last updated: February 14 2008 02:00

A fund management company backed by American International Group is planning to sell a 50 per cent stake in InterGen, a power producer, in a transaction that is likely to fetch between $1bn and $1.5bn, according to people familiar with the situation.

The planned divestment comes almost three years after AIG Highstar Capital and the Ontario Teachers’ Pension Plan jointly acquired InterGen for $1.75bn from Royal Dutch Shell, the Anglo-Dutch oil company, and Bechtel of the US. read more

Written by Hector Igbikiowubo    
Thursday, 14 February 2008 

SHELL Petroleum Development Company (SPDC), a subsidiary of Shell Companies in Nigeria has recovered 200,000 barrels per day shut in production from the western Niger Delta raising the company’s total daily output above 800,000 p/d and underscoring the improved security situation in the area. Mr. Mutiu Sunmonu, Managing Director of the SPDC made the disclosure about recovered output while speaking with journalists in Lagos on Tuesday, adding that the security and safety of lives of company staff and stakeholders has always been paramount in the company’s dealings. read more

2008-02-14 00:16:28

An Accra Fast Track High Court on Wednesday struck out an application filed by Shell Ghana Limited (SGL) asking the court to give directions on how the Petroleum Dealers (plaintiffs) should compensate SGL after loosing the substantive case. The court said the one month period given to the Dealers to execute the undertaking to SGL had not expired and therefore the SGL had no grounds to demand those directions.

The court, presided over by Mr Justice K. A. Acquaye adjourned the case to February. 22, this year. Mr Sebastian K. Amoah, Counsel for the Petroleum Dealers prayed the court to reject the application since it was without merit. He also said the application had not been properly filed before the court and as such should not be entertained. read more

Wed Feb 13, 2008 10:06pm GMT 

HOUSTON, Feb 13 (Reuters) – A top Royal Dutch Shell (RDSa.L: Quote, Profile, Research) executive said higher commodity prices and new technology were behind the company’s huge bid to explore in the Chukchi Sea off Alaska’s northwestern coast.

“Commodity prices are in a much different place than they were when we were there many, many years ago, and more importantly, technology (has developed),” said Linda Cook, executive director for gas and power at Shell. “We can now have more confidence about our ability to explore and develop and operate in what will be difficult conditions,” she said. read more