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Posts from ‘November, 2009’

Shell: Talks On Sale Of European Refineries To Essar Extended


NOVEMBER 30, 2009, 5:55 A.M. ET

LONDON (Dow Jones)–Exclusive talks between Royal Dutch Shell PLC (RDSB.LN) and India’s Essar Oil Ltd. (500134.BY) over the sale of three European refineries will continue for an unspecified period beyond Monday’s deadline, a Shell spokesman said.

“Shell and Essar jointly confirm that negotiations for the sale and purchase of our three refineries at Stanlow and Germany will continue beyond the end of November,” the spokesman said.

As part of plans to sell 15% of its global refining capacity, or about 600,000 barrels a day of capacity, over the next three years in a restructuring program, Shell is selling the Heide and Harburg refineries in Germany and the Stanlow plant in the U.K. read more

Cold wind rules don’t apply to Shell Fat Cat bonuses

Financial Times

Oil and gas chiefs win bonuses in spite of missing their targets

By Carola Hoyos, Chief Energy Correspondent

Published: November 30 2009 02:00 | Last updated: November 30 2009 02:00

Several oil and natural gas companies in the US and Europe boosted their chief executives’ remuneration last year, in spite of often missing performance targets or other measures of investor value, data collected by the Financial Times show. read more

Carbon trading could be worth twice that of oil in next decade

Peter Voser, Shell's chief executive, has called on governments to introduce a carbon tax or a minimum price for CO² because – as he told the Guardian – the ETS was failing to deliver sufficient incentives to kickstart expensive technologies such as carbon capture and storage (CCS).

Caltex Shares Up 6.1% On Hope Of ExxonMobil Deal Approval

In an interesting observation, Macquarie's Wood said that blocking the deal would make it hard for Australia's federal government to push Caltex to buy ExxonMobil and Royal Dutch Shell Plc's Australian refining assets on energy security grounds, if they should decide to sell them.

Shell axes 100 Australian workers in restructure


Monday 30 November 2009

About 100 Shell Australia employees will lose their jobs under a company restructure.

Shell employs about 3,000 people across the country and has refineries in Victoria and New South Wales.

Spokesman Paul Zennaro says the job losses will not be concentrated in any specific area of the company.

“We’ll implement a simpler business model with quicker decision-making and be better able to serve our customers,” he said.

“Unfortunately, as part of that Shell expects about 100 people or about 5 per cent of our workforce to be made redundant as part of the reorganisation of our business.” read more

Poisonous legacy of Motiva Delaware City Refinery

The refinery's various owners have been investigating soil and groundwater contamination for decades under state and federal oversight. Serious groundwater pollution problems extend as much as 180 feet underground, and more than a mile south of the property. Some of the site's worst pollution problems remain the responsibility of Premcor and Motiva Enterprises, the refinery's previous owners...

Shell plans restructure in Australia

ABC News

Monday 30 November 2009

The oil and gas company Shell is restructuring some of its Australian business.

A new role has been created to lead the local petroleum manufacturing operations, and the company will conduct a reorganisation of the business next year.

It is understood staff at company headquarters in the Melbourne suburb of Hawthorn will be informed of the proposal today.

Shell employs about 3,000 people in Australia, with refineries at Geelong in Victoria and Clyde in New South Wales. read more

Shell reins back its biofuels expectations

Financial Times

By Ed Crooks

Published: November 29 2009 19:49 | Last updated: November 29 2009 19:49


Advanced biofuels will not be in widespread use until about 2020, the chief executive of Royal Dutch Shell has said, puncturing hopes that they could be on the verge of a commercial breakthrough. read more

Peak oil: the summit that dominates the horizon

The big international companies such as BP and ExxonMobil are struggling to find enough new oil to replace their exploited reserves year-on-year and Shell found itself on the end of a major fine for exaggerating its reserves report to the Securities & Exchange Commission in the US.

Pump It Up: The Development of Iraq’s Oil Reserves

By Vivienne Walt Monday, Dec. 07, 2009 Walking the line: Iraqi police patrol a vulnerable oil pipeline feeding a southern refinery Nabil al-Jurani / AP

In the spring of 2003, more than a million people marched through the streets of cities across Europe and the U.S. to rail against U.S. plans to invade Iraq and oust Saddam Hussein. Amid the chants for peace was an angry accusation: the war was merely a grab by Western companies for Iraq’s vast oil reserves.

Nearly seven years on — and after more than 4,600 Americans and tens of thousands of Iraqis have been killed — Iraq’s natural resources are only now emerging as spoils of war. As U.S. troops prepare to withdraw from the country next year, some of the world’s biggest energy companies, among them ExxonMobil and Royal Dutch Shell, are racing to lock up multibillion-dollar deals with officials in Baghdad that will allow them to exploit the country’s giant oil fields. The deals will not only allow Big Oil to return to Iraq for the first time since Saddam nationalized the industry in 1972. By modernizing a production system wrecked by conflict and embargoes, Iraq’s exports could also get a huge boost, putting the country’s parlous economy on firmer footing and allowing Iraq to take its place as an oil power almost equal to Saudi Arabia. (Watch a video about the gas shortage in Iraq.) read more

John Donovan email correspondence with Shell lawyers 28 Nov 2009

From: John Donovan <[email protected]>
Date: 28 November 2009 10:16:41 GMT
To: [email protected]
Subject: Re: Data Protection Act 1998 – SAR

Dear Mr White.

Thank you for your email dated 27 November.

I note that you ignored my question about what, in Shell’s view, constitutes a “reasonable interval” between SAR applications from the same applicant. A response on that matter will be made after I receive the delivery of the promised information on or before 1st December i.e. by next Wednesday. read more

Sarawak Shell staff want govt to stop impending retrenchment

The Star Online

Published: Saturday November 28, 2009 MYT 3:31:00 PM


MIRI: Employees of oil-giant Sarawak Shell are seeking Government help to stop an impending large-scale retrenchment exercise to be carried out by the oil and gas producer throughout this state.

The Sarawak Shell Staff Union, which represents 2,700 workers, submitted a memorandum of appeal on Saturday to the state government through Deputy Chief Minister Tan Sri Dr George Chan Hong Nam, pleading with the Government to intervene to save their jobs.

Union secretary Solomon Nayup and a delegation of top union officials met with Dr Chan at the Sarawak United People’s Party Miri headquarters here and appealed to Dr Chan to forward their plight to the higher state and Federal authorities. read more

Royal Dutch/Shell CEO sees quite difficult 2010

AMSTERDAM, Nov 27 (Reuters) - Anglo-Dutch oil giant Royal Dutch Shell (RDSa.L) (RDSb.L) expects next year to be difficult in terms of consumer demand though the worst may be past, its chief executive said at an investor conference.

Leaked Shell Email: Downsteam-One Director Andrew Manley leaves Shell


By John Donovan

Just weeks ago, on 30 October, we published a leaked email from Andrew Manley, Shell Downsteam-One Programme Director, revealing the impact of the Vosification process, including delays on some important Shell IT projects. Manley acknowledged the consequential disappointment likely to flow from his announcement. Related Reuters article

Since then we have published articles from a Shell IT insider highly critical of some aspects of Shell IT operations…


read more

Shell, PetroChina To Develop Shale Gas In Sichuan

SHANGHAI (Dow Jones)--China has started its first joint development project in shale gas, in a bid to find alternative resources for the cleaner-burning fuel to meet the nation's rising demand.


Shell a ‘happy’ Woodside shareholder: CEO

Shell is in exclusive talks to sell the Stanlow refinery in the UK, as well as the Hamburg and Heide refineries in Germany, to Essar Oil Ltd. ''These are ongoing negotiations and I think I can say I am pleased with the progress,'' Voser said. ''Let us continue to finish those discussions.'' The exclusivity of the negotiations ends Nov. 30, though Voser declined to say whether a deal would be agreed by then.

Todd loses appeal against Shell and OMV

Todd was apparently trying to extract evidence of collusion between Shell, which has 48% of the Pohokura field, and OMV, which has 26%, the same share as Todd.

Shell Australia’s New Chief Ann Pickard to Lead ‘Major’ Spending on LNG

Shell said last month that a quick recovery in energy demand and prices was unlikely and that it would cut 5,000 jobs. Even so, Chadwick said “Australia is a growth area for us.” The headcount in Perth has more than quadrupled to about 260 people in the past four years, he said. “Operating Prelude will have implications we need to staff up for.” Shell employs about 2,500 people in Australia, according to its Web site.

Shell’s 30 per cent stake in restless Arrow Enegy

It is one thing to own the right to mine the gas, but it is a different issue to actually get it to the market and, as far as Arrow’s gas, it would seem Shell is in the ideal position to dictate terms, given it is the logical party to commercialise the project.

November 26, 2009: Peter Voser on Shell Job Cuts

FT: Shell CEO on debt, gas, Iraq, mergers, and more

November 26, 2009 12:01am

The reorganisation “moved very fast” in 2009, Mr Voser said.

For 15,000 posts, people have had to re-apply for their jobs.

About 50,000 people work in the areas affected by cuts, out of Shell’s total workforce of 102,000, and in those affected areas 10 per cent of the staff have gone.

Even in the newly-created projects and technology division, which is a centre of expertise for the group to draw on, 1,800 jobs have been cut from a workforce of 10,000 as duplicated roles are abolished. read more

Woodside Says It’s Not for Sale Amid BHP Speculation

BHP, the world’s largest mining company, may be interested in buying Woodside with the approval of 34 percent shareholder Royal Dutch Shell Plc, the Australian Financial Review’s Street Talk column said yesterday.

Shell’s borrowing needs cut with oil at about $80: report


Tue Nov 24, 2009 7:35pm EST

LONDON (Reuters) – Royal Dutch Shell’s (RDSa.L) (RDSa.L) chief executive is forecasting that the oil giant will not need to borrow any more money if oil remains at about $80 a barrel, the financial Times reported in its Wednesday editions.

The comments from Peter Voser, are a sign of how the oil industry has recovered from its lows earlier this year, the FT said.

Oil prices have risen from below $33 a barrel last December, although they are still around 48 percent lower than a record above $147 reached in July 2008. U.S. crude for January delivery is at about $76 a barrel. <O/R> read more

Shell seeks stake in giant Russian gasfield

Royal Dutch Shell is hopeful that it will gain an equity stake in a giant Russian gas field that could supply all of the world’s needs for a decade. Peter Voser, Shell’s chief executive, said that talks with the Russian government about the Yamal project in the Siberian Arctic were progressing well.

Shell steps on the gas in Qatar

Shell’s gas-to-liquid project in Qatar home

• Shell’s chief executive reveals two $18bn gas projects
• Despite oil expansion, gas is key to company’s future

Tim Webb, Tuesday 24 November 2009 21.06 GMT

Peter Voser is reeling off Shell’s projects to develop the next generation of biofuels when he gets to its algae scheme in Hawaii. He stops mid-sentence with a doleful look on his face. “I’ve never been to Hawaii,” says Voser, whose whistle-stop tour of Shell’s operations around the world most recently took him to Qatar and Nigeria. “Such are our hardships,” he jokes. read more

LEAKED SHELL MOTIVA EMAIL 24 NOV 2009: Norco Personnel Announcement

—–Original Message—–
From:   Deroche, Liz O MOTIVA-DMM/60
Sent:   Tuesday, November 24, 2009 7:18 AM
Subject:        Norco Personnel Announcement

Sent on behalf of Mark Hurley, General Manager – Norco Manufacturing Complex

The following Site Leadership Team role changes will go into effect January 1, 2010 and report directly to me:

Hermie Bundick has been selected as Site Production Manager for the Norco Manufacturing Complex.
Joe Gandolfo will be promoted Site Technical Assurance Engineering Manager for the Norco Manufacturing Complex. Joe has held a number of roles in his manufacturing management and manufacturing support leadership, most recently as the Director of Turnarounds – Manufacturing Americas.
Jones Devlin has been selected as Site Technical Assurance and Product Quality Manager for the Norco Manufacturing Complex.
Andre Bonton will be promoted to Site Projects and Turnaround Manager for the Norco Manufacturing Complex.
Lee Cheatham will be promoted to Site Maintenance Manager for the Norco Manufacturing Complex.
I have attached the new SLT organizational chart and we will discuss in more detail at a townhall in December.  I would also like to thank the Norco Site Leadership Team for their assistance during this important transition.  John Navratil, Tammy Little, Carla Davis-Madgett, and Jeff Brown moves will the subject of future announcements.
read more

Shell: market alone cannot deliver green energy

Royal Dutch Shell CEO Peter Voser says falling carbon price is stifling investment. Photograph: Jim Watson/AFP/Getty Images home

• Chief executive says falling carbon price stifling investment
• Call for government action to support new technology

Tim Webb, Tuesday 24 November 2009 20.56 GMT

Shell’s new chief executive has called on governments to intervene in carbon markets, the first time the Anglo-Dutch oil company has acknowledged that markets cannot be left to set the price of pollution.

Peter Voser told the Guardian that action needed to be taken to make expensive green projects like carbon capture and storage (CCS) economically viable. read more

Shell CEO Voser says more redundancies next year…


Shell says $80 oil will halt debt spiral

Voser says more redundancies next year… (unspecified number)

By Ed Crooks in London

Published: November 24 2009 20:46

Royal Dutch Shell has signalled that the steep rise in its debts is coming to end, with its chief executive saying the group would not need to borrow any more money if oil remains at about $80 per barrel. read more

Shell Expects Big Boost From Qatar Gas Projects

However, Shell also said it was delaying the launch of Qatargas 4 by as much as 10 months, from the start of 2010 until the end of the year. Mr. Voser said the timetable had been disrupted by delays at other LNG projects in Qatar involving other big oil companies, such as Exxon Mobil Corp, Total SA and ConocoPhillips.

Shell favours gas over oil for future production strategy

Daily Telegraph

Gas will be at the heart of Royal Dutch Shell’s production strategy ahead of oil as the world attempts to reduce carbon dioxide emissions, according to the energy group’s new chief executive, Peter Voser.

By Rowena Mason
Published: 8:17PM GMT 24 Nov 2009

Delivering an update on Shell’s two flagship gas projects in Qatar, which are costing the group $21bn (£12.6bn), Mr Voser admitted that one – a liquiefied natural gas (LNG) plant – would overrun by about 10 months.

However, he said construction was on track for Pearl, the other development, to start producing in 2011. It will be the world’s largest gas-to-liquids facility when completed, having spiralled in cost from $5bn to $19bn since 2003. read more

Shell eyes Gulf of Mexico boost


Wire reports

Supermajor Shell is planning to expand exploration in the US Gulf of Mexico and Kazakhstan as Europe’s largest oil company seeks to maintain output.

The company is designing a development plan for its West Boreas discovery in the Gulf of Mexico, which may hold 100 million barrels of resources, said Malcolm Brinded, Shell’s executive director for international production and exploration.

Plans for a second platform at the deepwater Mars field in the Gulf, which may add 100,000 barrels of oil equivalent per day of output, are also being evaluated, Brinded said in a Bloomberg report. read more

Essar may seal refinery deal with Shell in a month

“Both the companies have reached consensus on several issues regarding the deal and supply and product offtake agreements have been signed. Essar will supply products to Shell from the refinery after the takeover,” said a source close to the development. He, however, refused to divulge the financial details of the deal saying negotiations were underway on that front.

‘Why We Fight’: The Nature of Modern Imperialism

Britain's oil and gas giants, its mining companies and its arms manufacturers have a powerful and ongoing relationship with government and an effective lobbying influence in the office of successive Prime Ministers.

Total farce of Shell Managed Open Resourcing


I like to share this with you. The results of 15 years of complete mismanagement.

Shell has now degenerated so much that we have to endure nonsense like this. Brinded has always believed in ‘processes’ regardless of the impact on business (mostly negative, remember ‘Overpromise-Underdelivery’?). Because nobody has dared to fire him, he has been around for eons and so his band of followers has increased and invariably Shell has deteriorated from a first class and caring organisation to a computerlike organism.

Staff MUST apply in a process called MOR (Managed Open Resourcing). The idea behind the much hated Open Resourcing is to generate competition and transparency. But if you take away the critical control mechanisms (= checks and balances), as has been the case since about 10 years ago, you have a system that is open to abuse and very prone to nepotism and cronyism. read more

The Hague is becoming an ever emptier shell

Times Online

November 24, 2009

Martin Waller: City diary

Last year, as part of the merger of the Dutch and British units of Royal Dutch Shell, their corporate headquarters was established in The Hague. This meant that all the head office functions, for example human resources, public relations (PR) and investor relations (IR), moved there, under the leadership of Jeroen van der Veer, the Dutch chief executive. However, it seems to have dawned on someone that most of the reporting on Shell is done by British or American media and bits of the PR side have been quietly moved back to London. Some now wonder how long IR can remain in The Hague. Most fund managers are also in London and the only significant investor in the Dutch capital is Queen Beatrix. She can probably be relied on to look after her own investments without too much help. read more

Shell Martinez refinery pumped out 4.5 million metric tons of carbon dioxide and related greenhouse gases in 2008

San Francisco Business Times

Monday, November 23, 2009, 10:20am PST read more

Royal Dutch Shell: Good Progress Of Pearl GTL, Qatargas 4

LONDON (Dow Jones)--Royal Dutch Shell PLC (RDSA) said Monday it was making good progress with the Pearl GTL and the Qatargas 4 projects in Qatar.

Shell Corrib Gas Dispute: The emergence of corporate rule

“The Corrib gas dispute in many ways tells the story of modern Ireland,” Mr Murray said. “The result has been an erosion of civil liberties and the emergence of corporate rule, where multinationals appear to have greater rights than Irish citizens,” he said.

Shell delays Qatargas 4 LNG plant by a year

LONDON, Nov 23 (Reuters) - Royal Dutch Shell (RDSa.L) said it had delayed one of its largest schemes by around a year with start-up for the $8 billion Qatargas 4 liquefied natural gas project now planned for late 2010 and the first cargo possibly pushed into 2011.

Shell pushes back completion date of $8 billion Qatargas 4 Project

Monday, November 23, 2009

Dutch oil supermajor Royal Dutch Shell (LSE: RDSB) updated the market on its progress in Qatar, where  it is developing the Pearl GTL and Qatargas 4 projects in cooperation with state owned Qatar Petroleum, which operates all oil and gas activities in the country. While Pearl GTL was progressing in line with expectations, the US$ 8 billion Qatargas 4 project has been delayed by 10 months with startup now planned for late 2010.

The company has now entered into the testing phase at Pearl GTL, having inaugurated the plant’s control room that comprises about 1,000 control cabinets hosting 179 servers programmed with 12 million lines of software code. read more


In the light of the information printed below, how can anyone be expected to believe anything Shell says…


NOVEMBER 23, 2009, 10:22 A.M. ET


Shell Pearl GTL Project To Cost $18B-$19B, In Line With Budget

LONDON (Dow Jones)–Royal Dutch Shell PLC’s (RDSB.LN) Pearl GTL in Qatar is expected to cost $18 billion to $19 billion, in line with its planned budget, a spokeswoman said Monday, underscoring progress made by the company in controlling its costs.

The news contrasts with the disclosure four years ago by the Anglo-Dutch oil company that costs at a giant Russian liquefied natural gas plant had doubled to $20 billion. read more

Royal Dutch Shell PLC agrees to train former gun-toting militants in oil-rich Niger Delta

Royal Dutch Shell PLC has even agreed to offer business training to former gun-toting militants in the volatile, oil-rich Niger Delta, following a government-sponsored amnesty here.

Essar May Rise After Report That Shell May Acquire 10% Stake

By Fred Pals

Nov. 23 (Bloomberg) — Essar Oil Ltd. may rise in Mumbai after a report that Royal Dutch Shell Plc is acquiring a 10 percent stake in the company as part of a deal to sell three refineries to the Indian company.

The stake is valued at about 17 billion rupees ($360 million) and will account for less than half the $800 million value of the three plants, the Economic Times reported Nov. 21, citing unidentified people. Essar and The Hague-based Shell have been in exclusive talks since Oct. 30 on the sale of the Stanlow refinery in the U.K. and the Hamburg and Heide refineries in Germany. read more

Shell and Essar talk


Shell and Essar talk

Royal Dutch Shell is considering buying a 10% stake in Essar Oil. The Indian group is in talks to buy three of the oil giant’s refineries, including at Stanlow near Ellesmere Port, Cheshire. The potential $365m (£221m) investment is being discussed as part of that transaction and would give Shell a stake in a group in one of the world’s fastest-growing markets.


Shell seeks more time to settle back excise taxes

MANILA, Philippines - Pilipinas Shell Petroleum Corp. wants more time to settle more than P7 billion in back excise taxes , saying it might be forced to stop its local operations if compelled to pay tomorrow, Bureau of Customs Commissioner Napoleon Morales said.

The SEC Surrenders to the Oil Industry

By Felix Salmon (Left)

November 20, 2009

What are the consequences of allowing multi-billion-dollar systemically important multinational corporations to report their assets using proprietary mark-to-model tools involving discredited Monte Carlo simulations? I think we all know the answer to that one. But unbelievably, after such shenanigans contributed enormously to the greatest financial meltdown in living memory, the SEC is now set to allow more or less exactly the same thing in the oil industry. read more

Stanlow Refinery Sale: Union warns Essar Oil of dispute with Shell

By John Donovan

Talks with Shell regarding expansion of union recognition for workers at the Stanlow Refinery have broken down. Unite the Union intends to pursue the issue through “legal channels”.

The union sent a related letter today (printed below) to Essar Oil Limited, the company named by Shell as the preferred bidder for the refinery. A deadline for the completion of negotiations between Shell and Essar for the sale of the refinery is only days away.

Part of the deal with Essar reportedly involves Shell taking a stake in the Indian company.
read more

Shell seeks to reassure analysts on major projects

Shell posted a 62 percent decline in net income to $3.25 billion and Voser said the outlook “remains very uncertain” given forecasts that demand for crude will fall the most this year since 1980. Shell is cutting 5,000 jobs, equivalent to about 5 percent of its workforce, and has reduced operating costs by about $1 billion.

Ethnic Chinese nabbed for stealing secrets, espionage

Reuters India Fri Nov 20, 2009 2:44pm IST EXTRACTS

BEIJING (Reuters) – The United States is seeking the release of Chinese-born, American geologist Xue Feng, who was detained two years ago on state secrets charges after negotiating the purchase of an oil industry database.

March 1996 – An official of the state-owned China National Offshore Oil Corp was detained for leaking state secrets to a Chinese employee of Royal Dutch Shell who was released after spending a year largely incommunicado. Shell was in talks with CNOOC then to build an oil refinery. read more

Shell jobs restructuring mess

This information is based on multiple  insider sources as conveyed to John Donovan

There will be more than 1/3 reduction of staff in jg A and B. In the level below that the reduction is of a similar magnitude.

The aim is to announce by 1st December who can continue and who has to go.

The mess is so great that many retired old codgers are being offered contract extensions to keep the machine running.

We hear that dato Chadwick has got it in the neck too. So young, so talented and no job for him…. He probably befriended the wrong gods in Shell.

The Brinded gestapo is very tightly controlling who stays and who goes. TFA also applies to the resourcing process: do not touch anyone not on the list of friends of Malcolm. Cronyism and nepotism are flourishing as never before.

The chaos and mass distraction brought about by the jobs reapplication process has turned out to be rather more than the mere “interesting exercise” that Peter Voser had in mind.

In terms of unfortunate events in Shell’s history, some might put it on a par with a previous boss of Royal Dutch Shell spending four days as a guest of Adolf Hitler at Berchtesgaden, discussing Nazi terms for granting a monopoly to the Royal Dutch and Shell Companies for petrol distribution in Germany. Ruthless then and ruthless now.


Nov 20th, 2009 at 3:04 pm


As a MOR applicant, I can confirm the number of lobbying and cronyism. Its so time consuming and wasteful. The telephone bills in the office would surely increase these few months. I hope there is no fatality or major safety incidents as almost all staff lost focus.

At the end of the day, it is the incumbent or those who has higher up “Friends” who get the job. Its who you know and not what you know! I am applying outside at the same time. If I get both, rest assured, I shall go. If I do not get a job outside, I stay till I get a job, how about that! In worst case, I get a Christmas bonus.

Comment received from “shellwaarbenjijnu”
on Nov 20th, 2009 at 5:33 pm

Regarding the discussion on Open (i.e. behind closed doors) Resourcing, the cat was out of the bag already in July when Voser said “an interesting exercise because we could really select those we are keen on”. If ever there was an indication of selection based on “who you know rather than what you know” – this was it. In Voser’s e-mail to staff sent whilst Jeroen was actually still in charge he referred to a number of Shell “firsts”. In his next letter in similar vein, he may wish to consider including another first “the devaluation of the notion of open, fair internal resourcing based on skill, competence, capability, and track record of delivery”. read more

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