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February, 2013:

Royal Dutch Shell Kulluk Cover-up?

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POSTING ON SHELL BLOG BY “OUTSIDER”

Screen Shot 2013-02-13 at 19.35.08Dry towing a drillship? Something must be very seriously wrong. And when the Kulluk comes out of the water the damage to the hull will be clear for all to see – look forward to seeing the photographs!

RELATED COMMENT

The practice of dry towing is used when a vessel is transported on the deck of a heavy lift vessel.
 
For the Kulluk, this will expose the damaged underside for all to see. Dry towing of the Kulluk makes sense because the speed of the heavy lift vessel is 2-3 times faster than could be achieved with a conventional tow.
 
Dry towing of the Discoverer is somewhat unusual because the drillship should have been capable of sailing under its own steam at about the same speed as a heavy lift transport vessel. The use of a dry tow implies that the vessel is unseaworthy. Perhaps the Discoverer was more seriously damaged when it went aground last summer than Shell admitted? Or perhaps the recent explosion was more than just a “backfire”?
 
It’s a pity the exclusion zone will prevent anyone taking photographs when the vessels are lifted out of the water.
 
If you look at Google images, you’ll find plenty of examples of heavy lift dry tows. There are comparatively few examples of large ships being dry towed, but a well-publicised case was the USS Cole (heading photo above) after it was attacked in harbour. See http://en.wikipedia.org/wiki/USS_Cole_bombing for example. read more

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Shell Oil US: Great Salary but no job security

Screen Shot 2012-06-17 at 22.52.10EMAIL RECEIVED FROM A FORMER EMPLOYEE OF SHELL OIL CO

John,

I found this in ‘glassdoor’.

It is a review of Shell, USA, etc. It is not the company I worked for years ago, not by a long shot.

Shell Oil US – Great Salary, no job security

169 Shell Oil US Reviews Back to all Shell Oil US Reviews

Reviews are posted anonymously by employees

There are newer reviews for this employer.

See the most recent Shell Oil US Reviews

“Great Salary, no job security”

Former Employee – Reviewed Dec 7, 2012

Pros – Great Salary and Bonuses, Domestic Partner Benefits, 401k company contributions

Cons – Continue downsizing and offshoring, little regard for employees, entire focus on cost cutting and bottom line profit, decision making is slow and decisions generally revisited over and again. read more

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Shell Deeply Ashamed

Screen Shot 2013-02-13 at 15.29.55FROM OUR NEWS ARCHIVE: LONDON EVENING STANDARD Wednesday, 27 October 2004 page 42 BUSINESS SECTION

SPEAKING OUT

“I’m convinced we have a lot of strengths. All of us are deeply ashamed about what happened about the reserves, but we are determined to regain our, position.”

– Shell chairman Jeroen van der Veer on the oil giant’s attempts to put its misdemeanours behind it

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Shell plans to tow drill vessels to Asia for major repairs

Screen Shot 2013-02-14 at 10.54.45The Kulluk, a 266-foot diameter, 30-year-old circular drilling rig, had been mothballed in Canada for a dozen years before Shell bought it in 2005 for an untold sum and invested $292 million in upgrades and retrofitting. The 514-foot-long Noble Discoverer is even older, built in 1966 and converted into a drilling ship 10 years later. 

February 11, 2013

By LISA DEMER — [email protected]

In another costly setback for Royal Dutch Shell’s controversial Alaska Arctic endeavor, both drilling rigs used offshore during last year’s oil exploration season will be towed out of the water on massive vessels to Asia for further inspection and repair, Shell announced Monday.

The decision suggests the Kulluk and the Noble Discoverer — Shell’s only drilling rigs for the Arctic — need major work and calls into further question whether Shell will be able to resume drilling in the Chukchi and Beaufort seas this year. Two federal investigations are under way into Shell’s Alaska operations. read more

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Shell Vessels Sidelined, Imperiling Arctic Plans

In another blow to its Alaskan Arctic drilling program, Royal Dutch Shell said on Monday that it had decided to tow its two drill vessels there to Asian ports for major repairs, jeopardizing its plans to begin drilling for oil in the icy northern seas next summer. Shell executives said the Kulluk had sustained damage to its hull…”; “The Noble Discoverer dragged its anchor last July and nearly ran aground on the Alaska coast, and four months later it was damaged by an explosion and fire…

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By A version of this article appeared in print on February 12, 2013, on page B1 of the New York edition

HOUSTON — In another blow to its Alaskan Arctic drilling program, Royal Dutch Shell said on Monday that it had decided to tow its two drill vessels there to Asian ports for major repairs, jeopardizing its plans to begin drilling for oil in the icy northern seas next summer.

The new potential delay in drilling does not necessarily doom Shell’s seven-year, $4.5 billion quest to open a new oil frontier in the far north, but it may strengthen the position of environmentalists who have repeatedly sued to stop or postpone exploration that they claim carries the risks of a spill nearly impossible to clean up. read more

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Starring Role of Shell CFO Simon Henry in Reserves Scandal

By John Donovan

On 13 March 2009, the FT published an article about Simon Henry, who was about to become Chief Financial Officer of Royal Dutch Shell Plc. It said that he had survived the Shell reserves misreporting scandal with his reputation intact. On the basis of irrefutable Shell internal evidence, we take issue with that conclusion.

We have today published evidence confirming his starring role in the scandal. It includes an email sent directly to Mr Henry by the then Chief Executive of Shell Exploration & Production, Mr Walter van de Vijver. The content removes any doubt that Simon Henry knew two years before the scandal broke that Shell had booked reserves it should not have booked. read more

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Verdict on Royal Dutch Shell CFO Simon Henry

Shell internal email correspondence irrefutably proves that Simon Henry was aware in March 2002 that “reserves bookings were made that should not have been made”. Walter van de Vijver, the “sick and tired” Chief Executive of Shell EP, gave the information directly to him. As can be seen in the email, Walter van de Vijver aggressively accused Mr Henry of setting targets that were near impossible to achieve. The question arises of whether Mr Henry was a culprit, an accomplice, or an innocent bystander.

By John Donovan

INTRODUCTION

We have published a series of articles about the starring role of Simon Henry in the Royal Dutch Shell reserves scandal.

Shell internal email correspondence irrefutably proves that Simon Henry was aware in March 2002 that “reserves bookings were made that should not have been made”. Walter van de Vijver, the “sick and tired” Chief Executive of Shell EP, gave the information directly to him. Walter van de Vijver accused Mr Henry of setting targets that were near impossible to achieve. read more

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Shell tax dodging in Alaska

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OPINION: From the Editor: Shell’s denial of tax issue shameful

February 8th 3:44 pm | Carey Restino

EXTRACT

This week, Shell CEO Peter Voser denounced the Bristol Bay Times-Dutch Harbor Fisherman’s story in a London press conference, saying $6 million was nothing to Shell, and therefore didn’t factor into the company’s decision to move its rigs when they did. Remember, Shell’s plan was not only to move the Kulluk, but also the Noble Discoverer, which ran into trouble, too, luckily while it was docked in Seward and bobbing around in a horrific storm at not a risk to Alaska like the Kulluk. read more

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Shell’s shock move jumpstarts oil benchmark reform debate

Royal Dutch Shell upended the oil world on Friday, unilaterally rewriting the rules of the market that sets the basis of billions of dollars of oil worldwide, risking a liquidity-sapping confrontation with other actors.

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Fri Feb 8, 2013 6:59pm EST

* Shell’s rules start Monday for May and beyond cargoes

* Rules would improve liquidity in North Sea market -Shell

* Platts says will ignore Shell’s terms for now

By Alex Lawler and David Sheppard

LONDON/NEW YORK, Feb 8 (Reuters) – Royal Dutch Shell upended the oil world on Friday, unilaterally rewriting the rules of the market that sets the basis of billions of dollars of oil worldwide, risking a liquidity-sapping confrontation with other actors.

In a notice published on its website, Shell said it would alter its SUKO 90 terms in the so-called Dated Brent market starting on Monday for cargoes loading in May and thereafter in a move the oil major said would bolster liquidity in the key North Sea market. read more

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Selection of Shell related articles 8 February 2013

Selection of Shell related article links kindly supplied by a regular contributor

Stranded Shell drill vessel won’t face state tax: FuelFix (blog)-State oil and gas attorney Martin Schultz said the policy covers the Kulluk. “It’s a pretty straightforward interpretation as it applies to the Shell …

G8 and Nigeria’s Oil Wealth: Corruption and Wealth of a Nation: GroundReport-The discovery of oil in 1950s by Shell BP has complicated Nigerian project and the realization of a true nationhood. The ruling class was not …

Letter: You should be outraged at how this oil giant pollutes our …: River Falls Journal-Feb 7, 2013: The Royal Dutch Shell Oil Company, the most carbon-intensive oil company in the world, will contribute more to global warming than any other … read more

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Shell reserves fraudster Rev Sir Philip Watts

Screen Shot 2013-02-08 at 22.07.58By John Donovan

An article published today by the Maidenhead Advertiser says the Rev Sir Philip Watts is taking up a new position as Priest in Charge of the Benefice of Waltham St Lawrence. He is still protesting his innocence in relation to the Shell reserves fraud and cover-up that resulted in him being forced to resign as Group Chairman of the Royal Dutch Shell Group. Sir Phil forgets to mention the $150 million worth of fines imposed on Shell by the US and UK financial regulators, the class action lawsuits that were settled and the overwhelming incriminating evidence against him, including internal emails.  When will he being suing for defamation all of the newspapers that have published articles correctly accusing him of cheating Shell shareholders? He was a fraudster then and remains a fraudster now, this time deceiving his flock, not investors. read more

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A word in your Shell-like

Screen Shot 2013-01-23 at 13.17.19FROM OUR FEBRUARY 2005 SHELL NEWS ARCHIVE: “…we learned last year that the company leadership had been systematically lying to itself, its shareholders and wider stakeholders about the size of its oil reserves.”: “for years Shell lied about its sustainability as a business while preaching principles that it was betraying.”: “Shell had knowingly overstated its reserves by a third, a monumental betrayal of trust that is Europe’s version of Enron.”

By John Donovan

We have printed below a brilliant Will Hutton article published by The Observer on Sunday 6 February 2005. As he correctly says, this was a company that was lying to itself. No wonder Sir Philip Watts is seeking redemption.

The Observer: A word in your Shell-like

By Will Hutton: Sunday February 6, 2005

There’s nothing wrong with making profits. But we deserve a more sophisticated debate about sharing them

There is nothing like the news of one of Britain’s biggest companies making record profits to bring out all our ambiguities about capitalism in general and profit in particular. The left’s traditional mistrust of corporate money-making still casts a long shadow and even capitalists are uncertain how to respond when their profits are booming. read more

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Unsure of Shell

Screen Shot 2013-01-23 at 13.17.19FROM OUR FEBRUARY 2005 SHELL NEWS ARCHIVE: A person close to the company said: “Without exception, every Shell person I have met recently has asked me if I am able to help them find something else. Others are leaving without even waiting to find another job.”

By John Donovan

Printed below is an article by Robert Peston in his then capacity and Sunday City Editor of The Sunday Telegraph. He is not the first to have been deceived by the Shell CEO Jeroen van der Veer. Ask Bill Campbell, the former HSE Group Auditor of Shell International.

Sunday Telegraph City Comment, Edited by Robert Peston, Sunday City Editor: (Filed: 06/02/2005)

Jeroen van der Veer is not what you expect from the chief executive of the UK’s most profitable company – which is what Shell became last week, with its disclosure that in 2004 it generated net income of almost £10bn. read more

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Signs of failure of the Royal Dutch Shell Empire?

Screen Shot 2013-02-07 at 19.02.31The problem is when the corruption stems from the boardroom as witnessed by the lead up to the Shell reserves crisis and the protracted cover-up of the Shell Touch F*** All scandal, all is lost.  You only have to look at recent history of how organisations fail due to internal corruption of essential controls by the men in suits in the Boardroom.  Enron, the banking system on both sides of the pond, the current crisis in the NHS are just a few examples. 

COMMENT BY BILL CAMPBELL, RETIRED HSE GROUP AUDITOR, SHELL INTERNATIONAL

The myth of governance

Many pages exist explaining the need for the Shell organisation to have effective governance over its worldwide operations if it hopes to meet its stated objectives across the business.  The governance process is owned by the Board, executive and non executive.  By having essential management controls in place is the fundamental safeguard to meeting objectives including compliance with the applicable laws in the regions in which Shell operate.

The problem is when the corruption stems from the boardroom as witnessed by the lead up to the Shell reserves crisis and the protracted cover-up of the Shell Touch F*** All scandal, all is lost.  You only have to look at recent history of how organisations fail due to internal corruption of essential controls by the men in suits in the Boardroom.  Enron, the banking system on both sides of the pond, the current crisis in the NHS are just a few examples.   read more

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Deep-Sea Drilling Muddies Political Waters

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A deep-water drilling rig in the South China Sea operated by the China National Offshore Oil Corporation, or Cnooc. Photo Credit Jin Liangkuai/Xinhua, via Associated Press

By A version of this article appeared in print on February 7, 2013, in The International Herald Tribune.

AUSTIN, Tex. — The oceans deep are a repository of many secrets. Shipwrecks have existed undisturbed for centuries, as have corals and fish of almost unimaginable diversity.

Now, increasingly, the secrets of the seabed are being looked at by companies drilling for oil and minerals. International geopolitics and the environment are getting more muddled as a result.

“Deep-sea drilling is expensive and hard, and the technology wasn’t there until very recently,” said Sheila Smith, a senior fellow for Japan studies at the Council on Foreign Relations in the United States. Now, major powers are vying for drilling rights in places like the East China Sea, where the tussle is between the two largest energy consumers in Asia: China and Japan. Tensions there flared this week when Japan said China had recently aimed military targeting radar at one of its ships near disputed islands. read more

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Desperation led to Shell’s plotting to exploit 9/11 attacks

Screen Shot 2014-02-10 at 16.29.29BUILD UP TO SHELL RESERVES SCANDAL: Comments by leading Shell execs: “…the market will want to know whose head is going to roll for what they will see as blatant deception.”; “this is potential dynamite for management credibility and the share price”; “…how you have to break the detail of this news in September, assuming that there is indeed a firestorm of hostile comment…”; “why should we have any more confidence in these numbers than the previous ones…”; “…please don’t let the people who have got us into this mess be under any illusion that there is an ‘easy’ answer…”; “You will blight the relative TSR of the Group and everyone’s score card for years to come”; ‘So “blaming”’ it on field declines and slippage on growth in emerging markets is the least we should do in order to downgrade expectations.’

By John Donovan

When we published an article about Shell executives plotting to exploit the 9/11 attacks, we said that the motive behind the discussion was well founded internal and external concern about Shell production growth and problematic reserves.

We now publish Shell internal emails circulated in the months leading up to 9/11, which provide proof of the degree of concern over these issues that led to Shell executives considering such a distasteful strategy to manipulate the markets.

Some extracts: read more

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Shell Denies Tax Evasion in India

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By NEHA THIRANI BAGRI: February 4, 2013

The Indian unit of the Anglo-Dutch oil company Royal Dutch Shell said Monday that it would challenge a notice by the Indian tax authorities alleging tax evasion through the transfer of shares.

Deepak Mukarji, a Shell India spokesman, said that the company had received an order on Friday from the income tax department of India that accused Shell India of evading taxes by underpricing a share transfer within the group by approximately $2.8 billion.

At the center of the controversy is a share sale by Shell India to Shell Gas BV, its overseas parent , in March 2009. Shell India issued shares worth 870 million rupees ($160 million) to Shell Gas BV, or 87 million shares at a value of 10 rupees per share, but the Indian tax authorities now contend that each share was actually worth 183 rupees. read more

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BP Cedes Top U.S. Gulf Oil Producer Spot to Royal Dutch Shell

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By BEN LEFEBVRE: February 5, 2013

HOUSTON–BP BP.LN +1.44% PLC ceded its spot as the biggest crude-oil producer in U.S. Gulf of Mexico federal waters to rival Royal Dutch Shell RDSB.LN +0.31% PLC as BP’s 2012 output declined due to major maintenance work and asset sales.

The U.K. company had been the Gulf’s most prolific oil producer since 2008, the year in which it took the crown from Shell, according to U.S. government data.

The shift underscores the lingering fallout from the 2010 Deepwater Horizon disaster, which led to a deep restructuring of the company and prompted it to sell billions of dollars in assets. read more

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Shell slight of hand with reserve estimates

Screen Shot 2013-02-05 at 18.26.22By a former employee of Shell Oil Co (Name and contact details supplied to John Donovan)

Back in the 1980’s Shell (and other major oil companies) were having problems with one of the major vendors that provided borehole wireline logging services. There were three of these companies at the time, but we need not mention names. It is from the data gathered through these wireline services that reserve estimates are calculated on new discoveries, and often times on infill wells in existing oil/gas fields.

The services (data) supplied by one of these companies was notoriously suspect and Shell’s engineers routinely complained bitterly about the quality of the data this company provided. Shell engineering staff constantly bickered with technically ignorant middle level managers about using this vendor. Shell’s R&D lab eventually got involved in the matter and discovered very serious design problems with some of the devices built and used by this company. There were also serious operational QC problems in the field. As a result of these issues the laboratory refused to recommend or give its stamp of approval for the services offered by this particular vendor. Shell labs cannot tell the operating units how to run their business, but by refusing to recommend/approve the services of a contractor the operating units assume liabilities if ‘problems arise’. read more

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9/11 Terror Attack and the Shell Reserves Scandal

By John Donovan

On Friday we published an article revealing Shell internal email correspondence, which provided proof that three weeks after the 9/11 terrorist attack on the USA, Shell executives were considering how Shell could exploit the horrific event for commercial reasons.

As can be seen from the correspondence, the objective was to “buy us a bit of time” in dealing with “production growth” … and “reserves replacement…” Both are key factors in assessing the value of an oil company. Shell was increasingly vulnerable to criticism on both issues.
read more

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Kulluk grounding has already cost Shell $90 million

Royal Dutch Shell is a company with sham business principles and no scruples. It plotted to exploit the 9/11 attack for commercial purposes, adopted a Touch F*** All approach to the safety of offshore operations costing the lives of Shell offshore workers, and even defrauded its own investors. Is the U.S. government really going to allow this thoroughly discredited blundering company to continue with its jinxed Arctic folly?

By John Donovan

Shell has revealed that the grounding of the Kulluk in Alaskan waters has already cost the company $90 million for salvage and other costs. This does not include any repairs. There is no mention of making any insurance claim, because Shell was apparently unable to obtain contingency cover. Lloyds underwriters correctly decided the venture was too risky to the extent that it was impossible to quantify the potential financial consequences of a disaster that could bankrupt even a company as big as Royal Dutch Shell Plc. So Shell has been recklessly maneuvering its fleet, including a converted antiquated rust bucket, in stormy unpredictable Alaskan/Arctic waters without insurance, other than questionable self-insurance for a potential liability that it might not be able to cover. The ill fated voyage of the Kulluk, which ended on the rocks, was prompted, as Shell has admitted, by a tax dodging motive. read more

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A mixed verdict

Feb 1st 2013, 16:57 by G.P. | ABUJA

ON JANUARY 30th a Dutch court ruled that Shell, Nigeria’s biggest oil producer, must compensate Friday Akpan, a farmer from the Delta region, for the pollution of his farmland and destruction of his livelihood. The ruling could open a flood-gate to legal complaints against oil companies.In 2008, five Nigerians, including Mr Akpan, filed suits in The Hague where Shell has its headquarters. The other four cases were dismissed; the court said Shell could not have prevented the spills involved. Environmental campaigners insist the company was negligent. Amnesty International says the dismissal highlights how difficult it is for Nigerians whose lives have been affected by oil pollution to get justice. read more

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Shell India In Talks With Tax Men Over Alleged Tax Evasion

Published February 02, 2013 by Dow Jones Newswires

The Indian unit of Royal Dutch Shell PLC (RDSA) Saturday said it is in talks with tax authorities in India over alleged tax evasion.

Earlier in the day, Mint newspaper, citing a person familiar with the matter, said that the Indian income tax department charged Shell India of under pricing a share transfer within the group by 150 billion rupees ($2.8 billion) and consequently evading taxes.

Citing television channel ET Now, the report also said that the income-tax order relates to the issue of 870 million shares by Shell India to an overseas company Shell Gas BV in March 2009. read more

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Shell to Sea protesters block trucks en route to compound

Protesters waving signs saying “Shell Destroys Communities and Environment” and “Harmful to Local Community” blocked trucks drawing material to a Shell tunnelling compound at Aughoose. Partners Shell, Statoil and Canadian-owned Vermilion are now 10 years behind the initial target to start generating revenues from the field.

Saturday, February 02, 2013

A group of environmental activists have staged a protest against oil and gas giant Shell today.

The organisation Shell to Sea, which has overseen a long-running campaign against the global energy firm over its plans for a major gas project in Co Mayo, described its latest profit announcement as “obscene”.

Shell revealed it made €19.6bn in profits during 2012. Campaign spokesman Terence Conway said it was clear communities were being exploited for corporate interests. read more

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Shell vows to tame Arctic

Shell’s chief executive has vowed that a string of embarrassing mishaps will not derail its controversial $5 billion Arctic drilling campaign. He said: “We will not be distracted by being in the crossfire.

THE TIMES

FRIDAY FEBRUARY 1 2013: Page 45

Tim Webb. Katherine Griffiths

Shell’s chief executive has vowed that a string of embarrassing mishaps will not derail its controversial $5 billion Arctic drilling campaign.

Dismissing the grounding of its Kulluk drilling rig in Alaska on New Year’s Eve as a “marine incident”, Peter Voser said that he was convinced that Shell would eventually exploit the Arctic region’s vast deposits.

He said: “We will not be distracted by being in the crossfire. We are quite used to that I’m convinced that Alaska in general will be developed and by companies who have the tech- nology and operating procedures like we have. I see Shell operating in Alaska in the future.” read more

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We’re in the Arctic for the long term, Shell insists, despite risk to 2013 drilling plans

Royal Dutch Shell is in the Arctic for the long term, insisted chief executive Peter Voser, despite casting doubt over the company’s 2013 Alaskan drilling plans and warning he could not rule out further “incidents” after a series of mishaps.

The Kulluk drilling rig which ran aground off Alaska on New Year’s Eve. Photo: AFP

By 9:02PM GMT 31 Jan 2013

Mr Voser was speaking as Shell unveiled a 6pc fall in profits to $27bn (£17bn) for 2012, as fourth-quarter earnings came in below expectations because of a surprise slump in exploration and production profits.

Shell has spent about $5bn over seven years on its controversial Arctic exploration campaign but has yet to be allowed to drill into potentially oil-bearing rocks.

Setting out the company’s intentions to drill more than 40 conventional oil and gas exploration wells this year, Mr Voser said on Thursday that the Arctic was counted within those plans. read more

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Shell shares dive nearly 2% as £17billion profits disappoint

By Harry Glass: PUBLISHED: 12:43, 31 January 2013

Shell shares were down 42p (1.8 per cent) at 2,263.5p by mid-day.

Its refining operations actually returned to profit in the last quarter, but analysts were more concerned about a 14 per cent fall in earnings from its production division to £2.8billion – the company blamed higher costs and exploration expenses.

However, Shell produced 3.41million barrels of oil or gas equivalents per day – up by 3.3 per cent – reflecting the impact of start-ups in Qatar and Australia against declines at existing fields. read more

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Nigeria Spill Fines on Shell, Chevron, Not Backed by Law

By Elisha Bala-Gbogbo – Feb 1, 2013 11:23 AM GMT

Fines amounting to $8 billion sought by Nigeria from Royal Dutch Shell Plc (RDSA) and Chevron Corp. (CVX) for oil spills are not backed by law, said Bukola Saraki, chairman of the country’s Senate Committee on Environment.

“Under the existing law, there is no penalty for oil spills apart from just to clean it up,” Saraki, a senator representing the ruling People’s Democratic Party from central Kwara state, said in an interview in Abuja on Jan. 29. “You only pay 1 million naira ($6,362) for late reporting.” read more

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SHELL EP PRODUCTION FORECAST & TRAGIC WORLD EVENTS

“I found the emails interesting and indicative of the deception Shell management was clearly engaged in. They were trying to exploit the events of 9/11 to their benefit. What these emails could have done at the time they were written is cause Shell’s stock to drop significantly.

By John Donovan

I stumbled across some intriguing Shell internal email correspondence while searching the US Court files for the class action litigation relating to the Shell reserves scandal. We have no comment whatsoever to make about the content of the email correspondence, which is self-explanatory.

The correspondence involved the following individuals with job titles at the time of the emails:

Aidan McKay: Manager Shell EP – The Hague (or Head Global Strategic Planning & Capital Allocation)
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