Royal Dutch Shell Group .com Rotating Header Image

Posts from ‘March, 2016’

Italy Probes Shell’s Role in Purchase of Nigerian Oil Block

Screen Shot 2016-03-31 at 21.20.56Shell and the Italian oil firm Eni bought the block known as OPL 245 in 2011. Activists including the watchdog group Global Witness say the money ultimately went to a company secretly owned by a former Nigerian oil minister and never reached state coffers.

Global Witness and other groups filed a complaint in 2015 with the public prosecutor in Milan that the group says describes Shell’s role in the transaction.

Eni was already being investigated. Both firms have denied wrongdoing.

In a statement this week, Shell said officials searched its headquarters in The Hague in February and that it was cooperating with officials. read more

Shell target of Nigerian corruption probe

Screen Shot 2016-03-31 at 13.46.33

Screen Shot 2016-03-31 at 13.45.36

Screen Shot 2016-03-30 at 13.04.33Global Witness said Dutch supermajor and its partners exposed shareholders to risk.

By Daniel J. Graeber

LONDON, March 31 (UPI) — Transparency advocates said Royal Dutch Shell and its partners in Nigeria may have exposed shareholders to a high level of risk in a corrupt system.

Global Witness said it was joining Nigerian anti-corruption campaigners in working to expose what they say is an opaque corporate reputation in the country. Global Witness Director Simon Taylor said that, working with Italian energy company Eni, the Dutch supermajor was stained by corruption.

“Shell and Eni exposed their investors to massive risks and have been tainted by this theft from Nigerian citizens,” he said in a statement. read more

Which Members of the Royal Dutch Shell Executive Committee Approved the OPL 245 Scam?

Screen Shot 2016-03-31 at 09.21.16

Outsider: Contrary to what today’s newspaper reports might suggest, Shell wasn’t “dragged” into the long-running OPL 245 scandal – Shell was involved in orchestrating it from the very start.

Since expenditure at this level must have required the approval of the EC it will be interesting to see whether Shell will let us know which members of the EC were responsible for approving the scam.

Shell Ireland gets €50m injection for Corrib Gas

Screen Shot 2016-03-31 at 09.13.34

Gordon Deegan: Thursday, March 31, 2016

Shell Ireland has received a further €50m cash injection from oil giant Shell, as the Irish firm finally generates revenues from the long-delayed and controversial €3.6bn Corrib Gas field.

The increase of €50m in capital at Shell E&P Ireland Ltd is confirmed in new documents lodged with the Companies Office, which show that the authorised share capital at the firm now stands at €1.4bn.

Shell and its Corrib Partners over 2015 and 2014 spent €580m, made up of an investment of €260m last year and €320m in 2014 to bring gas ashore. read more

Shell Nigeria deal probed in Italy

Screen Shot 2016-03-31 at 09.01.52

The oil giant said it was cooperating with the authorities.

The probe is connected to the 2011 $1.3bn purchase of Nigeria’s OPL-245 offshore oil block by Eni and Shell.

As part of the investigation, Shell headquarters in The Hague were searched in February by Dutch police and prosecutors, a spokesman added.

“We can confirm we have received notice of proceedings from the public prosecutor in Italy,” the Shell spokesman said.

In 2014 a Milan court starting probing Italian oil giant Eni over allegations of corruption connected to the OPL-245 offshore oil block acquisition. read more

Shell Looking To Sell The Famous Brent Field, But Who Will Buy?

Screen Shot 2016-02-03 at 09.15.31

Screen Shot 2016-03-31 at 08.49.46

Screen Shot 2016-03-15 at 10.34.57By Irina SlavPosted on Wed, 30 March 2016

Royal Dutch Shell has confirmed media reports that it is looking to sell part of its production holdings in the North Sea, saying all these assets—33 in total, including the Brent field that gave its name to the international benchmark—are being reviewed along with others, in other parts of the world.

The sale is part of Shell’s efforts to raise around $30 billion to restore some of the money it spent on buying BG Group for around $57 billion. Plans are to carry out the sales over the next three years. read more

Shell faces corruption probe over $1bn oil deal in Nigeria

Screen Shot 2016-03-30 at 18.33.06

The Italian newspaper Corriere della Sera reported that the Dutch Financial Intelligence and Investigation Service (FIOD) and the Dutch public prosecutor had raided the multinational’s office in the Hague.

FULL ARTICLE

Shell is now being dragged into the investigation

Shell headquarters visited by corruption investigators

Screen Shot 2016-03-30 at 18.22.48

The international oil company said on Wednesday it was co-operating with officials from both the Netherlands and Italy as they investigate the $1.1bn deal, which Shell signed five years ago alongside Eni, the Italian oil company.

Shell also confirmed it had been placed under investigation by prosecutors in Milan…

FULL FT ARTICLE

Malabu $1.3 billion scandal: Dutch investigators question Shell officials

Screen Shot 2016-03-30 at 16.51.37

PREMIUM TIMES had reported how Shell and Italian oil giant, Eni, agreed to secretly pay $1.3 billion to Malabu through the Nigerian government in 2011.

The money was meant for OPL 245, one of the largest oil blocs in Africa which was awarded to Malabu in 1998 when Dan Etete was the petroleum minister under the late dictator, Sani Abacha.

After Shell and Eni paid the money into Nigeria’s accounts in JP Morgan bank, London, the federal government transferred $801 million of the money into Malabu accounts controlled by Mr. Etete in Nigeria. read more

Shell dragged into Nigeria oil corruption probe

Screen Shot 2016-03-30 at 16.40.24

“We can confirm that representatives of the Dutch Financial Intelligence and Investigation Service (FIOD) and the Dutch Public Prosecutor recently visited Shell at its headquarters in The Hague,” a spokesman said.

“The visit was related to OPL 245, an offshore block in Nigeria that was the subject of a series of long-standing disputes with the Federal Government of Nigeria. Shell is cooperating with the authorities and is looking into the allegations, which it takes seriously.” read more

Shell Meets Investigators About Role in Nigeria Deal

Screen Shot 2016-03-30 at 13.26.22

The Anglo-Dutch oil company said the recent visit by the Dutch Financial Intelligence and Investigation Service and the Dutch Public Prosecutor to the company’s headquarters in The Hague was about a Nigerian oil block that has been the subject of an Italian criminal investigation.

FULL ARTICLE

Shell says Dutch investigators visit Shell HQ in Nigeria oil probe

Screen Shot 2016-03-30 at 13.11.52“Representatives of the Dutch Financial Intelligence and Investigation Service and the Dutch Public Prosecutor recently visited Shell at its headquarters, ” a spokesman said.

“The visit was related to OPL 245, an offshore block in Nigeria that was the subject of a series of long-standing disputes with the Federal Government of Nigeria.”

Shell is cooperating with the authorities and is looking into the allegations, the spokesman said.

(Reporting by Ron Bousso. Editing by Jane Merriman) read more

Italian prosecutors probe Shell over Nigeria oil deal – source

Screen Shot 2016-03-30 at 13.05.44

Milan prosecutors opened a corruption probe into Eni in 2014 in a case relating to a $1.3 billion acquisition of Nigeria’s OPL-245 offshore oil block in 2011 by the Italian company and Shell.

They later placed under investigation Eni’s Chief Executive Claudio Descalzi and another top manager at the company. The probe has now been widened to Shell, the source said, confirming a report in Corriere della Sera daily on Wednesday.

Shell declined to comment. Eni has denied any wrongdoing in the case. read more

Shell’s belligerent partner, Russia

Screen Shot 2016-03-29 at 12.57.25

Extracts from an article by Kyle Mizokami published by THE WEEK: 29 MARCH 2016

Russia is staking its claim to the Arctic and is being more than a little unreasonable about it. In 2007 Russian robotic submarines planted the national flag under the North Pole. Russia claims the North Pole on the grounds that the Lomonosov Ridge, an extension of Russia’s continental shelf territory, passes underneath the pole.

Russia is preparing to back its claims up, too: As of 2015, it had established six new bases north of the Arctic Circle, including 16 deepwater ports and 13 airfields. Russia has deployed advanced S-400 long-range surface-to-air missiles, as well as “Bastion” supersonic anti-ship missiles, to protect Arctic bases. The vastness of the Arctic means these weapons don’t threaten other countries, but they do create fortified bases that will allow Russia to springboard ships, planes, and Arctic-trained troops into contested territory. read more

Man-made earthquakes put millions at risk, report says

Screen Shot 2016-03-28 at 23.24.59

Doyle Rice, USA TODAY: 28 MARCH 2016

If you live in Oklahoma, Kansas, Texas, Colorado, New Mexico and Arkansas beware: You are nearly as likely to experience an earthquake as high-hazard areas such as California, but the risk is man-made.

That’s the conclusion in a first-ever report made public Monday from the U.S. Geological Survey, which cites the oil and gas drilling process as triggering the quakes.  The assessment of human-induced seismic shaking found 7 million people in the central and eastern U.S. live in the man-made earthquake zone,  said Mark Petersen, head of the USGS National Seismic Hazard Mapping Project. read more

Shell’s GameChanger Program: Turning Frogs into Princes

Screen Shot 2016-03-28 at 23.00.19

Screen Shot 2016-03-15 at 10.34.57by Nicholas Newman: Rigzone Contributor: Monday, March 28, 2016

Royal Dutch Shell plc established its reputation for ground-breaking innovation with the design and construction of the world’s first commercial liquefied natural gas (LNG) plant in Algeria in 1964. Today, the need to be ever more innovative is crucial, given the crash in oil and gas prices, which is forcing extreme cuts throughout the industry value chain. In addition, the fossil fuel industry is coming under pressure from the adoption of policies aimed at combating climate change making long-term investments commercially much more difficult to justify.  read more

Floating LNG hopes are deflated by Browse, Abadi decisions

Screen Shot 2016-03-28 at 11.32.24

Angela Macdonald-Smith: 28 March 2016

Questions are being asked about whether floating LNG technology will live up to its hype after last week’s decision by Woodside Petroleum’s Browse gas venture to freeze work was followed by the axing of a floating design for the Abadi gas field in Indonesia.

The decisions are seen as major setbacks for the innovative technology that was expected to revolutionise the industry by allowing remote offshore gas fields to be developed more cheaply and with less environmental impact. read more

Oil giants replace 75pc of production in 2015

Screen Shot 2016-03-28 at 11.18.24By SARAH KENT: March 27, 2016

LONDON—The world’s biggest oil companies are draining their petroleum reserves faster than they are replacing them—a symptom of how a deep oil-price decline is reshaping the energy industry’s priorities.

In 2015, the seven biggest publicly traded Western energy companies, including Exxon Mobil Corp. and Royal Dutch Shell PLC, replaced just 75% of the oil and natural gas they pumped, on average, according to a Wall Street Journal analysis of company data. It was the biggest combined drop in inventory that companies have reported in at least a decade. read more

Former Centrica boss in talks to buy Shell oil assets

Screen Shot 2016-03-28 at 10.58.03

By Jillian Ambrose, business reporter: 27 MARCH 2016

A $5bn investment fund, led by former Centrica boss Sam Laidlaw, is in talks to snap up assets from Shell’s $30bn oil and gas divestment drive.

Neptune Oil and Gas was launched last summer to hunt for oil and gas bargains, and has confirmed that it is in talks with Bank of America Merrill Lynch to take advantage of Shell’s ambitious sales plans.

A spokesman for the fund said that Shell’s assets are being considered as part of its wider strategy to target large-scale investment in distressed assets in the North Sea, North Africa and South East Asia. read more

Arctic Conservation Efforts Held Up By Shell Permits From 1970s

Screen Shot 2016-03-28 at 10.32.36

By Bob Weber, The Canadian Press: Posted: 03/27/2016

Environmentalists say talks on creating a third national marine conservation area are being held up over Arctic offshore energy exploration permits that may not legally exist.

“Looking at the permits, it looks like the rights expired in 1979,” said Alex Speers-Roesch of Greenpeace.

The federal government has been trying for years to protect the waters of Lancaster Sound, the eastern gate of the Northwest Passage and home to a wealth of Arctic seabirds and mammals. The effort is strongly supported by local Inuit hunters and land claim groups. read more

Shell plans North Sea sell-off as falling crude price makes many of its sites less profitable

Screen Shot 2016-03-27 at 23.17.28

By CITY & FINANCE REPORTER FOR THE DAILY MAIL: PUBLISHED: 27 March 2016

Shell has hired advisers to sell some of its North Sea oil operations as the falling price of crude makes sites less profitable.

Bank of America Merrill Lynch, Lazard and Morgan Stanley have held talks with a number of suitors, including Neptune Oil and Gas, the investment firm set up by former Centrica boss Sam Laidlaw.

The oil industry has been scaling back investments in the North Sea because of the tumbling price of crude. Shell has said it would make disposals worth £21billion. read more

Shell may offload its North Sea operations

Screen Shot 2016-03-27 at 22.49.44

Ben Chu: 27 March 2016

Shell is reportedly exploring a sale of North Sea oil assets. The oil major, which has completed its $35bn (£25bn) merger with BG, has begun sounding out buyers for operations. 

Shell’s boss, Ben van Beurden, has already pledged to divest $30bn (£21.5bn) of assets globally and has described the North Sea as “old and mature”.

The Sunday Times reported that there have been early talks with Neptune Oil & Gas, which was set up by Sam Laidlaw, the former boss of Centrica. About 2,500 of Shell’s 7,500 employees work in the North Sea. BG was created in 1997 when British Gas divested Centrica. read more

Shell considers North Sea sell-off in bid to raise $30bn

Screen Shot 2016-03-27 at 21.19.29

Written by Rita Brown – Sunday 27/03/2016

Shell today confirmed it was considering a North Sea sell-off in a bid to balance its financial books after completing its $35billion mega takeover of BG.

The operator is currently looking to raise $30billion from asset sales from its global portfolio.

A company spokesperson said its North Sea assets could make-up part of the re-shuffle.

The spokesman said: “A review of all assets, including those in the North Sea, is under way as part of our commitment to the $30bn asset sale.” read more

Shell weighs North Sea assets for potential sales

Screen Shot 2016-03-27 at 17.18.36

Pilita Clark in London: 27 March 2016

Royal Dutch Shell has confirmed it is reviewing the case for selling some of its North Sea assets in the wake of its £35bn takeover of rival oil and gas producer, BG Group.

Shell has nearly 2,500 employees in the North Sea, where it has operated more than 33 offshore installations.

FULL FT ARTICLE

Shell prepares North Sea sale after BG tie-up

Screen Shot 2016-03-27 at 09.54.44

Danny Fortson: Published: Sunday 27 March 2016

SHELL has quietly begun sounding out buyers for parts of its sprawling North Sea operations amid a slump that has seen the industry shed tens of thousands of jobs.

Europe’s biggest oil company strengthened its presence in the basin just last month when it completed its blockbuster £35bn takeover of rival BG.

Chief executive Ben van Beurden is under pressure to justify the price and has pledged to sell up to $30bn (£21bn) of assets. Sources close to the situation said Shell has no plans to exit completely but could dramatically shrink its footprint.

It is understood that Bank of America Merrill Lynch, which has been hired to lead the process, has held early talks with potential buyers including Sam Laidlaw, the former Centrica boss who last year launched the $5bn Neptune Oil & Gas fund to buy energy assets. read more

The downside of cheap oil

Screen Shot 2016-03-25 at 16.31.48

By Ed Crooks: 25 March 2016

Probably the greatest puzzle of the oil crash is why it hasn’t done more to strengthen global growth. The shift in purchasing power from companies and governments of oil-producing countries to consumers puts money in the pockets of people who are more likely to spend it, and that should act as a stimulus. It hasn’t quite worked out like that.

This week the FT launched a series titled ‘Lower for Longer’ exploring some of the reasons why. Number One on the list of likely explanations is the mountain of debts the industry built up during the boom times. Oil and gas company debt almost tripled from $1.1tn to $3tn between 2006 and 2014, according to the Bank for International Settlements, which has done some important research on the issue.  The oil industry, energy markets and the world economy are all struggling with the burden of that debt: the hangover after the oil investment boom of the past decade. Investors have lost at least $150bn in oil and gas company bonds, and over $2tn in equity values. read more

Is It Finally Time To Give Up On Royal Dutch Shell Plc?

Screen Shot 2016-03-24 at 15.37.47

By Royston Wild – Thursday, 24 March, 2016

To suggest the game is up at Shell (LSE: RDSB) could be considered ludicrous given the investor stampede of recent weeks.

The fossil fuel giant has seen its share price explode 30% in the past two months, moving in lockstep with the Brent benchmark’s surge back above the $40 per barrel milestone.

But with data surrounding the oil sector still worsening, I see little reason for crude’s recent march higher, leaving Shell’s share price in danger of a massive reversal. read more

Shell says no changes in plans to expand Russian Sakhalin-2 LNG plant

Screen Shot 2016-03-24 at 14.53.47Thu Mar 24, 2016

MOSCOW, March 24 (Reuters) – There are no changes in plans to expand Russia’s Sakhalin-2 liquefied natural gas plant, operated by Royal Dutch Shell and Gazprom, Olivier Lazare, head of Shell’s operations in Russia, said on Thursday.

Gazprom and Shell plan to expand their plant on the Pacific island of Sakhalin, where Japan’s Mitsui and Mitsubishi are also shareholders, to add a further 5.4 million tonnes of annual capacity in 2021.

(Reporting by Vladimir Soldatkin; Writing by Maria Kiselyova; Editing by Alexander Winning) read more

Giant Indonesia Offshore Gas Project Sunk by Nationalist, Economic Pressure

Screen Shot 2016-03-24 at 14.48.03

By BEN OTTO: Updated March 24, 2016

JAKARTA, Indonesia—Indonesia’s rejection of a $15 billion gas project by Inpex Corp. and Royal Dutch Shell PLC. bodes ill for the revival of the flagging petroleum industry and highlights the nationalist pressures facing foreign investment in Southeast Asia’s largest economy, energy analysts say.

Inpex and Shell suffered a blow Wednesday in their joint bid to develop one of Southeast Asia’s largest known deep-water gas blocks.

FULL ARTICLE

Indonesia says Inpex, Shell to invest in Masela onshore LNG project

Screen Shot 2016-03-24 at 08.35.19

JAKARTA, Markets | Thu Mar 24, 2016

Japanese oil firm Inpex Corp and Royal Dutch Shell are expected to invest in the construction of Indonesia’s onshore Masela liquefied natural gas plant, an energy regulator official said on Thursday.

“Inpex and Shell have no plan to withdraw from the Masela block. They will stay, but they need time to redo their plan for onshore,” said Amien Sunaryadi, head of Indonesia’s upstream oil and gas regulator, SKKMigas.

Indonesia’s president on Wednesday rejected Inpex and Shell’s proposal to build the world’s largest floating liquefied natural gas plant in the country’s east, saying an onshore plant would benefit its economy more. read more

ABB wins five-year Shell contract for Prelude FLNG

Screen Shot 2016-03-24 at 08.26.24

Stuart McKinnon – The West Australian on March 24, 2016

The Malaga factory of Swiss multinational engineering giant ABB will be the focal point for a five-year contract to provide services and equipment to Shell’s Prelude floating LNG facility off the Kimberley coast.

The Shell order includes the delivery of motors, generators, variable speed drives and low-voltage switchgear and guarantees service and lifecycle management of the electrical equipment as well as service and support for motors from third-party vendors. read more

Statoil Fuels and Retails wins EU okay for Shell deal

Screen Shot 2016-03-24 at 08.14.19Business | Wed Mar 23, 2016

Statoil Fuel and Retail gained European Union antitrust approval on Wednesday for its acquisition of Shell’s (RDSa.L) Danish retail and wholesale fuels business after agreeing to sell some businesses to allay competition concerns.

The European Commission had been concerned that the deal could have led to Danish consumers paying more for their fuel, diesel, gasoline and light heating oil.

Statoil Fuel and Retail, which operates in Denmark under the Statoil brand and is controlled by Canadian company Alimentation Couche-Tard (ATDb.TO), received the EU green light after pledging to sell 205 petrol stations and Shell’s commercial fuels business. read more

Australian Energy Giant Woodside Delays Large Offshore L.N.G. Project

Screen Shot 2016-03-24 at 07.57.24

Screen Shot 2016-03-24 at 07.59.44

Screen Shot 2016-03-24 at 08.04.20

By STANLEY REED: A version of this article appears in print on March 24, 2016, on page B2 of the New York edition

Woodside Petroleum and its partners, including the energy giants Royal Dutch Shell and BP, have decided to delay indefinitely the development of a huge liquefied natural gas project off Western Australia, the company said on Wednesday.

The decision to postpone the project, called Browse, comes as L.N.G. prices in Asia have fallen by around two-thirds since 2014. The slump is attributed to a supply glut set off largely by a building boom and by lower-than-expected demand from major customers like China. read more

Where does the cancellation of Browse and Masela leave Prelude?

Screen Shot 2016-03-23 at 12.49.10

Screen Shot 2016-03-23 at 12.53.14From a Regular Contributor

Cancellation of both the Browse and Masela FLNG developments on the same day suggests that the issues about which Bill Campbell has warned may finally have won the day. 

If so, this is a huge climbdown for Shell, with several billion dollars in probable write-offs. 

It’s perhaps not surprising, given the plethora of warnings from technical sources that there were serious risks involved. 

Could Prelude be next to be axed? Parking a multi-billion dollar vessel in cyclone alley for 20 years never seemed like the most appropriate use of the pension funds invested in Shell… read more

One Floating LNG Dream Sinks As Another Gets Ready To Float

Screen Shot 2016-03-23 at 12.29.49

One Floating LNG Dream Sinks As Another Gets Ready To Float

Screen Shot 2016-03-15 at 10.34.57Unfortunately for Shell it formally committed to the Prelude development in May, 2011, a time when oil was selling for around $120 a barrel, three-times the current price of around $41/bbl.

Screen Shot 2016-03-23 at 12.32.16

By Tim Treadgold: March 23, 2016

No-one blinked and share prices barely fluttered when a $40 billion plan by Australia’s Woodside Petroleum ngIf: ticker to develop a floating liquefied natural gas (LNG) project was torpedoed earlier today.

However, the knock-on consequences of sinking the Browse project will be felt most acutely at Europe’s biggest oil company, Royal Dutch Shell ngIf: ticker .

The immediate impact on Shell is that it has a 27% interest in the Woodside-led Browse LNG project, but it is also nearing completion of the world’s biggest floating LNG barge, the $12.6 billion Prelude project. read more

Woodside halts Australian LNG project

Screen Shot 2016-03-23 at 12.12.34

By Daniel J. Graeber: March 23, 2016

PERTH, Australia, March 23 (UPI) — Australian energy company Woodside said it was putting a hold on the development of its Browse liquefied natural gas project because of market conditions.

Woodside said that, even with front-end engineering and design work completed, weak economic and market conditions meant it was necessary to put a hold on the $50 billion facility.

“We have undertaken a comprehensive and rigorous process to assess all elements of the development,” Woodside CEO Peter Coleman said in a statement. “The decision represents a disciplined approach to large-scale capital investment and is consistent with our requirements for a development concept to be commercially robust across a range of scenarios.” read more

Wood Group extends deal with Shell’s Scots gas sites

Screen Shot 2016-03-23 at 11.52.18

Screen Shot 2016-03-23 at 11.53.46

Screen Shot 2016-03-23 at 11.58.22

Screen Shot 2016-03-15 at 10.34.57GARETH MACKIE: Wednesday 23 March 2016

Oil and gas services giant Wood Group has secured a new three-year contract covering three Shell sites north of the Border.

The deal, which has the option to be extended for a further four years, will see Wood Group Industrial Services (WGIS) provide maintenance and site support at the St Fergus and Mossmorran gas processing plants in Aberdeenshire and Fife, as well as Braefoot Bay marine terminal near Aberdour.

Aberdeen-based Wood said the contract builds on its 20-year history supporting Shell on the assets. read more

Woodside Petroleum drops $40 billion Browse floating LNG project

Screen Shot 2016-03-23 at 12.01.23

Screen Shot 2016-03-15 at 10.34.57Shell, Woodside’s biggest partner in the project, had also spoken cautiously on its prospects…

Angela Macdonald-SmithEnergy Reporter: 23 March 2016

Woodside Petroleum chief executive Peter Coleman is turning a keener eye to potential acquisitions after a decision by the Browse joint venture to ditch a $40 billion-plus floating LNG project freed up the company to chase “attractive” assets.

The indefinite deferral of the Browse project off the north-west coast was forced by the collapse in oil prices, which created an “extremely challenging external environment” for the huge project despite work done to reduce costs, Woodside said. read more

Shell offshore team loses Styrofoam pipe floats at sea

Screen Shot 2016-03-23 at 11.27.02

Screen Shot 2016-03-15 at 10.34.57By Brett Ruskin, CBC News Posted: Mar 22, 2016

Eight large sections of Styrofoam are adrift at sea — and there’s no plan to recover them.

The abandoned floats broke loose from a pipe used for drilling operations, following an incident earlier this month that has suspended Shell Canada’s search for oil off Nova Scotia’s coast.

“Until such time as the board is satisfied that operations can proceed safely, drilling will remain suspended,” said Kathleen Funke, spokesperson for the Canada-Nova Scotia Offshore Petroleum Board (CNSOPB).

On March 5, weather conditions deteriorated near Shell Canada’s newest exploratory well — named Cheshire — approximately 225 kilometres off the coast. read more

BG demands government raise price of gas to $7 per million BTUs

Screen Shot 2016-03-23 at 11.13.08

Mohamed Adel: 22 March 2016

Screen Shot 2016-03-15 at 10.34.57BG, a subsidiary of Royal Dutch Shell, is negotiating with Egyptian General Petroleum Corporation (EGPC) to price gas at $7 per million BTUs in the 9B concession area in Egyptian Mediterranean waters. EGPC has offered $ 5.88 per million BTUs.

A source close to the negotiation process told Daily News Egypt that the BG, with a representative from Royal Dutch Shell, leads the negotiations regarding pricing of gas produced from 9B and agreed on the price of $5.88 per million BTUs with a condition of paying $ 1bn in dues to BG. read more

Indonesia decides against Inpex floating LNG project, wants to stay onshore

Screen Shot 2016-03-23 at 11.07.01

Screen Shot 2016-03-15 at 10.34.57* President says onshore plan to bring more economic benefits

* Unclear if Inpex, Shell will be involved in new plan

* Onshore facility to be built in eastern province of Maluku 

By Agustinus Beo Da Costa and Fergus Jensen

JAKARTA, March 23 Indonesia’s president on Wednesday rejected Inpex Corp and Royal Dutch Shell’s proposal to build the world’s largest floating liquefied natural gas plant in the country’s east, saying an onshore plant would benefit its economy more.

The announcement is a blow to the two energy firms, as well as to Indonesia’s energy regulator (SKKMigas), which warned last week that rejecting the $15 billion plan to process gas from the Masela field offshore would lead to delays and job cuts. read more

Shell Gas Project in Indonesia Risks Running Out of Steam

Screen Shot 2016-03-23 at 10.50.37

President Joko Widodo’s decision for an onshore scheme is estimated to add more than $5 billion to the project’s cost

By BEN OTTO: March 23, 2016 

JAKARTA, Indonesia—Inpex Corp. and Royal Dutch Shell PLC. suffered a blow Wednesday in their $14 billion bid to exploit a deep-water gas field in Indonesia, after President Joko Widodo declared the scheme must make use of an onshore refinery rather than a proposed floating facility.

Inpex, the project’s planned operator, and partner Shell proposed six months ago to build a massive floating facility to exploit a major gas field in the country’s remote east known as Masela. read more

Scientists Warn of Perilous Climate Shift Within Decades, Not Centuries

Screen Shot 2016-03-23 at 10.43.46

By JUSTIN GILLISA version of this article appears in print on March 23, 2016, on page A11 of the New York edition

The nations of the world agreed years ago to try to limit global warming to a level they hoped would prove somewhat tolerable. But leading climate scientists warned on Tuesday that permitting a warming of that magnitude would actually be quite dangerous.

The likely consequences would include killer storms stronger than any in modern times, the disintegration of large parts of the polar ice sheets and a rise of the sea sufficient to begin drowning the world’s coastal cities before the end of this century, the scientists declared.

“We’re in danger of handing young people a situation that’s out of their control,” said James E. Hansen, the retired NASA climate scientist who led the new research. The findings were released Tuesday morning by a European science journal, Atmospheric Chemistry and Physics.

A draft version of the paper was released last year, and it provoked a roiling debate among climate scientists. The main conclusions have not changed, and that debate seems likely to be replayed in the coming weeks. read more

CNOOC and Shell take final investment decision to expand petrochemical complex in China

Screen Shot 2016-03-22 at 11.50.51

TUESDAY, MARCH 22, 2016

China National Offshore Oil Corporation (CNOOC) and Shell Nanhai B.V. today announce the final investment decision to expand CNOOC and Shell Petrochemical Company’s (CSPC) existing 50:50 joint venture (JV) in Huizhou, Guangdong Province, China. This decision follows the announcement of a Heads of Agreement in December 2015 between the two partners. Subject to regulatory approvals, CNOOC and Shell have agreed that CSPC should take over CNOOC’s ongoing project to build additional chemical facilities next to CSPC’s petrochemical complex. read more

Brunei bans Christmas: Sultan warns those celebrating could face up to five years in jail

Screen Shot 2016-03-21 at 12.17.45

Screen Shot 2016-03-21 at 12.16.22The punishment for celebrating Christmas is a fine of $20,000, up to five years in prison or both

Anyone found illegally celebrating Christmas in Brunei could face up to five years in prison, according to a reported declaration by the Sultan of the tiny oil-rich state.

Brunei introduced its ban on Christmas last year over fears that celebrating it “excessively and openly” could lead its Muslim population astray.

Christians and others can celebrate Christmas, but must do so in private and have to first alert the authorities.

Local Islamic religious leaders have promoted the ban, warning that adopting the trappings of Christmas is tantamount to imitation of another faith, prohibited in some interpretations of Islam. read more

Royal Brunei Airlines’ first all-female pilot crew lands plane in Saudi Arabia – where women are not allowed to drive

Screen Shot 2016-03-21 at 12.20.58

The first ever all-female flight deck crew for Royal Brunei Airlines has operated a plane from Brunei to Jeddah in Saudi Arabia.

Although it was a milestone for the airline, the pilot crew touched down in a country where women are still not allowed to drive a car.

FULL ARTICLE

Largest U.S. refinery now belongs to Saudi Arabia

Screen Shot 2016-03-20 at 18.42.08

Reuters reported that the relationship started to fray after Motiva announced a $10 billion expansion of the Port Arthur refinery, doubling its capacity to 603,000 barrels per day, making it America’s largest refinery. It produced gasoline, diesel and jet fuel. A leak shortly after the expansion was completed in 2012 led to ballooning costs, exacerbating tension between Shell and Aramco. A 2015 workers strike also sparked anger between the two companies.

The two companies signed a nonbinding letter of intent, a plan that would divide up Motiva’s refineries between them. The refineries have a combined capacity of 1.1 million barrels per day and are all located close to each other. The breakup will allow Saudi Aramco to take over the Port Arthur refinery and 26 distribution terminals, and Aramco will also hold onto the Motiva brand name. Shell will take over the other two refineries, Convent and Norco, both located in Louisiana. Shell said that it would operate the two refineries as one plant with a combined throughput of 500,000 barrels per day. read more

Iraq Exports First Natural Gas Shipment in Its History

Screen Shot 2016-03-20 at 15.56.45

By THE ASSOCIATED PRESS: MARCH 20, 2016

BAGHDAD — Iraq on Sunday exported the first shipment of natural gas in its history, a key development for the OPEC member struggling to feed a cash-strapped economy amid an expensive fight against the Islamic State group.

The move revives a long-sought ambition by Iraq to be a gas exporter, thanks to a joint venture with Anglo-Dutch Royal Dutch Shell PLC and Japan’s Mitsubishi Corp. Iraq first planned to begin exporting gas in the late 1970s, but that timeline was delayed by the Iraq-Iran war when Iraqi export ports were bombed. read more

Nigeria to Launch Environmental Cleanup

Screen Shot 2016-03-20 at 08.22.51

Screen Shot 2016-03-20 at 08.24.50

Screen Shot 2016-03-15 at 10.34.57Shell Oil Co., a division of Royal Dutch Shell, admitted blame for oil spills in Ogoniland.

Peter Clottey: March 19, 2016 5:19 PM

Nigeria plans a massive cleanup in the oil-rich Niger Delta region, where some residents complain that years of poorly regulated petroleum production have taken a toll on vegetation, water quality, farmland and fishing communities.  

Alhaji Ibrahim Usman Jibril, minister of state for environment, said President Muhammadu Buhari is committed to resolving the country’s environmental challenges while creating jobs and ensuring sustainable development.

As evidence of that commitment, Jibril noted Buhari created two cabinet positions for the sector. Amina Mohammed is the minister for the environment. read more

Shell celebrates 75 years of partnership with Saudi Arabia

Screen Shot 2016-03-20 at 08.13.26

Screen Shot 2016-03-20 at 08.15.08

Screen Shot 2016-03-20 at 08.19.55
Mar 20, 2016

RIYADH – Shell in Saudi Arabia commemorated its 75th anniversary at an event hosted on Wednesday in the presence of Prince Sultan Bin Salman, President and Chairman of the Board Saudi Commission for Tourism and Antiquities (SCTA) as the guest of honor and Shell’s CEO Ben van Beurden. In attendance were Prince Mohammed K.A. Al-Faisal, CEO of Faisaliah Group; Abdulaziz bin Turki Al Faisal, Khalid Al-Falih, Minister of Health and Chairman of the Board of Saudi Aramco; Amin Nasser, CEO of Saudi Aramco, and Sheikh Mohammed Al Jomaih. read more

%d bloggers like this: