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Ukraine Discomfort for Shell and Chevron

Screen Shot 2014-03-04 at 17.39.57Shell entered into the deal in 2013 with then Putin puppet President Viktor Yanukovych, before he was ousted. As can be seen in the FT article, Shell and Chevron are now both trying to hide behind claimed business principles. Its a bit late for that.

By John Donovan

The Financial Times has published an article about the uncomfortable position of Shell and Chevron in the Ukraine crisis.

Extract

Getting caught up in a war zone ranks among the worst-case scenarios for an oil company. This has happened to Royal Dutch Shell in eastern Ukraine, where heavy fighting between pro-Russian separatists and Ukrainian military forces continues.

What is even worse is that both energy giants have Ukrainian partners in shale gas deals with dubious connections to the former regime, in a country famed for corruption.  read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Chevron Cancels Bulgaria Fracking, Shell Postpones Ukraine Plans

Screen Shot 2014-06-24 at 10.28.09

Screen Shot 2014-03-04 at 17.39.57Extracts from a CorpWatch article by Richard Smallteacher publish 12 June 2014

Fracking for oil and gas across Europe has suffered a series of setbacks with Chevron closing its offices in Sofia, Bulgaria, and Shell postponing fracking plans in the Ukraine by at least two years. Meanwhile the French government is standing firm in its opposition to fracking. Shell announced that it would take a respite from drilling for gas in the 8,000-square-kilometer Yuzivska field in the eastern Ukraine in early June. The company was awarded the concessions by the government of Viktor Yanukovych in January 2013, a year before he was ousted from office by violent protests this past February. Since then, clashes between government forces and pro-Russian militias have caused Shell to reconsider, not least because Shell has other lucrative energy deals in Russia. “We obviously need to assess the future security situation as it develops because the safety of our own people is our first priority,” Simon Henry, Shell’s chief financial officer, told Bloomberg TV. “Russia is a major holder of hydrocarbon reserves, possibly the largest in the world. So in the long term it really does matter.” read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

The Real Reason Shell Halted Its Ukrainian Shale Operations

Screen Shot 2014-02-10 at 16.29.29Extract from an OilPrice.com article by Igor Alexeev published 19 June 2014

Royal Dutch Shell has blamed air strikes by the government in Kiev against its own citizens in southern Ukraine as the reason it decided to declare a halt to its shale oil projects in the troubled region. In reality, the truth may be closer to the fact that company is disappointed with the economic viability of what it once thought was a large shale deposit and is looking for a way out. According to a recent statement by the former head of Royal Dutch Shell, Peter Voser, “the company is now analyzing its business in shale,” which, translated from the streamlined language of press releases, means: The project is not earning its keep and we need to do something (Read: write off expenses).
read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

For Western Oil Companies, Expanding in Russia Is a Dance Around Sanctions

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Royal Dutch Shell Plc Chief Executive bows to President Putin during a meeting in Moscow April 2014: Maxim Shipenkov/European Pressphoto Agency

Extracts from a New York Times article by ANDREW E. KRAMER and STANLEY REED published in print 10 June 2014

Despite the push by Western governments to isolate Moscow for its aggression in Ukraine, energy giants are deepening their relationships with companies here by striking deals and plowing more money into the country. Royal Dutch Shell’s chief executive, Ben van Beurden, met with Mr. Putin in April and told him, “Now is the time to expand,” referring to a liquefied natural gas plant project. The companies are taking a calculated risk, given the threat of further sanctions. The risk for energy companies is that the next stage of sanctions, called the third phase, will be broader, cutting off dealings with major sectors of the economy like finance, metals and energy. The United States and its allies proposed such sanctions at a Group of 7 summit meeting in Brussels last week, to be carried out if the violence in Ukraine did not subside within a month. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Ukraine Crisis Forces Shell to Halt Shale Wells in Restive East

Screen Shot 2014-02-10 at 16.29.29Extract from a Bloomberg/Businessweek article by Ladka Bauerova and Will Kennedy published 3 June 2014

Royal Dutch Shell Plc (RDSA) has halted drilling for shale gas in eastern Ukraine to protect its personnel from clashes between pro-Russian separatists and the Ukrainian army. Shell is taking a “time-out” on exploration work after drilling two wells since the Hague-based explorer signed a production-sharing agreement last year, Chief Financial Officer Simon Henry said in an interview with Bloomberg TV in London.  “We obviously need to assess the future security situation as it develops because the safety of our own people is our first priority,” Henry said. “There’s no pulling out, but we take a time out on the actual drilling activity on the ground.” read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Sanctions fear forces Shell to end all new Russian investment

Screen Shot 2014-02-10 at 16.29.29Extract from an article by Ben Hoyle and Lily Hyde published May 1 2014 by The Times

Europe’s biggest oil company froze all future investment in Russia over the Ukraine crisis yesterday as the IMF said that the Kremlin faced an imminent recession because of Western sanctions. Royal Dutch Shell, one of the biggest foreign investors in Russian energy, warned that it would not “be jumping into new investments anytime soon” because sanctions beefed up by America and Europe in the past week could curtail its own operations.  read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Big Oil dollars flow into Ukraine, despite conflict

Screen Shot 2014-02-10 at 16.29.29Extracts from a CNBC article by  published 1 May 2014

Yuriy Boyko, an ethnic Ukrainian and former energy minister under ousted President Viktor Yanukovich, told CNBC that he has met with senior executives of Royal Dutch Shell about investments or potential investments in the country. Royal Dutch Shell is currently the biggest player in the Ukrainian market. The company declined to comment on specific dollar figures, but said that it has ongoing operations in the region.  Shell spokesman Curtis Smith told CNBC that it employs about 2,500 people in Ukraine, many as contract workers. The company is involved in two exploration projects, both in eastern Ukraine, including in the Donetsk and Kharkov regions, the most troubled in the country. To date, the company said operations have not been affected despite rising tension in those areas. “We continue to prepare for exploration activities on Yuzivska area,” Smith told CNBC. “We monitor trade controls and sanctions closely and will respond appropriately to ensure that we comply with all applicable international sanctions and related measures.”    read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell: not entering new Russia investments

Shell's Ben van Beurden bows to Putin on Good Friday, 18 April 2014

Shell’s Ben van Beurden bows to Putin on Good Friday, 18 April 2014

Extracts from an article by AP Business Writer TOBY STERLING published 30 April 2014

AMSTERDAM (AP) – Royal Dutch Shell PLC says it will not be entering new investments in Russia anytime soon as tensions rise over the country’s confrontation with Ukraine. Chief Financial Officer Simon Henry said the company, Europe’s largest oil company, will continue to oversee its existing operations and will cooperate with any sanctions placed upon Russia by Western powers. Amid the uncertainty, however, it will hold back on starting new projects. Meanwhile, Henry defended a meeting this month between Shell CEO Ben van Beurden and Russian President Vladimir Putin, saying it should not be interpreted as the company taking sides in the Ukrainian crisis. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

BP And Shell Have Problems, But Manageable Ones, With The Russian Sanctions

Screen Shot 2014-04-26 at 10.44.49Extract from a Forbes article by Tim Worstall published 29 April 2014

The imposition of sanctions on various Russian people and organisations over the Ukraine threatened to pose a number of problems for the big energy companies, especially BP and Shell. If Rosneft itself were placed on the list, for example, or Gazprom, the the respective situations for BP and Shell would change markedly. …obviously neither of them is going to flout the law of a country where they have such considerable interests, as they do in the US.  read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

BP and Shell to be exposed as G7 plans for sectoral sanctions against Russia

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Screen Shot 2014-04-26 at 10.44.49Extract from Forex Live article by Mike Paterson published 28 April 2014

…part of the US plans looks likely to have a serious impact on UK energy giants BP and Shell The US Treasury is also eyeing some form of sanction against Gazprombank, the financial arm of the gas monopoly Gazprom. This would greatly complicate Shell’s joint operations with Gazprom…

FULL ARTICLE

RELATED: U.S. Sanctions Target Putin’s Inner Circle 

Extract

The Obama administration imposed sanctions on seven Russian officials and 17 companies linked to Russian President Vladimir Putin’s inner circle involved in banking, energy and infrastructure. The list includes Igor Sechin, OAO Rosneft chief executive officer… read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

BP and Shell exposed as US prepares first warning shot against Russia’s oil and gas industry

Firms may be forced to curtail operations as G7 Screen Shot 2014-01-30 at 00.47.49powers prepare to launch new sanctions   

Extract from an article by  published1:28PM BST 27 Apr 2014 by The Telegraph

Britain’s top energy companies face an extremely delicate situation as the world’s G7 powers prepare to launch the next wave of sanctions against Russia, and may be forced to curtail operations or freeze certain commercial ties with the country. The US, Japan, Germany, Britain, France, Italy and Canada have agreed to “intensify targeted sanctions to increase the costs of Russia’s actions” – possibly as soon as Monday… The G7 is for now holding back Iranian-style “stage 3” sanctions against the whole Russian banking system, mining industry, or the oil and gas nexus. This nuclear option… Both BP and Shell said they remain committed to their long-term investments in Russia but are monitoring the situation closely.   read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Posing with Russia’s president, Vladimir V. Putin

Shell's Ben van Beurden bows to Putin on Good Friday, 18 April 2014

Shell’s Ben van Beurden bows to Putin on Good Friday, 18 April 2014

Extract from a New York Times article by 

European Firms Seek to Minimize Russia Sanctions

BERLIN — With the showdown over Ukraine escalating and President Obama warning Moscow of a tough new round of sanctions, Russia and its allies in the European private sector are conducting a separate campaign to ensure that they can maintain their deep and longstanding economic ties even if the Kremlin orders further military action. No European industry has been as open in its support of Russia as the energy industry. Executives have publicly voiced skepticism about the effectiveness of sanctions, lobbied behind the scenes to head them off and traveled to Russia, on at least one occasion to pose with Russia’s president, Vladimir V. Putin. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Sanctions not enough to deter hydrocarbon-hungry firms

Shell's Ben van Beurden bows to Putin on Good Friday, 18 April 2014

Shell’s Ben van Beurden bows to Putin on Good Friday, 18 April 2014

Extract from a BusinessDay article published 26 April 2014

Shell also expressed commitment to its expansion projects in Russia. Ben van Beurden, chief executive of Royal Dutch Shell told Russian President, Vladimir Putin at a meeting recently. Shell plans to expand Russia’s only liquefied natural gas (LNG) plant with Russian partner Gazprom. Van Beurden said that Shell “are very keen to grow our position in the Russian Federation and we look forward with anticipation and confidence on a very long-term future here in Russia.” He confirmed that Shell had agreed with Gazprom to expand the Sakhalin-2 LNG plant which produces 10 million tonnes of LNG per year. The expansion plan is in line with Putin’s demand to boost production of LNG and double Russia’s global market share to around 10 percent by 2020. Putin said in his response said; “We, of course, will pledge all the necessary administrative guidance and support.” read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Leveraging Big Oil to resolve the Ukrainian crisis

Shell's Ben van Beurden bows to Putin on Good Friday, 18 April 2014

Shell’s Ben van Beurden bows to Putin on Good Friday, 18 April 2014

Extract from an article published 25 April 2014 by allvoices.com

Bloomberg’s Business Week reports that even while Western governments and Russia squared off over Ukraine, relations between the major energy companies — such as ExxonMobil, Royal Dutch Shell and BP — and Russia grew even cozier as they pursued the half a trillion dollar oil and gas joint venture deal in the Arctic and Siberia concluded in 2011. The implications are clear: Any comprehensive sanctions against Russia will have adverse effects on major Western energy companies. The strenuous efforts by Big Oil CEOs to reassure Putin that Obama’s sanction threats are empty threats have been noted by close watchers of the energy sector. While Obama and US Ambassador to the UN Susan Rice were threatening sanctions on Russia’s “very significant sectors,” Royal Dutch Shell’s CEO Ben Van Beurden met with Putin at his residence in the outskirts of Moscow and assured him, confidently, that his company’s business interests in Russia would not be sacrificed to international politics. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.