FINANCIAL TIMES

Shell slims down to shape up for the energy transition

Anjli Raval, Senior Energy Correspondent

…the Anglo-Dutch group has been forced into previously unthinkable moves, change and scrutiny of its capital allocation plans mount, is scrambling to come up with an updated plan. In the meantime, it is cutting costs and streamlining.

On Wednesday it offered a glimpse into Project Reshape, its organisational restructuring in which up to 9,000 jobs will be cut from its 83,000-strong workforce to save $2.5bn a year.

All Shell is thinking about is how do we maintain our position as a market leader in every sense — from climate action to staying competitive in the oil and gas space,”one company insider said. “The fear is that we go from being a leader to a laggard. read more

Australia trims 2020-21 LNG export forecasts on COVID-19, production issues

• AuthorNathan Richardson 
• EditorAastha Agnihotri 
• CommodityNatural Gas

Sydney — Australia has cut forecasts for the country’s LNG exports for 2020-2021 (July-June) by some 6% to 75.6 million mt, citing the expected impacts of both the COVID-19 pandemic and domestic technical issues.

If realized, the forecast for the current fiscal would see volumes fall by 3.7 million mt year on year. They are expected to recover in 2021-2022 to 80.1 million mt, the Department of Industry, Science, Energy and Resources said Sept. 28 in a report. read more

Shell Plans to Divest Oil Drilling Rights off North Alaska Coast

Shell Oil is planning to divest — not drill — an oil prospect in shallow state waters off Alaska’s northern coast, despite a recent filing with regulators, spokesman Curtis Smith said.

Shell Offshore Inc. had asked state regulators to combine 18 shallow-water leases and create the West Harrison Bay Unit “in order to pursue a commercial agreement with an alternative operator,” Smith said by email

“Shell has no intention to operate these leases, which were originally purchased in 2012 and are due to expire in 2022” read more

U.S. and European Oil Giants Go Different Ways on Climate Change

While BP and other European companies invest billions in renewable energy, Exxon and Chevron are committed to fossil fuels and betting on moonshots.

HOUSTON — As oil prices plunge and concerns about climate change grow, BP, Royal Dutch Shell and other European energy companies are selling off oil fields, planning a sharp reduction in emissions and investing billions in renewable energy.

The American oil giants Chevron and Exxon Mobil are going in a far different direction. They are doubling down on oil and natural gas and investing what amounts to pocket change in innovative climate-oriented efforts like small nuclear power plants and devices that suck carbon out of the air. read more

Shell files offshore drilling plans for Alaska’s North Slope

17 Sept 2020

ANCHORAGE, Alaska (AP) — Shell Offshore Inc. has submitted plans to plans to drill for oil in the waters along the National Petroleum Reserve-Alaska in the coming years.

The Dutch oil industry giant applied to form the West Harrison Bay Unit to explore in state waters off the North Slope region, The Alaska Journal of Commerce reported Wednesday.

Documents submitted to the state Division of Oil and Gas said Shell has attempted to find a partner to work on the West Harrison Bay leases for at least a year. read more

Nigeria Government Lawyer Accuses Jonathan, Adoke And Diezani Of Receiving Bribes To Facilitate Malabu Deal

He informed the court that Nigeria wanted to take action because of this fact, which it considers to be of very serious prejudice to the nation.

BY SAHARA REPORTERS, NEW YORK: SEP 10, 2020

The lawyer representing Nigeria at the ongoing trial of the Malabu OPL245 scandal, Lucio Lucia, has indicted ex-President Goodluck Jonathan, at the hearing of the case in Milan court on Wednesday. read more

COMMODITIES

Kosmos Energy to sell some exploration assets to Shell

(Reuters) – Oil and gas producer Kosmos Energy said on Wednesday it agreed to sell certain exploration assets in Africa and South America to a unit of Royal Dutch Shell for up to $200 million.

Shell will acquire the company’s participating interest in blocks offshore São Tomé and Príncipe, Suriname, Namibia and South Africa, Kosmos said in a statement.

Kosmos said it plans to use up to one-third of the initial sale proceeds of $100 million to test two high-quality infrastructure-led exploration prospects in the Gulf of Mexico. read more

Shell begins restart of Prelude FLNG after seven-month suspension

Malabu Oil Deal: Canadian judge dismisses suit challenging Nigeria’s grounding of Etete’s jet

September 4, 2020: Oladeinde Olawoyin

A Canadian judge on Thursday dismissed an application seeking leave to appeal the judgement that confirmed the grounding of a luxury private jet purchased by a former Nigerian oil minister, Dan Etete, with some of the alleged proceeds of the controversial $1.3 billion Malabu OPL245 oil deal.

The suit was filed before the court by Tibit Limited, an anonymously owned company incorporated in the British Virgin Islands (BVI), claiming ownership of the jet. read more

A Glut of Refineries Is the Oil Industry’s Next Problem

New capacity in the developing world is making European plants that turn oil into gasoline and other products obsolete

By Rochelle Toplensky: Sept. 3, 2020 5:03 am ET

This year’s oil glut is already receding. It is a shame that can’t be said of the global glut of oil refineries, which is only getting worse.

Europe in particular has long had too many oil refineries, but the pandemic-induced fall in energy demand has ramped up pressure to resolve the problem. For the region’s big oil producers—already reeling after a flood of excess oil pushed some prices below zero in April—a few aging assets are likely in line for a makeover. Others could be destined for the scrap heap. read more

Kazakh gas station chain scraps Shell/Gulf franchise plans -sources

SEPTEMBER 1, 2020

MOSCOW/NUR-SULTAN, Sept 1 (Reuters) – PetroRetail, operator of Kazakhstan’s biggest gas station network, has scrapped plans to switch to either Shell or a Gulf brand and will instead revive its own Qazaq Oil brand, sources familiar with the plans told Reuters.

PetroRetail in a statement to Reuters confirmed plans to use its own brand but declined to disclose details.

The company, which purchased hundreds of gas stations from state energy firm KazMunayGaz in 2018, has moved to cut costs, including spending on brands, in the wake of a sharp drop in fuel demand due to the pandemic, market players say. read more

Shell to raise investment plan for Mexican ultra-deepwater field to $345M

Mexico’s National Hydrocarbons Commission approves Royal Dutch Shell’s (RDS.A, RDS.B) request to carry out all permitted activities in its exploration plan for the ultra-deepwater Xochicalco oilfield in the Gulf of Mexico.

Shell will drill a well at depths of five miles trying to reach a Wilcox formation, with prospective reserves of as much as 562M boe, boosting its investment in the play to $345.8M from $104M in the original exploration plan, which was first approved in June 2019. read more

Libra Consortium takes final investment decision on Mero-3 FPSO in Brazil’s pre-salt

RIO DE JANEIRO, Aug. 25, 2020 /PRNewswire/ — Shell announced today a final investment decision taken by the Libra Consortium, operated by Petrobras, to contract the Mero-3 floating production, storage and offloading (FPSO) vessel to be deployed at the Mero field within the offshore Santos Basin in Brazil.

This is the third production system to be deployed in the Mero field, with final investment decisions to contract the Mero-1 and Mero-2 FPSOs already taken.  Each unit has a daily operational capacity rate of 180,000 barrels of oil equivalent, with production coming online over the next four years. The Pioneiro de Libra FPSO (50,000 barrels of oil equivalent/day) has been producing at Mero since 2017 and is a key source of information for the consortium to aid further development and productivity of the field, reservoir and wells. read more

Shell to begin seismic work on North Sea gas discoveries next year

by Allister Thomas: 25/08/2020, 11:20 am

It comes as the energy giant took over operatorship of the licences from Egdon Resources, farming in with 70% interest in both.

Under the deal, Shell will pay 85% of the costs for acquiring and processing the 3D seismic survey, which needs to completed by May 31 2021 under the terms of the licenses.

Shell will meet these costs up to $5million, at which point Egdon will be responsible for 30% of survey. read more

INSIGHT- In the run-up to U.S. election, drilling lobby promotes natural gas as “clean”

By Valerie Volcovici, Andrew R.C. Marshall and Matthew Green: AUGUST 18, 2020

WASHINGTON/LONDON, Aug 18 (Reuters) – America’s biggest oil and gas lobby group is ramping up its advertising spending ahead of the November election to persuade voters that natural gas is a climate-friendly fuel, according to ad buying data.

The campaign by the American Petroleum Institute (API), targeted at younger voters and some tight congressional races, is part of a global battle by the drilling industry to assuage growing fears over the role of natural gas in driving climate change. read more

Unit failure at Shell’s Pernis oil refinery resolved

AUGUST 18, 2020

LONDON (Reuters) – A unit failure at Royal Dutch Shell’s 404,000 barrel per day Pernis oil refinery in Rotterdam on Aug. 17 has been resolved, the company said on Twitter on Tuesday

The oil major said on Monday that the unit failure had led to flaring at the refinery, without identifying the unit in question.

Reporting by Ahmad Ghaddar; Editing by David Goodman

SOURCE

FACTBOX-Oil refiners shut plants as demand losses seen continuing

AUGUST 17, 2020 / 6:01 AM

Aug 17 (Reuters) – Oil refiners are permanently closing processing plants in Asia and North America and facilities in Europe could be next as uncertain prospects for a recovery in fuel demand after the coronavirus pandemic triggered losses.

The pandemic initially cut global fuel demand 30% and refiners temporarily idled plants. But consumption has not returned to pre-pandemic levels and lower travel may be here to stay, leading to tough decisions for permanent shutdowns. Here are some of the plants involved: read more

LNG revenues smashed on price slump

Angela Macdonald-Smith, Senior resources writer:12 Aug 2020

Australia’s revenues from LNG exports slumped a massive 52 per cent in July compared with a year earlier as export prices followed crude oil prices into the basement, cementing prospects for a big dip in export earnings from the commodity this financial year.

LNG export revenues for the country were likely about $1.98 billion last month, sinking from north of $4 billion a year earlier, according to an analysis released on Wednesday by consultancy EnergyQuest. read more

Big Oil’s Most Profitable Business Is No Longer Oil

By Haley Zaremba – Aug 06, 2020, 4:00 PM CDT

It’s been a rough year for oil, to say that least. And the worst isn’t over yet. Even though oil demand, and therefore oil prices, have been slowly recovering, that upward trajectory is now running out of steam and we’re headed toward a slump amidst what will almost certainly be a yearslong recession in the wake of the economic fallout from the devastating spread of the novel coronavirus. read more

Shell to change-up FIFO roster at Australian operations

Paul Hunt: Senior Journalist: Oil & Gas, Policy. 07 August 2020

Currently FIFO staff work three weeks on, four weeks off, then three weeks on and five weeks off but under the new proposed agreement, employees would simply do a four week on, four week off roster.

In a power-point presentation leaked to Energy News this week, Shell Australia said a new roster was needed due to interstate travel restrictions, and the combined impact of a 14-day quarantine requirement for FIFO staff. read more

Shell gets green light for huge Crux backfill project

SHELL Australia has been granted approval by the national oil and gas regulator for development of its massive Crux field offshore Western Australia, though the company earlier flagged a delay to the development thanks to pandemic and oil price concerns.

Paul Hunt: Senior Journalist: Oil & Gas, Policy. 05 August 2020

The 2 trillion cubic feet Crux gas field project will be the source of backfill for the Prelude floating LNG vessel, which has not sent a cargo since February.

The development will consist of five subsea production wells tapping into the northern Browse Basin, which will then be tied back to an unmanned platform. read more

Shell Signs Charter Contracts for Six Newbuild LNG Carriers

BY THE MARITIME EXECUTIVE 08-03-2020 04:29:49

Shell Tankers (Singapore) Private Limited (“Shell”) has agreed long-term charter contracts for six newbuild liquefied natural gas (LNG) carriers.

Shell has signed separate agreements for two LNG ships each with affiliates of Knutsen LNG, Korea Line Corporation, and ICBC Financial Leasing and institutional investors advised by J.P. Morgan Asset Management.

The state-of-the-art 174,000 cbm LNG ships will be built by Hyundai Heavy Industries and Hyundai Samho Heavy Industries. They will all be equipped with efficient dual-fuel X-DF engines, boil-off management plants, air lubrication systems and shaft generators for auxiliary power. The design and addition of energy efficiency technologies will give these ships the best emissions performance in their class. read more

How Nigeria’s AGF Malami Indicted Predecessor Adoke In OPL 245 Scam While Testifying In London

Malami, while testifying, said Adoke accompanied P&ID in making Nigeria lose the case. He also accused Adoke to have received a bribe of more than $800,000.

BY SAHARA REPORTERS, NEW YORK JUL 30, 2020

Nigeria’s Attorney-General and Minister of Justice, Abubakar Malami, has made egregious corruption claims against his predecessor, Mohammed Bello Adoke, while testifying for Nigeria in the ongoing P&ID case. read more

Shell Swings to Historic Loss as Pandemic Devastates Oil Demand

Anglo-Dutch oil major warns that uncertain demand outlook could curtail its third-quarter production

Royal Dutch Shell PLC swung to a heavy loss in the second quarter and warned that the outlook for oil-and-gas demand continued to be uncertain, illustrating the scale of damage Covid-19 is wreaking on the industry.

The pandemic has decimated demand for oil, hitting prices hard. When around two-thirds of the world’s population was in lockdown in early April, global oil demand fell by a third, according to the International Energy Agency. read more

Shell avoids loss with strong trading, wipes $17 billion off assets

LONDON (Reuters) – Royal Dutch Shell (RDSa.L) avoided its first quarterly loss in recent history, helped by a booming trading business, but announced nearly $17 billion in impairment charges reflecting a pessimistic outlook for oil and gas prices.

Shell had warned last month it was set to slash the value of its oil and gas assets by up to $22 billion as the coronavirus crisis hollowed out energy demand.

“Shell has delivered resilient cash flow in a remarkably challenging environment,” CEO Ben van Beurden said in a statement on Thursday. read more

Shell invests $300,000 in the Arts Council of Greater Baton Rouge’s new arts center

STAFF REPORT: JUL 27, 2020 – 4:03 PM

Shell has invested $300,000 in the Arts Council of Greater Baton Rouge’s new Cary Saurage Community Arts Center at 233 St. Ferdinand St.

These funds will support the Shell Gallery, an art exhibition and meeting space open to individuals, schools and organizations throughout the Capital Region and beyond.

“Shell understands the vital role that arts and culture play in creating an appealing place to live and work,” said Renee Chatelain, president and CEO of the Arts Council of Greater Baton Rouge. “They are industry leaders in investing in the quality of life for the Louisiana community, and we are excited about the many positive ways that this arts/business partnership will impact the community.” read more

International transparency groups raise 25 questions for AGF Malami on OPL 245 contracts

July 26, 2020: Premium Times

Four civil society groups who have been monitoring the OPL 245 scandal have raised 25 questions for Nigeria’s justice minister, Abubakar Malami, on the handling of the assets recovered in relation to the oil block.

The groups include Corner House, Global Witness and Re:Common – all European transparency organisations – and the Human and Environmental Development Agenda (HEDA), a Nigerian anti-corruption group. read more

Energy majors ‘spend 90%’ on fossil fuels despite climate pledges

23/07/2020: Paris (AFP)

Energy giants Shell and Total continue to invest 90 percent of their capital on planet-warming fossil fuels despite promises to slash their greenhouse gas emissions, according to an industry analysis seen exclusively by AFP.

With combined emissions equivalent to that of Germany — the world’s fourth largest economy — both companies are likely to fall “well short” of their own sustainable investment targets, the Institute for Energy Economics and Financial Analysis (IEEFA) said. read more

Shell’s share price is down 46% in 2020. Is now the time to buy?

Edward Sheldon, CFA | Tuesday, 21st July, 2020

The last time I covered Shell (LSE: RDSB) shares was on 10 March. At the time, Shell’s share price had just crashed spectacularly due to plunging oil prices and the oil price war that had erupted between Saudi Arabia and Russia. My view back then was that Shell’s share price weakness was a buying opportunity.

Fast forward to today, and Shell’s share price is actually lower than it was when I covered the stock in March. Did I get it wrong? Let’s take another look at the investment case for Shell. read more

Shell Energy has launched a new Solar Storage tariff as part of its partnership with German battery storage system manufacturer sonnen.

Customers with solar panels installed on their homes will be able to earn solar credits in the summer, when they are generating excess power that can be exported to the grid. These credits can then be used come winter to save money on bills.

In the UK, a home will typically use about 30% of the electricity produced by their solar panels, but by combining it with a sonnenBatterie this can grow to 75% of their annual energy produced. Adding Shell’s new tariff increases this even further the company stated. read more

Shell promotes Edward Hymes to President of Jiffy Lube

TIRE BUSINESS STAFF: 15 JULY 2020

Mr. Hymes, who’s been with Shell since 2001, will be responsible for the management and growth of the Jiffy Lube franchise, including oversight of more than 2,000 independently owned Jiffy Lube service centers in the U.S. and Canada.

His appointment was effective in January. He succeeds Patrick Southwick, who stays with Shell Oil as vice president, Downstream Acquisitions and Divestments.

“Edward’s extensive retail experience coupled with his real estate and business investment expertise position him well to lead the Jiffy Lube business,” said Machteld de Haan, president, Shell Lubricants Americas. read more

Possible chemical spill in Talfourd Creek

By Kirk Dickinson July 14, 2020 9:10pm

Shell Canada is reporting a possible chemical spill at its facility in Corunna.

A CVECO Code 10 was issued by Shell at around 9 p.m. following the spill of an unknown product into Talfourd Creek.

Due to the creek’s connection to the St. Clair River, there is a potential that the chemical could reach the main waterway, Shell said.

BlackburnNews.com will provide more information as it becomes available.

SOURCE read more

Magu: International groups write Buhari, say Nigeria’s anti-corruption fight may suffer setback

Prominent international groups involved in anti-corruption efforts globally have written to President Muhammadu Buhari on what they consider the unfortunate treatment of Ibrahim Magu.

PREMIUM TIMES reported the arrest of Mr Magu, acting chairman of Nigeria’s anti-graft agency, EFCC, on Monday.

He has been detained since then as he continues to appear before a panel probing allegations of corruption and insubordination against him. The allegations were made by the Attorney-General of the Federation, Abubakar Malami. read more

Shell eyes $2.2 billion divestment from giant Indonesia gas project

by Damon Evans:09/07/2020, 3:40 pm

Similar rumours about Shell’s exit emerged in early 2019, but Inpex, the Japanese operator of the Masela Block, subsequently won approval for a new development plan, including additional fiscal incentives to enhance the project’s economics, Andrew Harwood, Asia Pacific research director at Wood Mackenzie, told Energy Voice.

However, “there is more substance behind the news this time, with Shell’s recent decision to write-down the value of its upstream portfolio perhaps signaling a wider portfolio review,” added Harwood. read more

Exclusive: Raízen, Wilmar set to end sugar trading venture RAW – sources

Reporting by Marcelo Teixeira and Maytaal Angel; editing by Jonathan Oatis: 02 JULY 2020

NEW YORK/LONDON (Reuters) – Brazil’s Raízen, the world’s largest sugar-making company, and Asian commodities trader Wilmar International (WLIL.SI) are set to end their partnership in the global sugar trading joint venture RAW, four sources familiar with the process said.

The joint venture, formed in 2016, was the second-largest trader of Brazilian sugar, with volumes around 4 million tonnes annually, and its dissolution will make the market more fragmented. read more

Coronavirus Takes a Toll on Shell Imposing $15-$22B Write-Offs

What Does the Record Write-Down Imply?

The energy industry, grappling with the twin demerits of oversupply and low pricing, expects the weak macro environment to persist. Companies like Shell and BP are carrying assets on their balance sheets that were purchased/developed at a time when commodity prices were materially higher than the current figures. As the market deteriorates, the operators are ultimately forced to take write-offs. read more

OPL 245:EFCC arraigns Malabu oil, 6 others over alleged $1bn fraud

1 July 2020

By Ikechukwu Nnochiri ABUJA — The Economic and Financial Crimes Commission, EFCC, on Wednesday, arraigned Malabu Oil & Gas Limited, six other companies and an oil tycoon, Aliyu Abubakar before the Federal High Court on a 48-count fraud charge.

The Defendants were docked over their involvement in alleged fraudulent transfer of controversial OPL 245, considered as one of the richest oil blocks in Africa.

Other defendants in the charge marked FHC/ABJ/CR/268/2016, are A-Group Construction Company Limited, Rocky Top Resources Limited, Mega-Tech Engineering Limited, Novel Properties and Development Company Limited, and Carlin International Nigeria Limited. read more

EFCC drops Adoke from key OPL 245 case, files fresh charges against Malabu

The Economic and Financial Crimes Commission (EFCC) has arraigned Malabu Oil and Gas Limited on fresh charges of money laundering in the OPL 245 deal of 2011.

July 02, 2020

Malabu, alongside Aliyu Abubakar, a businessman, and six other companies were arraigned on a 48-count charge before Iyang Ekwo, judge of a federal high court in Abuja.

The companies listed in the charge are: A-Group Construction Company Limited, Rocky Top Resources Limited, Mega Tech Engineering Limited, Novel Properties and Development Company Limited, and Carlin International Nigeria Limited. read more

DNV GL approves Shell’s CO2 technology use at Fortum’s plant

Fortum plans to build a full scale CO2 capture facility at the plant to reduce greenhouse gas emissions by 400,000 tonnes per year, the equivalent of emissions from 200,000 cars.

The pilot project showed that Shell’s CONSOLV CO2 technology could capture more than 90% of CO2 from the flue gas, DNV GL, which certifies that technology is as described and meets existing standards, said in a statement.

“The third-party technology qualification by DNV GL gave us confidence that the project risk related to implementing the Shell technology was low,” said Jannicke Gerner Bjerkas, the head of the project at the plant. read more

Shell secures biogas supply as part low-carbon shift

JUNE 30, 2020 / 8:35 PM

COPENHAGEN (Reuters) – Royal Dutch Shell said on Tuesday it has agreed to buy renewable gas, known as biomethane, from Denmark’s Nature Energy, in what the smaller company termed the largest deal of its kind.

The gas will be supplied to Europe’s pipeline network from July 1. The size and financial details of the contract were not disclosed.

In April, Shell laid out the oil and gas sector’s most extensive strategy yet to reduce greenhouse gas emissions to net zero by 2050. read more

BBC NEWS: 30 JUNE 2020

Shell, one of the world’s largest oil companies, has warned that the low price of oil could reduce the value of its assets by up to $22bn (£17.9bn).

It said it expects oil to change hands at $60 per barrel in the long term and to be priced at $35 this year and $40 next year.

Shell follows rival BP in telling investors that oil hardware is not worth as much as it used to be.

BP told investors this month its assets could be worth $17.5bn less.

Countries across the globe have ordered people to stay indoors and not travel as a result of the coronavirus pandemic, which has caused a slump in demand for oil. read more

By Nick Cunningham – Jun 30, 2020, 5:00 PM CDT

Royal Dutch Shell said that it could cut the value of its oil and gas assets by as much as $22 billion, as it takes a dim view of the state of the oil market. The move adds more evidence to the notion that a huge slice of oil reserves will wind up as stranded assets.  Shell cut its Brent oil prices forecast from $60 per barrel to $35 for this year, and lowered its 2021 and 2022 forecasts to $40 and $50 per barrel, respectively, down from $60 previously. The lower outlook reflects the expected damage to the oil market due to the coronavirus and the negative impacts on the global economy, Shell said. read more

Big Oil’s Long Bet on Hydrogen Offers a Climate Lifeline

(Bloomberg) — On particularly cold winter days, the vast majority of the U.K.’s energy comes from burning natural gas. That arrangement will have to change radically–and soon–if the country is to hit its legally mandated target of net-zero emissions by 2050. As other countries adopt similar targets to align with the Paris climate agreement, they too will have to find an alternative to natural gas. That leaves fossil fuel companies with a ticking clock.

Hydrogen burns cleanly, leaving only water behind. That’s made it an attractive alternative fuel source–not just for governments looking to satisfy climate mandates, but also for oil companies trying to ensure their continued relevance. Oil-and-gas majors such as Shell, Equinor, and BP have spent tens of millions of dollars on pilot projects. Now in the face of record-low oil prices, frozen international travel, and growing shareholder unease over greenhouse gas emissions, investing in hydrogen has taken on a new urgency. read more

The fossil fuel company Shell must be held accountable for significant and systematic pollution caused by oil extraction in the Niger delta, lawyers will argue in the supreme court.

Nigerians from the Ogale and Bille communities say they have suffered decades of pollution, including the contamination of their water wells with potentially cancer-causing chemicals, as well as the devastation of mangrove vegetation, all of which was documented by the UN in a groundbreaking report in 2011.

The United Nations environment programme (UNEP) said in its report it could take 30 years to clean up the pollution caused by oil extraction and recommended an initial fund of $1bn (£800m) for the first five years to be paid by the oil companies that operate in Ogoniland – including the largest company, Shell. read more

Okpabi and others (Appellants) v Royal Dutch Shell Plc and another (Respondents)

Case ID: UKSC 2018/0068

Issue(s)

Whether and in what circumstances the UK-domiciled parent company of a multi-national group of companies may owe a common law duty of care to individuals who allegedly suffer serious harm as a result of alleged systemic health, safety and environmental failings of one of its overseas subsidiaries as the operator of a joint venture operation.

Facts

The Appellants (some 42,500 people) are citizens of Nigeria and inhabitants of the areas allegedly affected by oil leaks from pipelines and associated infrastructure, that SPDC operates on behalf of an unincorporated joint venture in which numerous participating interests are held, in and around the Niger Delta. The leaks are said to have impacted their lives, health and local environment. They contend that the Respondents are responsible. Royal Dutch Shell Plc (‘RDS’) is the parent company of the Shell group of companies, incorporated in the UK. The Shell Petroleum Company of Nigeria Limited (‘SPDC’, the other Respondent) is an exploration and production company incorporated in Nigeria and is a subsidiary of RDS. The claims against RDS and SPDC are based on the tort of negligence under the common law of Nigeria which, for present purposes, is to be regarded as the same as the law of England and Wales. The claim against RDS is brought on the basis that RDS owed the claimants a duty of care either because it exercised significant control over material aspects of SPDC’s operations and/or assumed responsibility for SPDC’s operations. RDS applied under CPR Part 11(1) for orders declaring that the court had no jurisdiction to try the claims against it, or should not exercise such jurisdiction as it had. At first instance Fraser J held that there was no arguable case that RDS owed the Appellants a duty of care. The Appellants appealed to the CA against the judgment and Order of Fraser J. The CA upheld the decision of Fraser J. The Supreme Court has since clarified the law in this area, including by reference to the CA’s decision in this case, in Vedanta Resources PLC and another (Appellants) v Lungowe and others (Respondents) [2019] UKSC 20. read more

Wells Fargo and Shell join in solar deal

By Steven Mufson: June 23, 2020 at 2:00 p.m. GMT+1

Wells Fargo will buy 150 megawatts of solar power from Shell Energy, a move that demonstrates widening corporate interest in renewable energy even among some of the strongest supporters of fossil fuels.

The deal is modest: Wells Fargo says the 150 megawatts, purchased from three locations in Virginia and one in California, would meet about 8 percent of its global energy needs.

But it carries symbolic value. Wells Fargo, the second-biggest lender to fossil fuel companies over the past four years, is buying carbon-free electricity from Shell, a company that’s been in the oil business since the 1880s. The deal also shows the appeal of solar projects even in the midst of the punishing economic downturn brought on by the novel coronavirus pandemic. read more

Electric Car Charging Stations Are Finally About to Take Off

(Bloomberg) — The electric vehicle sector has been stuck for years with a chicken-and-egg problem. Until there were extensive networks of public charging stations, a critical mass of people would never feel comfortable driving EVs–but until a critical mass of people were driving EVs, there was no sense in investing in extensive networks of public charging stations.

It may be the coronavirus pandemic that finally breaks the stalemate. BloombergNEF’s latest Long-Term Electric Vehicle Outlook predicts that EVs sales will experience a smaller dip than traditional auto sales as a result of the broader economic squeeze, and that they’ll bounce back more quickly once the market recovers. EVs and the infrastructure needed to charge them have also been a part of many of the stimulus packages announced by European and Asian governments. Just in the past few weeks, Germany included chargers in its €2.5 billion proposed economic package, and the European Union announced that it’s aiming to have 1 million public chargers by 2025, from fewer than 200,000 today. read more

Shell and Total join UK floating offshore wind syndicate

By David McPhee: 22/06/2020

North Sea oil giants Shell and Total have joined a UK floating offshore wind consortium created to drive forward the technology.

The oil firms will work alongside offshore wind developers EDF Renewables, EDP Renewables, Equinor, ESB, Mainstream Renewable Power, ScottishPower Renewables and SSE Renewables as part of Offshore Renewable Energy (ORE) Catapult’s national Floating Offshore Wind Centre of Excellence (FOWCoE). read more

MSP ‘deeply disappointed’ by loss of Shell decommissioning job to Norway

By Mark Lammey: 19/06/2020

A Scottish politician said yesterday he was “deeply disappointed” that an oil production vessel which has sat in Dundee for a year will be dismantled in Norway.

North-east Labour MSP Lewis Macdonald claimed the scrapping of Shell’s Curlew vessel could have been done at a number of Scottish locations “had they been given the opportunity to tender”.

Mr Macdonald called for “action” to help Scottish yards win more North Sea oil and gas decommissioning work. read more