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September, 2004:

We’ll be running to stand still until 2009, says Shell

Daily Telegraph: We’ll be running to stand still until 2009, says Shell

“…Mr Van der Veer was dismissive of suggestions it might merge with French giant Total. He said: “The fact that [that story] can get legs shows that our reputation is not where we want it to be.”: “Shell was embarrassed about selling a field in North India to oil minnow Cairn Energy for a few million dollars which later yielded hundreds of millions of barrels of oil, he said.”

By Christopher Hope, Business Correspondent (Filed: 23/09/2004)

Shell pledged yesterday to spend more cash on finding oil and gas over the next three years as the world’s third largest oil company admitted that its production was likely to be flat between now and 2009.

Shell also said it would sell off $10 billion to $12 billion of non-core assets as part of an “urgent need” to restore its position after “losing” 4.4 billion barrels of proven oil and gas earlier this year. read more

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A Strategy for Shell?

The New York Times: MARKET PLACE: A Strategy for Shell?

“…it has paid $150 million in fines after investigations by United States and British regulators. It still faces about a dozen lawsuits and may suffer more negative publicity as one of the executives, Sir Philip Watts, the former chairman, mounts his defense.”

By HEATHER TIMMONS

LONDON

September 23, 2004

THE Royal Dutch/Shell Group said yesterday that it would sell as much as $12 billion in assets, spend $45 billion on new projects and consider some acquisitions as it tries to bolster oil and gas production.

In Shell’s first long-term strategy presentation since it unnerved the markets in January by reducing estimates of oil and gas reserves 20 percent, the company’s chairman, Jeroen van der Veer, promised more profitable businesses and said Shell would “raise the performance bar.” read more

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Shell Pegs Budget For Exploration To Higher

THE WALL STREET JOURNAL: Shell Pegs Budget For Exploration To Higher

“Mr. van der Veer declined to discuss details of an internal review of the company’s corporate structure. Shell is studying whether to change its dual-board structure, which critics have blamed for obscuring accountability in Shell’s reserves scandal. The company expects to unveil options in November.”

By CHIP CUMMINS

Staff Reporter of THE WALL STREET JOURNAL

September 23, 2004; Page A3

LONDON — Moving to persuade investors it can turn around its exploration-and-production unit, Royal Dutch/Shell Group said it is counting on higher oil prices to allow it to spend more on finding oil and natural gas. But Shell didn’t sharply boost the budget, raising questions about its ability to quickly add petroleum reserves.

Shell executives, betting that oil prices will remain strong, said they plan about $45 billion, or roughly €37 billion, in capital expenditures over the next three years. The $15 billion in annual spending is up from $14.3 billion last year. About $11.5 billion a year of that is earmarked for Shell’s exploration-and-production businesses, or so-called upstream activities, up from $10.7 billion last year. read more

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Shell unveils $15bn recovery plan

The Guardian: Shell unveils $15bn recovery plan

“The reserves scandal forced Shell’s chairman, Philip Watts, to resign, along with Walter van de Vijver, its oil and gas chief and its chief financial officer, Judy Boynton. The company was fined by the financial services authority in the UK and the securities and exchange commission (SEC) in the US.”

Mark Tran

Posted 23 Sept 2004

The Anglo-Dutch oil giant Shell today sought to draw a line under its reserves scandal by announcing plans to spend $15bn (£8.4bn) a year to replenish reserves and develop production in its oil and gas business.

The world’s third-largest oil company also said it would sell $10-$12bn of non-core businesses over three years and would look at “focused acquisitions” to create value.

“We are focused on improving our competitive position, strong cash generation and total shareholder returns,” Jeroen van der Veer, the Shell chairman, said in the group’s strategy statement. “Replacing our reserves is a priority to support future growth.” read more

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Royal Dutch/Shell is trying to regain its reputation

Financial Times: Lex: “Royal Dutch/Shell is trying to regain its reputation.”

“Thanks to high oil prices Shell’s share price has more than regained the ground lost in this year’s reserves scandal. But, while a rising tide lifts all boats, there is little in Shell’s strategy to significantly narrow the gap with rival BP”

Posted 23 Sept 04

At least Shell is facing up to reality. After years of sub-standard performance on reserve replacement, capital expenditure is set to rise. A focus on larger prospects and a bias towards gas, where returns are high and Shell has a leadership position, appear sensible. It is, however, a case of “jam tomorrow”. Emphasising how thickly the jam might be spread cannot hide the fact that production is expected to be broadly flat until 2009. No production growth and a target of 100 per cent reserve replacement until 2008 will not narrow the gap with its peers. read more

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Shell Plan Disappoints Investors

Financial Times: Shell Plan Disappoints Investors

“Scandal-hit oil giant Royal Dutch/Shell will invest $45 billion over three years to boost reserves and production but its shares fell on disappointment it did not extend a stock buyback program.”: “Shell’s reserves cut caused the ousting of its previous top directors, led to $150 million in regulatory fines and cost the group its “AAA” top-grade credit rating.”: “Shell is such a long turnaround story that BP looks a less risky bet,’” said Cavendish Asset Management fund manager Paul Mumford.”

By REUTERS

Posted 23 Sept 04

LONDON (Reuters) – Scandal-hit oil giant Royal Dutch/Shell will invest $45 billion over three years to boost reserves and production but its shares fell on disappointment it did not extend a stock buyback program.

Shell, the world’s third-largest oil company, had shocked investors in January by slashing its proven oil and gas reserves by 20 percent. Subsequent smaller reserves cuts further dented investor confidence.

In a strategy presentation on Wednesday, Shell said it would spend a total of $15 billion a year in 2004/06, mostly on major gas and oil projects. It also plans to sell assets worth $10-$12 billion over the period to strengthen its finances. read more

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Shell to spend 4 bln usd to boost Canada’s Athabasca bitumen output

AFX UK (Focus): Shell to spend 4 bln usd to boost Canada’s Athabasca bitumen output

Posted 22 Sept 2004

LONDON (AFX) – Royal Dutch/Shell Group said it will spend 4 bln usd to raise bitumen production at its Athabasca oil sands project in Canada to 270,000-290,000 barrels per day by 2010.

It will ramp up production to 155,000 barrels initially, then over the next three years, a series of debottlenecking projects at the Muskeg river mine and Scotford facility will bring output to 180,000-200,000 barrels.

Between 2006 and 2010, planned expansions at Muskeg and Scotford are expected to further increase bitumen throughputs by 90,000 barrels per day, taking total production at Athabasca to 270,000-290,000 barrels per day. read more

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City watchdog flexes its muscles

Daily Mail: City watchdog flexes its muscles

“McCarthy heralded Shell’s record £17m fine, saying it was four times greater than any previous penalty. He said he wanted to change the behaviour of firms and individuals, suggesting that fines could continue to grow.”

Posted 22 September 2004,

THE boss of City regulator the Financial Services Authority* declared that he intends to make an example of those who break the rules.

But his remarks came as the watchdog suffered a setback in its case for alleged market abuse against Paul ‘The Plumber’ Davidson, which was indefinitely postponed.

FSA chairman Callum McCarthy argued that the FSA should speed up enforcement to send the clearest possible message to would-be offenders.

‘When they are found to have substantially misbehaved, then it should be possible to make an example of them,’ McCarthy told The Financial Regulator magazine. read more

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Shell Chairman May Accelerate Asset Sales, Buyback

Bloomberg: Shell Chairman May Accelerate Asset Sales, Buyback (Update1)

“Royal Dutch/Shell Group Chairman Jeroen van der Veer, saddled with lawsuits and government probes related to Shell’s oil and gas reserves…”: Probes by the U.S. Justice Department, the Dutch securities regulator and the Euronext stock exchange are continuing.”

Posted 22 Sept 04

Sept. 21 (Bloomberg) — Royal Dutch/Shell Group Chairman Jeroen van der Veer, saddled with lawsuits and government probes related to Shell’s oil and gas reserves, may accelerate asset sales and extend stock buybacks to regain investors’ confidence.

Shell, based in London and The Hague, this year and in 2005 may sell chemical, and gas and power assets worth as much as $10 billion, including its share of chemicals maker Basell and power venture Intergen, analysts at Deutsche Bank AG said. The world’s third-largest oil company is scheduled to outline its strategy tomorrow in London, starting with a statement at 8:45 a.m. read more

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Appeals slow FSA disciplinary process

The Guardian: Appeals slow FSA disciplinary process

“The latest high-profile application to the tribunal was made last week by Sir Philip Watts, former chairman of Shell…”

JILL TREANOR

Sep 22, 2004

The Financial Services Authority admitted last night the rising number of appeals against fines it levies on firms and individuals breaking City rules was slowing down the disciplinary process.

Last year the FSA’s new chief executive, John Tiner, pledged to speed up the time it took the regulator to carry out inquiries. Callum McCarthy, the FSA chairman, told a City audience last night that appeals to the financial services and markets tribunal was preventing the regulator reaching this goal. He said that “the increased recourse to the tribunal may sadly not result in faster decisions or faster justice overall”. read more

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Nigerian gas venture to get $1.28bn loan

Financial Times: Nigerian gas venture to get $1.28bn loan

“…international banks and credit agencies lent $1.06bn to a Royal Dutch/ Shell-backed Nigerian liquefied natural gas project intended to become one of the largest in the world.”

By Michael Peel in Lagos and James Boxell in London

Posted 22 September 2004

A consortium of banks and the US government’s foreign private investment agency is to spearhead a $1.275bn loan to a gas venture run by ExxonMobil and the Nigerian government – a deal billed as the largest project finance loan in sub-Saharan Africa.

Nigeria, which has failed historically to provide full financing for the expansion plans of its joint ventures with oil multinationals, claims the deal will help to harness its huge but mostly untapped natural gas reserves. The investment, arranged by Credit Suisse First Boston bank and signed on Friday, comes after international banks and credit agencies lent $1.06bn to a Royal Dutch/ Shell-backed Nigerian liquefied natural gas project intended to become one of the largest in the world. read more

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Tough choices for oil companies in the quest to head off a global capacity crunch

Financial Times: Tough choices for oil companies in the quest to head off a global capacity crunch

How technology can squeeze more crude out: “Oil companies have found it difficult to locate new oil reserves. Shell this year became the industry’s most dramatic example, having to cut its proved reserves estimate by more than 20 per cent after struggling to find oil and providing the US Securities and Exchange Commission with false data from 1994 to 2002.”

By Carola Hoyos

Posted 22 September 2004

When Total, the French energy group, began in the 1990s to consider the tricky task of extracting extra-heavy crude oil from central Venezuela’s Orinoco belt, the company’s technicians would tell their bosses that all they needed to make the venture profitable was an extra $10 a barrel on the international oil price, recounts Thierry Desmarest, the company’s chairman and chief executive officer.

That wish has been granted. But it is not just higher oil prices that have made possible Total’s venture into what the industry calls “unconventional” oil – difficult to extract and requiring complicated processing. Advances in technology have played a part. read more

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FSA chairman warns against embracing ‘litigious society’

Financial Times: FSA chairman warns against embracing ‘litigious society’

“…Sir Philip Watts, the ousted chairman of Royal Dutch/Shell, said he planned to challenge the FSA’s findings on the company’s oil reserves.”

By Robert Orr

Published: September 22 2004

Callum McCarthy, chairman of the Financial Services Authority, last night warned companies against embracing a US-style “litigious society” by being too ready to challenge the regulator’s decisions in the courts.

The warning comes a week into the high-profile appeal by insurer Legal & General over a £1.1m FSA fine for alleged mortgage endowment mis-selling and a few days after Sir Philip Watts, the ousted chairman of Royal Dutch/Shell, said he planned to challenge the FSA’s findings on the company’s oil reserves. read more

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Western oil firms face risk of being stung by Russians

The Times: European Briefing: Western oil firms face risk of being stung by Russians

“Oil companies don’t mind difficult governments so long as they let them run the oil business. In Russia, it is clear that no such deal is on offer and it would be foolish for BP or Shell to believe that Russia is the answer to their oil reserve problems.”

By Carl Mortished

September 22, 2004

RUSSIAN oil and gas are like a wild honeycomb hanging from a tree. Perched high off the ground along a perilous branch and guarded by angry bees, it is nonetheless deliciously tempting and few Western companies can resist the urge to climb the tree and lick the honey as it drips from the comb.

BP was quick to spot the golden prize and is now sitting contentedly on the branch sucking honey off its paws. Shell, too, made an early start but both companies, having successfully negotiated the shaking limb, forgot to keep their eyes on what the bees were doing. read more

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Strategy to emerge from Shell

The Times: Strategy to emerge from Shell

“The oil company’s annual strategy presentation, to be held today in London, is viewed as a crucial test for Shell’s senior directors. Analysts are looking for evidence that Shell can fill the gap left by the removal from its proven reserves of 4.4 billion barrels of oil and gas.”

By Carl Mortished

September 22, 2004

HOPES that Shell would announce further disposals this morning pushed the Anglo-Dutch company’s stock to a 12-month high of 432p yesterday.

The oil company’s annual strategy presentation, to be held today in London, is viewed as a crucial test for Shell’s senior directors. Analysts are looking for evidence that Shell can fill the gap left by the removal from its proven reserves of 4.4 billion barrels of oil and gas. They are likely to focus on Nigeria and Oman, key areas where the company was forced to discount reserves in January. read more

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FSA chief’s warning on upsurge in legal challenges

The Times: FSA chief’s warning on upsurge in legal challenges

“CALLUM McCARTHY, chairman of the Financial Services Authority, hit out last night at the soaring number of lawsuits against the City regulator in what appeared to be a veiled swipe at Sir Philip Watts, the former chairman of Shell.”

By Patrick Hosking, Investment Editor

September 22, 2004

CALLUM McCARTHY, chairman of the Financial Services Authority, hit out last night at the soaring number of lawsuits against the City regulator in what appeared to be a veiled swipe at Sir Philip Watts, the former chairman of Shell.

Speaking at a Mansion House dinner, Mr McCarthy told City leaders that the growing number of legal challenges against the FSA threatened to add to costs and delay decisions. The warning came five days after Sir Philip instructed lawyers to start proceedings against the watchdog, accusing it of treating him unfairly in its investigation into Shell’s reserves misreporting. read more

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Shell Says It Will Sell More Assets, Increase Capital Spending

Bloomberg: Shell Says It Will Sell More Assets, Increase Capital Spending

“The company settled investigations with the SEC and the U.K.’s Financial Services Authority in July. Probes by the U.S. Justice Department, the Dutch securities regulator and the Euronext stock exchange are continuing.”

Sept. 22 (Bloomberg) — Royal Dutch/Shell Group, the world’s third-largest publicly traded oil company, said it plans to sell $10 billion to $12 billion of assets in the next two years to improve profitability while it raises capital spending.

The oil and gas division of Shell, based in London and The Hague, is targeting $5 billion of divestments, dilutions and other transactions during that time, the company said in a statement on PR Newswire.

Shell Chairman Jeroen Van der Veer, 56, wants to restore investor confidence after the company disclosed in January it had wrongly accounted for a fifth of its oil reserves. That led to the ouster of his predecessor and two other top executives and $150 million in fines from U.S. and U.K. regulators. read more

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Shell Hosts Strategy Review

YahooNews/PRNewswire: Shell Hosts Strategy Review

Regaining Upstream Strength, Delivering Downstream Profits: $45 billion in capital expenditure 2004-2006 anticipated: Focus on more Upstream gas and oil: Extend LNG leadership position: $10-12 billion in divestments planned 2004-2006: “Disclaimer statement”: “subject to risk factors…”: including potential litigation and regulatory effects arising from recategorisation of reserves…”

LONDON, September 22 /PRNewswire-FirstCall/ —

Focus on profitability and cash flow from Downstream businesses: Higher energy price environment

At a Strategy Review in London today Shell outlines its strategic plans for its upstream and downstream activities.

Jeroen van der Veer, Chairman of the Committee of Managing Directors chairs the session, with presentations also by Tim Morrison, acting Group CFO; Rob Routs, Group Managing Director (MD)/CEO of Oil Products and Chemicals; Malcolm Brinded, MD/CEO of Exploration and Production; and Linda Cook, MD/CEO of Gas and Power. The presentations will be repeated in New York on September 23, 2004. read more

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London Evening Standard: FSA bites back over ex-Shell boss

London Evening Standard: FSA bites back over ex-Shell boss

Steve Hawkes,

22 September 2004

THE Financial Services Authority has finally hit back at Sir Philip Watts over his blistering attack on the way the regulator dealt with his case when it slapped a £17m fine on Shell.

The City watchdog claimed it was ‘confident’ an independent tribunal would find in its favour and reject Watts’ claims that it broke its own rules by identifying and prejudicing him in its finding.

Watts last week stunned the City by announcing he was referring the FSA to the same Financial Services and Markets Tribunal currently hearing Legal & General’s challenge to a mis-selling fine. read more

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Shell’s battle plan fails to win City

London Evening Standard: Shell’s battle plan fails to win City

“But the overhaul promised by the Dutchman left the City distinctly unimpressed after he failed to commit to increasing share buybacks and admitted that it may be 2009 before oil and gas output grows.”

Steve Hawkes

22 September 2004

SHELL has put the For Sale sign up over huge swathes of its business as chairman Jeroen van der Veer today detailed plans to transform the oil giant and bounce back from the worst crisis in its history.

But the overhaul promised by the Dutchman left the City distinctly unimpressed after he failed to commit to increasing share buybacks and admitted that it may be 2009 before oil and gas output grows.

The shares fell 10 3/4p to 421 1/2p. ‘Frankly, I’m disappointed,’ one analyst said. read more

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Shell makes oil find off Malaysia

Reuters: Shell makes oil find off Malaysia

“We are delighted to announce this highly significant discovery, our second offshore Sabah oil discovery within a year,” Shell Malaysia Chairman Jon Chadwick said in the statement on Wednesday.

Wed 22 September, 2004

KUALA LUMPUR (Reuters) – Shell has made another major oil find in deep waters off Malaysia’s eastern Sabah state in a joint exploration with state oil firm Petronas and U.S. oil firm ConocoPhillips.

Shell SHEL.L gave no output estimates or reserves in a statement it released on the discovery at the Malikai-1 exploration well, located in Deepwater Block G, northwest of Sabah.

It said initial indications of crude characteristics at Malikai showed oil which was of high quality. read more

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Shell Deer Park refinery set to implement environmental mandates

The Pasadena Citizen: Shell Deer Park refinery set to implement environmental mandates

“Officials at Shell DP had no comment on the pending county lawsuit.”

By HEATHER L. NICHOLSON, Citizen reporter

Posted 21 Sept 04

In an effort to meet federal environmental mandates and recover from a less than flattering pollution report, the Shell Deer Park Refinery is planning several upgrades in the plant’s production unit estimated to exceed $250 million.

Soon after the U.S. Environmental Protection Agency announced earlier in the year that Houston-area plants caused some of the worst ground-level ozone pollution in the country, Harris County hit Shell DP with a lawsuit seeking fines for pollution violations. 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.

‘Plumber’ seeks legal aid for appeal

London Evening Standard: ‘Plumber’ seeks legal aid for appeal

“The setback comes only a week after former Shell chairman Sir Philip Watts said that he was taking the FSA to the tribunal for the way it allegedly pointed the blame at him when it fined Shell £17m for market abuse relating to oil reserves overstatements.”

James Rossiter,

Posted 21 September 2004

THE Financial Services Authority has suffered another major setback in its market abuse case against entrepreneur Paul ‘The Plumber’ Davidson.

An appeal by Davidson against a £750,000 fine imposed by the City watchdog was due to reconvene today but has been delayed indefinitely after a last-minute request from Davidson for the State to foot his legal bill.

The delay comes three months after the appeal was first suspended and the panel of tribunal members replaced when it emerged that one of them had discussed the case with his neighbour, then head of the FSA’s disciplinary committee. read more

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Asia Pulse: ANGOLA BLOCKS INDIAN DEAL TO BUY SHELL STAKE IN OIL FIELD

Asia Pulse: ANGOLA BLOCKS INDIAN DEAL TO BUY SHELL STAKE IN OIL FIELD

Sep 20, 2004

NEW DELHI, Sept 20 Asia Pulse – ONGC Videsh Ltd’s attempt to buy oil major Shell’s stake in a 10 million tonnes per annum oil field in Angola is unlikely to go through with Luanda deciding to block the deal.

Petroleum Minister Mani Shankar Aiyar met Angolan Minister for Petroleum Desiderio da Graca Verissimo e Costa on the sidelines of an OPEC conference in Vienna, but could only extract an assurance that Angola would consider farming-in OVL after Shell’s 50 per cent stake in the block is taken over by Sonangol. read more

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Parlous state of Shell’s oil exploration business

Financial Times: “While Royal Dutch/Shell has been grappling with its corporate structure in the wake of the scandal over its overbooking of reserves, attention has been drawn away from the parlous state of its oil exploration business.”

20 Sept 04

While Royal Dutch/Shell has been grappling with its corporate structure in the wake of the scandal over its overbooking of reserves, attention has been drawn away from the parlous state of its oil exploration business.

Wednesday’s strategy review will give the Anglo- Dutch group the opportunity to show how it is getting back to the fundamental business of finding oil. Its reserve replacement rate – the level at which it replaces the oil that it pulls from the ground – is running at a deeply unimpressive 60-80 per cent this year. The company is aiming to get this back up to 100 per cent over the next five years. 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.

Hand-outs to Sir Philip Watts and Walter van de Vijver a disgrace

The Scotsman: Comment: “Walter van de Vijver, head of exploration at Shell, got £2.5m and his boss Sir Philip Watts £1.1m. These hand-outs are a disgrace. They undermine popular capitalism. They throw goodwill down the drain.”: “Little wonder small investors are turning away in droves from the stock market.”

Posted 20 Sept 04

JUST when – if ever – will the boardroom pay bonanza come to an end?

Case after case of huge pay-outs to directors sparks shareholder fury. But the gilded, rotten caravan rolls on.

Now come two fresh cases that will stir controversy. Yesterday it emerged that Abbey National chief executive Luqman Arnold is set to make £5.1 million through Banco Santander’s likely £8.8 billion offer.

He stands to get up to £3.5m from share options. And he is also due to receive a £1.6m termination payment when he quits next June. 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.

FSA chief pledges to ‘make an example’ of groups breaching rules

Financial Times: FSA chief pledges to ‘make an example’ of groups breaching rules

“He indicated that the record £17m fine imposed on Royal Dutch/Shell for overstating its oil reserves set a new benchmark for the level of fines that would be levied on leading companies that failed to discharge their responsibilities to investors.”

By Krishna Guha

Published: September 20 2004

The Financial Services Authority will “make an example” of companies and individuals that breach its regulations, its chairman has warned.

Signalling there would be no let-up in the crackdown on market abuse, Callum McCarthy said making examples of wrongdoers was the only way to get the regulator’s message across and change corporate behaviour.

He indicated that the record £17m fine imposed on Royal Dutch/Shell for overstating its oil reserves set a new benchmark for the level of fines that would be levied on leading companies that failed to discharge their responsibilities to investors. 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.

NLNG still faces challenges

Financial Times: NLNG still faces challenges

“Investors in the $12bn project – the Nigerian government and oil companies Royal Dutch/Shell, Total and Eni – are hoping the optimism surrounding the project will survive challenges presented by Nigeria and the world gas market.”

By Michael Peel

Published: September 20 2004

Badewa Adewumi, a plant operator at the Nigeria Liquefied Natural Gas (NLNG) production facility at Bonny Island, shows off its immense domed storage tanks and a cooling system. The scale shows how the facility has progressed from shipping its first cargo five years ago to becoming one of the world’s most ambitious natural gas projects.

“When I got the job, I said at the interview: ‘I hope it’s going to last’,” Mr Adewumi says. “They said: ‘Yeah, sure’. It’s been worth it.” read more

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Shell asks publisher how to manage its Anglo-Dutch split

Daily Telegraph: Shell asks publisher how to manage its Anglo-Dutch split

“Executives at crisis-hit oil and gas giant Shell have approached Reed Elsevier for tips on how to copy its management structure”

By David Litterick and Christopher Hope (Filed: 20/09/2004)

Executives at crisis-hit oil and gas giant Shell have approached Reed Elsevier for tips on how to copy its management structure as the Anglo-Dutch group seeks ways to improve its corporate governance.

Sir Crispin Davis: completed the unification of Reed Elsevier’s boards

The news is the clearest signal yet that Shell is moving towards combining its two boards, as Reed has done, rather than spend hundreds of millions of pounds merging its UK and Dutch businesses. read more

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Daily Mail: Shell launches charm offensive

Daily Mail: Shell launches charm offensive

“Shell shares at 417 1/2p have recouped their losses on the reserve shock. That should help in fighting US legal claims, but it is largely due to the soaring price of crude.”

20 September 2004,

SHELL will this week beat the drum about slimming down its sprawling global empire. Chief executive Jeroen van der Veer can point to up to £5.6bn of likely proceeds from a growing list of disposals.

But his major City presentation on Wednesday needs to convince investors that the sales cash will not be soaked up in cost overruns on major projects.

The best news of all would be some sizable new discoveries. Shell has been drilling actively in the Gulf of Mexico, Nigeria, Morocco and Malaysia. It is also seeking to line up a big gas deal in Libya. Its £1.1bn share buyback programme is likely to be stepped up. read more

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Open Season On Big Oil

Business Week: Open Season On Big Oil

An angry public wants quick relief from high prices. Here’s why none is in sight: “Even promising projects are becoming harder to pull off — a reality underlined this summer when Royal Dutch/Shell estimated that its Sakhalin II gas project in Russia would wind up costing $20 billion, double earlier forecasts.”

Monday 19 Sept 2005

John Browne, the chief executive of BP PLC (BP), the largest producer of oil and gas in the U.S., is already spending $14.5 billion this year on exploration and production and other capital projects, and he would like to do even more. “Could we expand our investment upstream?” he says in an interview in his office overlooking London’s St. James’s Square. “The answer is we have plenty of opportunities to do that. But we can’t find the rigs, the service contracting, all the things we need to get it done.” read more

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Shell Has A Chance To Impress With Strategy Update

THE WALL STREET JOURNAL: Shell Has A Chance To Impress With Strategy Update

“management will Wednesday try to convince the market that the humbled Anglo-Dutch oil giant is on the road to recovery after years of weak performance and a headline-grabbing reserves scandal.”

By MARK LONG

Of DOW JONES NEWSWIRES

Posted 19 Sept 04

LONDON — Royal Dutch/Shell Group’s (RD, SC) management will Wednesday try to convince the market that the humbled Anglo-Dutch oil giant is on the road to recovery after years of weak performance and a headline-grabbing reserves scandal.

A long-anticipated strategy presentation in London may well disappoint Shell watchers eager for an update on possible changes to the group’s century-old corporate structure. Chairman Jeroen van der Veer just Thursday reiterated that the results of a comprehensive structure review won’t come until November. read more

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Opec paying price for ban on oil majors

The Business: Opec paying price for ban on oil majors

“Qatar, eager to catch up in the Middle East, has given Exxon Mobil, Total and Royal Dutch/Shell stakes in the North Field and used them to build liquefied natural gas schemes.”

By Richard Orange

19 Sept 04

TO Qatar it is the North Field, to Iran it is called South Pars. Whichever you choose, the reservoir beneath the Gulf, shared between the two countries, holds more natural gas than any other in the world and a significant amount of oil. How the countries have handled its exploitation demonstrates the importance of doing deals with the oil majors.

Last week the majors called on delegates at the Opec conference to open up their territories to investment. The main reason they gave was to beat the shortage of oil production capacity; cynics would say they are salivating at the prospect of new business. read more

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Being beastly to Sir Philip Watts, the ousted former chairman of Shell

Sunday Telegraph: City Diary: Hedge Hopper

“Martyn Hopper of Herbert Smith is the legal beagle sinking his teeth into the Financial Services Authority for being beastly to Sir Philip Watts, the ousted former chairman of Shell.”

By Robert Watts

Martyn Hopper of Herbert Smith is the legal beagle sinking his teeth into the Financial Services Authority for being beastly to Sir Philip Watts, the ousted former chairman of Shell. Watts and Hopper allege the City policeman has produced a “fundamentally flawed” report into the fiasco of the oil giant’s overbooking of reserves and has stomped all over the veteran oil man’s rights.

But who is Hopper? Err, he’s none other than the former head of the FSA enforcement division’s Market Integrity Group (the inquisitors of the City’s rampers and dodgers). read more

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Shell weighs multi-billion share buyback to win over investors

Independent On Sunday: Shell weighs multi-billion share buyback to win over investors

“Shell, the tarnished oil giant…”

By Tim Webb

19 September 2004

Shell, the tarnished oil giant, is considering buying back billions of pounds’ worth of its shares in a bid to restore investor confidence.

The news comes as new chairman Jeroen van der Veer prepares to convince the City this week that he can turn the company around as he unveils his delayed annual strategy presentation.

The Dutchman will announce a wide-ranging review of Shell’s oil exploration and production business in a bid to reverse lagging output and reserves figures. read more

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Shell ‘to scrap dual board structure’

The Observer: Shell ‘to scrap dual board structure’

“Shell chief executive Jeroen van der Veer has accepted that the beleaguered Anglo-Dutch oil company must overhaul its complicated structure and introduce a single board, according to a key investor.”

Oliver Morgan, industrial correspondent

Sunday September 19, 2004

Shell chief executive Jeroen van der Veer has accepted that the beleaguered Anglo-Dutch oil company must overhaul its complicated structure and introduce a single board, according to a key investor.

Eric Knight is managing director of Knight Vinke Asset Management and was one of the most vocal critics of Shell’s management structure in the months after the oil company revealed it had over-booked its reserves. He now says he is satisfied van der Veer has decided to make the move. read more

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When Shell freezes over

The Observer: When Shell freezes over

“The Anglo-Dutch group will tighten up its sloppy board structure, which arguably contributed to the reserves scandal. Power will be concentrated in one board, rather than three, and the group will have a single chief executive. But big deal. That’s what most sensible companies do already.”

Richard Wachman

Sunday September 19, 2004

If anyone thinks that Royal Dutch Shell is going to make an earth-shattering announcement at its long-awaited City strategy briefing this week, they will probably be disappointed. The wheels turn exceptionally slowly at Shell.

Take the long-running review of corporate governance that has been going on since Easter, unveiled in the wake of revelations that Shell had improperly booked 20 per cent of its oil and natural gas reserves.

In the months that followed, three senior executives walked the plank and Shell has paid $151 million in fines to regulators on both sides of the Atlantic. It still faces a probe by the US Department of Justice. But results of the internal review into how corporate governance could be improved will not be known until November. And it will probably end up telling us what we always suspected. read more

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Different approaches to dealing with shame

Sunday Herald: Different approaches to dealing with shame

“Now, most people confronted with the evidence displayed in an e-mail trail between senior people in the company discussing reserves going back more than two years would have opted for keeping their headdown. Not Sir Philip.”: “Mind you, with the number of other investigations still being conducted into the Shell reserves affair, it was unlikely that Sir Philip was going to be free of “my learned friends” any time soon.”

Scandal Monger

Ken Symon

19 September 2004

We saw two very different reactions from individuals to their embroilment in scandal over the last week and both were pretty surprising.

Sir Philip Watts caused more than a few raised eyebrows in business circles this weekend as he launched a fightback against the City watchdog, the Financial Services Authority (FSA).

In an interview with the Financial Times he challenged the FSA’s findings on the oil reserves scandal at Royal Dutch/Shell, where he was formerly chairman. read more

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Eyes on Shell again as new boss tries to fight back

Scotland On Sunday: Eyes on Shell again as new boss tries to fight back

“…Cairn Energy – the Edinburgh firm which looks set to rake in bucketloads of cash from Indian assets it bought for a song from Shell – officially begins trading on the FTSE100 tomorrow.”

IAIN DEY

19 Sept 04

SHELL is set to find itself the centre of the market’s attention yet again this week as it unveils the findings of its strategic review.

The oil giant’s new chairman, Jeroen van der Veer, and his head of exploration, Malcolm Brinded, will try to draw a line under the reserves reporting scandal which hammered its shares earlier in the year.

But investors are expected to have to wait until November to hear details of any changes to its baroque corporate structure – which remains the biggest issue for the City. read more

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Did the great Shell really falsify its oil reserves

The Observer: Our red badge of failure: “Did the great Shell really falsify its oil reserves over many years, with top people conniving at, instead of jumping on, the deceit?”: “Yes, they did.”

Robert Heller argues that the British can manage – just not on a large scale

Sunday September 19, 2004

The British economic miracle, if that’s what it is, has been achieved without any marvels from manufacturing. Once, that would have been impossible. But today, so New Labour and several pundits assert, the thing-makers of industry don’t matter.

How rising incomes are achieved is insignificant. So long as Brits earn more, even if only for their services as over-paid lawyers, the GDP will rise, and they can go on cocking snooks at the labouring continental economies. Manufacturers begin at Calais – and so what? read more

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Day of destiny draws near at troubled Shell

THE MAIL ON SUNDAY: Day of destiny draws near at troubled Shell

“Shares in Shell fell as low as 348p in the wake of the scandal, and while it has since regained its pre-crisis level, it is still lagging far behind rival BP…”

19 Sept 2004

LONG-suffering investors in Shell will hope that the coming week will mark a watershed in the oil giant’s recent troubles.

The chairman of the Anglo-Dutch company, Jeroen van der Veer, will stand up in front of City analysts and top institutions on Wednesday to deliver the group’s latest strategic plan. It will certainly be the defining moment of his career. It may well also be the defining moment for the future of the once-great Royal Dutch Shell group.

The company’s shares have been nudging 420p for much of this month in apparent anticipation that this week’s presentation will draw a convincing line under the difficult year and outline a clear path to recovery. The 420p mark is roughly where they stood at the start of the year before the firm’s devastating announcement that it had overstated the scale of its oil reserves. read more

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Graduate career at Shell

The Times: Inside info: Shell: Erum Loan, the Shell recruitment manager for the UK, Ireland and Southern Europe, tells us what is needed if you want to get a graduate career with the oil giant away from the oilrigs and forecourts

Posted 18 Sept 04

What jobs might graduates be doing if they join Shell?

Graduates can begin their careers with Shell in a wide range of either technical or commercial jobs. On the technical side, it could be as a geologist, a production or field engineer. Graduates who join the commercial side of Shell could be market analysts, human resources specialists, coordinators or marketing advisers.

How many graduates are recruited each year?

UK university leavers are included in the recruitment for graduates in what Shell calls the Europe, Middle East, Africa and Russia region. Naturally it is a large catchment area from which we recruit about 250 graduates annually. read more

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Irish Independent: Shell keen to put scandal behind it

Irish Independent: Shell keen to put scandal behind it

Sept 18, 2004

ROYAL Dutch/Shell Group is expected to try to put the damaging scandal of its overstated oil reserves behind it when it gives its annual strategy presentation next week.

Analysts said they hoped the presentation would give clues on asset disposals, expected changes in Shell’s governance structure and details of how the company plans to achieve its reserve replacement targets in coming years.

More clarity on those issues could support its share price, they said.

However, some in the market do not expect much news and believe the focus will be on whether senior management shows it is committed to changing what some consider Shell’s inadequate corporate governance structure. read more

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Test of power for market watchdog

Financial Times: Test of power for market watchdog

Sir Philip Watts, ousted chairman of Royal Dutch/Shell, has complained that the FSA “identified and prejudiced him” in its action against the company.

Published: September 18 2004

Big Brother, the Spanish Inquisition, Goliath – it is easy to caricature the Financial Services Authority. Perhaps the world’s most powerful regulator in terms of scope, it has also been raising its profile as an enforcer.

Now it faces a series of challenges from companies and individuals on the receiving end. Legal & General, the life assurer, is appealing against a £1.1m fine for mis-selling endowment mortgages: its hearing started this week at the Financial Services and Markets Tribunal. Sir Philip Watts, ousted chairman of Royal Dutch/Shell, has complained that the FSA “identified and prejudiced him” in its action against the company. A tribunal hearing is also pending over a £750,000 fine on Paul Davidson over a spreadbet. read more

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You can’t be sure of Shell, says the City

The Guardian: You can’t be sure of Shell, says the City

With an investor charm offensive this week and a terrible year behind them, executives must be nostalgic for the group’s imperial past: “Shell will this week make a desperate attempt to draw a line under the oil reserves scandal…”

TERRY MACALISTER

Sept 18, 2004

Shell will this week make a desperate attempt to draw a line under the oil reserves scandal that has dogged the company since the start of the year by outlining its strategic plans for the future.

But chairman Jeroen van der Veer and his exploration boss, Malcolm Brinded, will hold the critical briefing in the City on Wednesday with menacing storm clouds hanging over their heads.

While Hurricane Ivan forced the Anglo-Dutch oil giant to shut down platforms in the Gulf of Mexico earlier this week, a verbal hurricane – emanating from its dismissed former chairman Sir Philip Watts – was blasting the Financial Services Authority. read more

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India – Angola may foil Shell’s bid to sell shares to India

Indo-Asian News Service: India – Angola may foil Shell’s bid to sell shares to India

17-September-2004

India News – New Delhi, India’s attempt to acquire Royal Dutch Shell’s 50 percent stake in an offshore exploration block in Angola may fall through with the African nation likely to exercise its pre-emption rights.

At the same time, given the political ties between the two countries, Angola has agreed to consider India’s request for participation in the exploration, Petroleum Minister Mani Shankar Aiyar said Friday.

“We are likely to get farming-in (participatory) interest through the Angolan state oil company’s share rather than through Shell’s share,” Aiyar said in a teleconference from Vienna, where he is attending a meeting of the Organisation of Petroleum Exporting Countries (OPEC). read more

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Oilvoice.com: Shell Awarded Eight Blocks in 22nd Offshore Licensing Round

Oilvoice.com: Shell Awarded Eight Blocks in 22nd Offshore Licensing Round

17 September 2004

Shell U.K. Limited has been awarded two licences in the 22nd offshore licensing round in the UK Continental Shelf. Both licences are in the deep water Atlantic area West of Shetland and comprise a total of eight blocks. One is a new ‘Frontier’ licence with BP as partner and the other a Traditional licence with BP, ChevronTexaco and Faroe Petroleum as partners. Shell will be operator in both cases.

Kieron McFadyen, Technical Director of Shell Exploration & Production in Europe said: “We are very pleased with the awards in this licensing round. We believe the Atlantic margin West of Shetland is an area of potential. The award of these new licences is a further demonstration of Shell’s continued commitment to the North Sea and as the leading oil and gas operator in the UK Continental Shelf.” read more

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Watts attacks FSA over ‘flawed’ Shell inquiry

Daily Telegraph: Watts attacks FSA over ‘flawed’ Shell inquiry

“Sacked boss says watchdog violated his rights in ruling on reserves scandal”

By James Moore (Filed: 17/09/2004)

Sacked boss says watchdog violated his rights in ruling on reserves scandal

Former Shell chief Sir Philip Watts yesterday accused the Financial Services Authority of “violating” his rights and running a “fundamentally flawed” investigation into the company’s oil and gas reserves debacle.

Breaking his silence for the first time since he was ousted in February, Sir Philip said in a statement that the FSA had identified and prejudiced him in its published judgment on the scandal despite not mentioning him by name. read more

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The week in which a watchdog came under a heavy Shelling

Daily Telegraph: The week in which a watchdog came under a heavy Shelling

“Sir Philip Watts is hardly going to enjoy being linked with Robert Maxwell but he probably owes the fat fraudster rather more than he realises.”

City comment

Edited by Neil Collins, City Editor

(Filed: 17/09/2004)

Sir Philip Watts is hardly going to enjoy being linked with Robert Maxwell but he probably owes the fat fraudster rather more than he realises. It was Maxwell, twisting in front of the Department of Trade, who forced the concession that he should be allowed prior sight of the findings of the bits of any inquiry that related to him.

Since then, some sort of “Maxwell clause” has been inserted into most relevant bits of legislation, including the Financial Services and Markets Act, under which the FSA operates. Sir Philip has managed to keep quiet while he watched his lifetime’s work and reputation being put through the shredder, but the devastating report into Shell’s downgrade of its reserves was the last straw. read more

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Ousted Shell chief takes FSA to court

The Times: Ousted Shell chief takes FSA to court

“The FSA accused Shell of “unprecedented misconduct” resulting in market abuse and breach of listing rules.”

By Patrick Hosking, Investment Editor

September 17, 2004

SIR PHILIP WATTS, the ousted chairman of Shell, is taking the Financial Services Authority to court, claiming it treated him unfairly in its judgment on the oil group’s reserves mis-statement scandal.

Sir Philip yesterday announced plans to challenge the regulator in the Financial Services and Markets Tribunal, the appeal court for FSA decisions.

He accused the FSA of unfairly blackening him and prejudicing a continuing FSA investigation into his conduct when it fined the oil company £17 million last month for misleading shareholders. read more

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