Royal Dutch Shell Group .com Rotating Header Image

ANOTHER BAD NEWS DAY FOR SHELL

ANOTHER BAD NEWS DAY FOR SHELL

LONDON TIMES ARTICLE IMPLIES THAT SHELL ISSUED A FALSE PROSPECTIVE FOR ITS MERGER: THE INDEPENDENT SAYS THAT SHELL IS “RUDDERLESS”: FT CLAIMS THAT INVESTORS DUMPED THE NEW UNIFIED SHELL SHARES ON THEIR DEBUT DAY AND REVIVES DESIRABLE PROSPECT OF TOTAL/SHELL MEGA-MERGER

Thursday 21 July 2005

By Alfred Donovan

We warned just a few days ago of the huge potential ramifications of the Sakhalin-2 cost overrun debacle. We are pleased to see that the mainstream press has now also picked up on the implications. Our article, first published on Monday 18 July is reprinted below: –

ShellNews.net: THE SHELL SAKHALIN-2 DEBACLE: Credibility concerns over Royal Dutch/Shell Executives, Jeroen van der Veer and Malcolm Brinded following the Salhalin2 $10 billion cost overrun scandal.: “The only thing which has saved the hangover management at Shell is the one element over which they have no influence – the high oil price. In every other respect they are an unmitigated disaster. They should be sent packing.”: Monday 18 July 2005

News of the latest Shell shocker – the $10 BILLION capital expenditure overrun in the Sakhalin-2 project in Russia is understandably making headlines around the globe. It is surely the biggest management oversight blunder in corporate history (if we leave the Royal Dutch/Shell reserves scandal to one side).

According to a report published yesterday in Mosnews, Royal Dutch/Shell CEO Jeroen van der Veer is claiming that he only learnt about this latest financial disaster last Wednesday and informed Gazprom on Thursday (Read the article). This implies that no Shell director was aware of the £10 BILLION OVERSPEND SURPRISE at the time of the unification AGM’s on 28 June, just 20 days ago! That is simply incredible.

No wonder that Mr Van der Veer has had to telephone the Russians at Gazprom in a panic to try to explain the dramatically changed financial landscape for the project in which they had just become partners as a result of a swap deal with Shell. Naturally Gazprom wants under the changed circumstances to renegotiate the deal. They must feel cheated and deceived. Gazprom said on Friday it considered Shell’s assets on Sakhalin-2 to be worth less after Shell doubled the project’s cost estimates to $20 billion, Reuters news agency reported. The renegotiation puts the Gazprom/Shell deal in jeopardy. That in turn puts Shell’s recovery plan in peril.

As it states in a recent Daily Mail article about the Sakhalin-2 debacle: “If a national government were to admit an error on such a scale the finance minister would almost certainly pay with their job.”: “Daily Mail: Sakhalin shock”: 17 July 2005.

Mr Van der Veer, who has all the chrismal of a piece of wet lettuce and all too often speaks in unintelligible jargon, has acknowledged in a recent interview with the Financial Times that Shell’s reputation has once again be severely damaged. He is quoted as saying: “I fully realise it has an impact on our reputation – certainly for this project, and then of course I’m concerned it will carry over to other things that we do…”

Van der Veer and the CEO of Royal Dutch/Shell E & P, Malcolm Brinded, are already named defendants in a billion dollar US Class Action lawsuit brought against them in respect of the reserves scandal. It is a mystery why executives tainted by that scandal were allowed to remain at Shell and be falsely presented as a “new management team”. They were in fact key members of the previous thoroughly discredited management. Shell has already agreed to pay almost a quarter of a BILLION dollars ($240 million) in regulatory fines and settlements in respect of the reserves scandal which involved alleged fraudulent information personally certified by Van der Veer and Brinded on 20F forms supplied to the US Security & Exchange Commission. The information was false. That is an undisputed fact. Hence the fines from the SEC and the FSA.

Lets face another fact. The only thing which has saved the hangover management at Shell is the one element over which they have no influence – the high oil price. In every other respect they are an unmitigated disaster. I warned Shell directors last year that these were the wrong men. They should both be sent packing.

SHELL’S LEGAL VIEW ON THIS WEBSITE

I would like to remind Shell lawyers that the “group” has placed on record its acknowledgement of my freedom to air my opinions about Shell on ShellNews.net. I did of course already have rights under various freedom of expression conventions and declarations but its nice to know that Shell, one of the multinational rulers of our planet, recognises this fact. The Royal Dutch Shell Group has made the following extraordinary statement in a legal document in regards to this website: –

“The… Group… have been aware of the site since the beginning and whilst they would not endorse or agree with many of the comments made by the Respondent on the website, they have taken the view that the Respondent is entitled to express his opinions and to use the Internet as a medium for doing so.”

The above legal statement drafted by Shell lawyers and authorised by the “Group”, amounts to a tacit approval/acceptance/recognition of this website. It was submitted to The World Intellectual Property Organisation in May 2005 by Shell International Petroleum Company Limited on behalf of the Royal Dutch Shell Group in relation to Alfred Donovan, the “Respondent” in proceedings in respect of the domain name www.royaldutchshellplc.com

It remains a mystery why they take an entirely different view in respect of the former Shell geologist Dr John Huong, the well-known Shell whistle-blower, in relation to postings under his name elsewhere on this same website. Eight companies within the Royal Dutch Shell Group collectively obtained a High Court Injunction to silence him.

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Comments are closed.

%d bloggers like this: