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September, 2005:

Shelling out at last

The Times: Shelling out at last

“SHELL’S chief executive, Jeroen van der Veer, should be after the head of whoever was responsible for making him look mean and insensitive when, it now transpires, this could have been avoided.”

Wednesday 21 September 2005

SHELL’S chief executive, Jeroen van der Veer, should be after the head of whoever was responsible for making him look mean and insensitive when, it now transpires, this could have been avoided.

For months Shell contended that it could do nothing to help UK investors in Royal Dutch who were to be saddled with extra tax bills because of the group’s restructuring.

Now, after the majority had accepted their unhappy fate, a remedy has been found. This-is good news for the few who held out, but not good enough for a business that should have its share of clever accountants. 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.

Daily Telegraph: Shell bows to UK investor pressure

Daily Telegraph: Shell bows to UK investor pressure

“Shell yesterday performed an embarrassing U-turn and offered new tax-free merger terms to British investors in Royal Dutch Petroleum:”: “However, Shell is risking the wrath of British shareholders in Royal Dutch who accepted the terms of the deal and have been left with a multi-million pound tax bill. Shell said that it believed it was not “appropriate” to compensate them.”: “I think they realised that they had made a big mistake. I don’t think they thought people would protest.”

Wednesday 21 Sept 2005

By Christopher Hope, Business Correspondent (Filed: 21/09/2005)

Shell yesterday performed an embarrassing U-turn and offered new tax-free merger terms to British investors in Royal Dutch Petroleum who were refusing to agree to the unification with Shell Transport & Trading.

However, Shell is risking the wrath of British shareholders in Royal Dutch who accepted the terms of the deal and have been left with a multi-million pound tax bill. Shell said that it believed it was not “appropriate” to compensate them. 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.

At last Shell oil – but only for the squeaky wheels

Daily Telegraph: At last Shell oil – but only for the squeaky wheels

“…the treatment of the British Royal Dutch holders is one of Shell’s more disappointing episodes and an unwelcome throwback to its old reputation for corporate arrogance.”

Wednesday 21 Sept 2005

Finally some common sense is seeping out from the Shell lubyanka over the fate of British holders in Royal Dutch Petroleum. These were the unfortunate shareholders who were landed with a big tax bill after the oil and gas giant restructured.

Unfortunately, Shell’s tax-free solution comes too late for those unlucky souls who accepted the deal during the summer. Its loan note alternative only helps the noisy minority of Royal Dutch refuseniks who were rich and/or stubborn enough to hold out against the corporate might of Shell. The rest – mostly smaller investors who accepted under threat of a “Dutch squeeze-out” – get nothing. read more

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Nigeria Militants Set Deadline, Threaten Violence

THE NEW YORK TIMES: Nigeria Militants Set Deadline, Threaten Violence

By REUTERS

Published: September 21, 2005

Filed at 9:03 a.m. ET

ABUJA (Reuters) – A Nigerian militant group from the oil-producing Niger Delta threatened on Wednesday to attack government and oil industry facilities if their leader, Mujahid Dokubo-Asari, was not released by 1300 GMT (0900 EDT).

Police said Asari had been arrested over “seditious and treasonable” comments, in which he called for the disintegration of Nigeria, and could face prosecution.

He routinely makes such calls.

Asari was arrested in the oil city of Port Harcourt and flown to the federal capital Abuja on Tuesday. His supporters had threatened to cause “grave mayhem” for the oil industry within 24 hours unless they heard from their leader. read more

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Cairn storms on after Indian field breaches forecasts

Daily Telegraph: Cairn storms on after Indian field breaches forecasts

“Cairn has now found 2.5billion barrels of oil – 1.7billion of which have already been verified by independent consultant DeGolyer & MacNaughton – since January last year.”: “The company has drilled 100 wells – 12 of which have struck black gold – on a field the same size as 12 North Sea blocks. Cairn bought the prospect from Shell for just $7.25m (£4m) in 2002.”

Wednesday 21 Sept 2005

By Christopher Hope, Business Correspondent (Filed: 21/09/2005)

Cairn Energy’s shares gushed through £20 yesterday after the Scottish oil explorer boosted forecast daily production from its key Indian field again and said it was confident of finding more oil there.

Bill Gammell, chief executive, also moved to reassure investors concerned that the Indian government might step into take a bigger chunk of the field in Rajasthan, north-west India.

Cairn said its daily production would be “in excess of 150,000bpd” from the fields, ahead of the previous range of 120,000bpd to 150,000bpd and more than double the 60,000bpd forecast this time last year. read more

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Daily Mail: Shell’s pain is Cairn Energy’s gain

Daily Mail: Shell’s pain is Cairn Energy’s gain

“Canny Scottish operator Cairn bought the Indian fields three years ago for just £4m – from Shell.”

Wednesday 21 Sept 2005

By Ruth Sunderland

SHELL has been forced into a climb down following a row with 400 rebel private investors over the unification of its British and Dutch arms.

The dissident small shareholders had refused an offer from Shell to sell their shares in its former Dutch parent company because it would have landed them with 40pc capital gains tax bills.

The company will now offer a loan note to the rebels which can be exchanged for new shares -therefore avoiding a tax charge.

The UK side of Shell was united with its Netherlands counterpart this summer in a bid to improve transparency in the wake of last year’s oil reserves scandal. 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.

Reuters: Shell may need to pay cash for Sakhalin swap-Gazprom

Reuters: Shell may need to pay cash for Sakhalin swap-Gazprom

“Russian gas giant Gazprom said on Wednesday that Shell might have to pay it cash as part of an asset swap after the oil major doubled the project’s cost estimates in July to $20 billion.”

Wednesday 21 Sept 2005

BEIJING, Sept 21 (Reuters) – Russian gas giant Gazprom (GAZPPE.RTS: Quote, Profile, Research) said on Wednesday that Shell (RDSa.L: Quote, Profile, Research)(RDSa.AS: Quote, Profile, Research) might have to pay it cash as part of an asset swap after the oil major doubled the project’s cost estimates in July to $20 billion.

Gazprom agreed in July to swap a 50 percent stake in its Siberian gas field Zapolyarnoye for a 25 percent stake in the Shell-led Sakhalin-2 liquefied natural gas (LNG) project off Russia’s far east coast. 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.

Royal Dutch Shell offers way out of £77m tax bill

The Times: Royal Dutch Shell offers way out of £77m tax bill

“ROYAL DUTCH SHELL, the newly unified oil and gas group, has moved to appease a small group of disgruntled British shareholders by proposing a way to avoid a £77 million tax bill.”

Wednesday 21 Sept 2005

By Peter Klinger

ROYAL DUTCH SHELL, the newly unified oil and gas group, has moved to appease a small group of disgruntled British shareholders by proposing a way to avoid a £77 million tax bill.

The Anglo-Dutch group said yesterday that it would buy out remaining shareholders in its Royal Dutch arm either with cash or by issuing a loan note. The loan note, particularly applicable to British-based owners of Royal Dutch shares, could be exchanged for new “A” shares in the company without incurring capital gains tax. 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 offers way out of tax glitch

Financial Times: Shell offers way out of tax glitch

“Royal Dutch Shell has belatedly found a solution to a problem that had created an immediate capital gains tax liability for some of its UK private shareholders.”: “There would be no compensation for shareholders who had already tendered their shares, Shell said.”

Wednesday 21 Sept 2005

By Clay Harris

Published: September 21 2005

Royal Dutch Shell has belatedly found a solution to a problem that had created an immediate capital gains tax liability for some of its UK private shareholders.

UK holders of Royal Dutch, one of the predecessor companies to the unified oil and gas group that was created in July, will now be offered a loan note alternative to the share exchange that was the basis of the original transaction.

That will allow any CGT liability to be deferred, although it comes too late for any investors who have already accepted the original offer. 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 offers investors deal to avert tax threat

The Independent: Shell offers investors deal to avert tax threat

“The oil giant, Royal Dutch Shell, backed down yesterday in the face of protests…”: “However, the company was still criticised for coming up with the scheme too late to help hundreds of Royal Dutch shareholders who have already agreed to swap their old shares for ones in the new unified company, thereby triggering tax demands averaging £27,000.”

Wednesday 21 Sept 2005

By Michael Harrison, Business Editor

Published: 21 September 2005

The oil giant, Royal Dutch Shell, backed down yesterday in the face of protests over its financial unification from a group of UK private investors by announcing a new arrangement which will avoid them incurring tax bills running into tens of thousands of pounds.

However, the company was still criticised for coming up with the scheme too late to help hundreds of Royal Dutch shareholders who have already agreed to swap their old shares for ones in the new unified company, thereby triggering tax demands averaging £27,000. 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.

US Coast Guard joins huge post-Katrina operation to scoop up oil spills

Lloyds List: US Coast Guard joins huge post-Katrina operation to scoop up oil spills

Biggest operation at Cox Bay on Mississippi River recovers 1m gallons, writes Michael Grey: “More than 1m gallons of oil had also been discharged from Shell’s facility at Pilot Town in the Mississippi Delta, although some 718,000 gallons had been recovered and 105,000 evaporated or naturally dispersed.”

Wednesday Sept 21, 2005

A joint operation between the US Coast Guard and its state and industry partners to contain and recover oil spilt as a result of Hurricane Katrina is said to be making good progress on multiple spills throughout southern Louisiana.

Described as an ‘aggressive’ response under the unified command, the operations have seen skimmers, booms, recovery vehicles and vacuum trucks, along with response boats and other craft deployed at the multiple spills which range from small ones to multi-million gallon incidents. 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.

Royal Dutch Shell moves to round off unification

Stuff.co.nz (New Zealand): Royal Dutch Shell moves to round off unification

“Royal Dutch Shell unified its British and Dutch arms in July in a bid to restore confidence after a damaging reserves overbooking scandal last year…”

Wednesday 21 September 2005

LONDON: Major oil company Royal Dutch Shell has announced plans to buy out remaining shareholders in its old Royal Dutch arm, putting the finishing touches to the unification of its UK and Dutch arms in July.

Royal Dutch Shell, which holds around 98.5 per cent of Royal Dutch following its unification with Britain’s Shell Transport and Trading, said yesterday the minority shareholders would receive cash or, if they prefer and are UK residents, loan notes exchangeable into Royal Dutch A shares. 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.

Strengthen government links, says Jan Kopernicki, Shell VP

Lloyds List: Strengthen government links, says Kopernicki

“Jan Kopernicki, vice president of Shell International Trading and Shipping, launched his appeal on the opening day of IUMI after a year which has seen the European Union continue to set its own parameters for tightening measures against rogue shipowners and criminalisation of seafarers.”

Tuesday Sept 20, 2005

A CALL for governments and industry to work together to deal with the delicate questions of liability for disasters at sea came from a representative of one of the world’s leading shipping operators , writes James Brewer.

Jan Kopernicki, vice president of Shell International Trading and Shipping, launched his appeal on the opening day of IUMI after a year which has seen the European Union continue to set its own parameters for tightening measures against rogue shipowners and criminalisation of seafarers. 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.

Royal Dutch says to restructure subsidiaries

Reuters: Royal Dutch says to restructure subsidiaries

“The firm said the restructuring would require an extraordinary general meeting of shareholders and should be completed by the end of the year.”

Tuesday 20 Sept 2005

LONDON, Sept 20 (Reuters) – Oil major Royal Dutch Shell (RDSa.L: Quote, Profile, Research) said on Tuesday it was restructuring some subsidiary companies following the unification of its UK and Dutch arms.

As part of the restructuring, Royal Dutch will be merged into a subsidiary, Shell Petroleum NV, and the remaining shareholders in Royal Dutch will receive cash or, for UK resident shareholders if they prefer, loan notes exchangeable into Royal Dutch A shares.

The firm said the restructuring would require an extraordinary general meeting of shareholders and should be completed by the end of the year. 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.

Royal Dutch Shell to clear up Dutch holding company minorities

AFX News Limited: Royal Dutch Shell to clear up Dutch holding company minorities

Tuesday 20 Sept 2005

09.20.2005, 04:05 AM

LONDON (AFX) – Royal Dutch Shell Group announced details of its plan to clear up minority shareholdings in its former Dutch holding company, following the restructuring of the Anglo-Dutch oil giant.

It said that Royal Dutch Petroleum will be merged into a new subsidiary, Shell Petroleum NV. Remaining minority shareholders in Royal Dutch Petroleum, accounting for about 1.5 pct of its equity, will receive cash or loan notes exchangeable into Royal Dutch Shell A shares. 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.

BBC News: Shell buys out Dutch shareholders

Tuesday 20 Sept 2005

Oil giant Shell is planning to buy out remaining shareholders in its former Dutch holding company following the unification of its shares this year.

Shell holds about 98.5% of Royal Dutch following its unification with Shell Transport & Trading.

Remaining shareholders will receive cash or loan notes exchangeable for Royal Dutch ‘A’ shares.

Shell linked its UK and Dutch arms in a bid to restore confidence after a damaging reserves scandal last year.

The scandal was partly blamed on the complicated management and ownership structure. 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 company is of interest to Kazakhstan: PM

Kazinform (Kazakhstan): Shell company is of interest to Kazakhstan: PM

“Kazakhstan Prime Minister Daniyal Akhmetov has received Shell’s executive director for exploration and production Malcolm Brinded today…”

Tuesday 20 Sept 2005

ASTANA. September 20. KAZINFORM – Kazakhstan Prime Minister Daniyal Akhmetov has received Shell’s executive director for exploration and production Malcolm Brinded today, Kazinform has learnt from Government’s press-service.

The Prime Minister expressed satisfaction with the active participation of the company in the realization of different projects for development of hydrocarbons’ fields in Kazakhstan. As Daniyal Akhmetov noted, the collaboration with Shell company, possessing big experience and modern technologies, is of great interest for Kazakhstan. 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 considers launching BPO in Poland

Puls Biznesu (Poland): Shell considers launching BPO in Poland

Tuesday 20 Sept 2005

Warsaw (Puls Biznesu) – Shell, one of world’s largest fuel companies, considers a new investment in Poland. The company would like to launch a financial centre, “Puls Biznesu” learnt. “The centre will work for several units of Shell in other European countries. Several hundred people may work there. The centre may be launched next year”, Alfred Kubczak, Shell Polska spokesman said. It would be the company’s fifth BPO in the world. Krakow may be chosen as a site in Poland. 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 Tide Online (Nigeria): Shell pays $3.1bn as royalties, taxes

The Tide Online (Nigeria): Shell pays $3.1bn as royalties, taxes

“…the federal government is said to have received over 3.125 billion dollars from Shell Petroleum Development Company of Nigeria Limited as royalties, taxes and other levies in 2004”

Tuesday, September 20, 2005

Following higher crude oil prices and increased production, the federal government is said to have received over 3.125 billion dollars from Shell Petroleum Development Company of Nigeria Limited as royalties, taxes and other levies in 2004.

A breakdown of this figure shows that $2.2 billion was paid to the federal government as Petroleum Profit Tax in 2004, representing 83 per cent increase, $904 million as royalties, representing nearly 50 per cent increase, while $21 million was paid as its statutory contribution to the Niger Delta Development Commission (NDDC), in addition to Pay As You Earn (PAYE) tax paid to governments of states where staff are resident as well as education tax paid to federal government. 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.

Knight shows when it pays to say No

Financial Times: Mudlark: Knight shows when it pays to say No

“In the case of Shell, with a reputation to look after, it was inevitable that a face-saving solution would be found. It’s odd that Shell’s advisers, who were paid $115m (£64m), didn’t think of it earlier.”

Tuesday 20 Sept 2005

By Clay Harris

Published: September 20 2005

Angela Knight has been chief executive of the Association of Private Client Investment Managers since 1997, when she lost her seat as a Conservative MP and her ministerial role as economic secretary to the Treasury. Her victory on Tuesday on behalf of UK holders of Royal Dutch – although too late for those who had accepted the original offer – caps her highest-profile campaign.

Other of her causes have had broader impact. Knight returned on Tuesday from speaking at a Channel Islands conference about the impact of European regulation. But Shell was important to Knight because it epitomised the peripheral treatment of individual shareholders. 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.

Security Beefed Up Around Shell, LNG Pipelines

ThisDay Online (Nigeria): Security Beefed Up Around Shell, LNG Pipelines

“Following threats by some militant youth groups to blow up pipelines and other oil installations in the Niger Delta as a result of last Thursday’s arrest of Bayelsa State Governor, Chief Diepreye Alamieyeseigha in London for money laundering, government has increased security around oil facilities belonging to British Oil Company, Shell and LNG Nigeria Limited.”

Monday 19 Sept 2005

Alamieyeseigha not charged, says Bayelsa govt

From Chuks Okocha in Port Harcourt

Following threats by some militant youth groups to blow up pipelines and other oil installations in the Niger Delta as a result of last Thursday’s arrest of Bayelsa State Governor, Chief Diepreye Alamieyeseigha in London for money laundering, government has increased security around oil facilities belonging to British Oil Company, Shell and LNG Nigeria Limited.

But the Bayelsa State Commissioner of Information, Mr. Oronto Douglas at the weekend refuted claims that Alamieyeseigha has been charged before a court in London. He said the governor remains innocent until he is charged and proved guilty in a court. 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.

Philippine Daily Inquirer: Dutch firms said to be fearful of RP taxation

Philippine Daily Inquirer: Dutch firms said to be fearful of RP taxation

“THE PHILIPPINE GOVERNMENT WILL HAVE to resolve existing taxation issues involving the Shell Group of Companies here if it expects to see more Dutch companies investing in the country.”: “Shell Group country chair Edgar Chua said the oil refiner was still reviewing whether it should retain or eventually close down its refinery here.”

Monday Sept 19, 2005

THE PHILIPPINE GOVERNMENT WILL HAVE to resolve existing taxation issues involving the Shell Group of Companies here if it expects to see more Dutch companies investing in the country.

Ric Hettinga, the Royal Netherlands Embassy deputy chief of mission, said in a recent interview that the less obstacles to investing here, particularly with regard to taxation, the better chance there was of Dutch firms bringing their businesses into the Philippines.

“We will be happy if taxation would be such that Dutch companies can operate here,” Hettinga told reporters. 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.

Irish Times: Corrib campaigners leave for Norway

Irish Times: Corrib campaigners leave for Norway

“Supporters of the five Mayo men still imprisoned because of their opposition to the Corrib gas onshore pipeline leave for Norway today to visit members of the new Labour government and representatives of Statoil.”: “The men, nearing their 12th week in prison, agreed to a mediation offer by Shell last week.”

Monday Sept 19, 2005

Lorna Siggins, Marine Correspondent

Supporters of the five Mayo men still imprisoned because of their opposition to the Corrib gas onshore pipeline leave for Norway today to visit members of the new Labour government and representatives of Statoil.

Statoil, which is 71 per cent Norwegian state-owned, holds a 38 per cent share in the Corrib gas field, along with partners Shell and Marathon. The delegation, led by Mayo TD Dr Jerry Cowley (Ind), intends to highlight Norway’s role in the impasse. 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.

Going Dutch? For some shareholders it is a far from equitable split

Daily Telegraph: Personal view: Going Dutch? For some shareholders it is a far from equitable split

“There have been a number of less-than-ideal constructions and reconstructions recently where the smaller shareholder feels hard-done by. Take the case of Shell, or Royal Dutch Shell as it is now known, as a particularly harsh example. Following on from its failure to state its oil and gas reserves correctly, it has instigated many changes, of which one is the “reunification” of the company.”

Monday 19 Sept 2005

By Angela Knight (Filed: 19/09/2005)

The British buy shares in companies and always have, but the privatisation of companies such as British Telecom in the 1980s, and demutualisation of the Halifax Building Society and others in the 1990s widened share-holding dramatically.

Now, although our major plcs may be “owned” by institutional fund managers and the like, 12m individuals hold shares and in more than one company. These days the UK is both a property and a share-owning democracy. 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 Oil Firms, Prices May Ease Storm’s Blow

The Wall Street Journal: For Oil Firms, Prices May Ease Storm’s Blow

“Shell’s Mars field — which cost $1 billion in initial development costs — along with other fields that account for some 40% of its production in the Gulf, may be out of commission well into next year. Nearly two weeks after the storm, the company had restored a little more than a third of its 450,000 barrels of oil equivalent to a day of production, according to a Shell update last week.”

Monday 19 September 2005

Higher Margins Are Making Up
For Drop in Production Volume;
Many Are Still Assessing Damage

By CHIP CUMMINS in London and RUSSELL GOLD in Austin, Texas
Staff Reporters of THE WALL STREET JOURNAL
September 19, 2005; Page C1

The rigs, pipelines and refineries of most of the world’s largest publicly traded oil companies were hammered by Hurricane Katrina. But sorting out the storm’s impact on the energy industry’s bottom line isn’t as simple as tallying up the wreckage. 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.

Judgment day for new Shell boss as he faces the City

The Business: Judgment day for new Shell boss as he faces the City

“Hopes that the group would seal a gas deal in Libya by the time of the meeting appear to have been dashed. Shell’s lead negotiator in Libya last week told The Business that agreement had yet to be reached.”

By Richard Orange

19 Sept 04

THE City is increasing pressure on Royal Dutch/Shell to launch a complete overhaul of all its businesses at its strategy meeting on Wednesday – or risk a reversal in the recent recovery of its share price.

US bank Citigroup has called for the company to announce a programme to offload up to $8bn (£4.5bn, €6.6bn) of its oldest and least profitable oil production, even if this means a steeper fall in production levels.

The bank said: “Delivery of a convincing turnaround strategy would provide scope for a further re-rating of the shares; anything less would leave the shares vulnerable to profit-taking.” Analyst Jonathan Wright told The Business: “This is what the company needs to do to turn around its fortunes.” 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 Financial Express (Bangladesh): ‘It is back to being good entrepreneurs’

The Financial Express (Bangladesh): ‘It is back to being good entrepreneurs’

“Jeroen van der Veer, Royal Dutch Shell’s first chief executive, is used to skating on thin ice.”: “Shell suffered a severe setback recently when it revealed that its flagship Russian gas project, Sakhalin-2, would be at least eight months late and $10bn over budget.”: “another recent setback in Oman… the government transferred operation of one of its prize oil fields to a rival consortium…”

Sunday 18 September 2005

Thomas Catan

9/18/2005

Jeroen van der Veer, Royal Dutch Shell’s first chief executive, is used to skating on thin ice. The 57-year-old Dutchman has twice completed a 135-mile race along frozen canals through 11 cities in the Netherlands.

But even that cannot be as demanding as the task at hand — righting the third largest oil company following its reserves accounting crisis last year. The debacle spurred a boardroom purge, class-action lawsuits and a complete reorganisation of the company’s century-old governance structure. 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.

Irish Times: Shell denies fears over loss of consents

FROM OUR SHELL NEWS ARCHIVE: ON THIS DAY IN 2005

Irish Times: Shell denies fears over loss of consents

“It is 80 days since five sincere men of principle were jailed by Shell. Talks, not imprisonments, will resolve this impasse that has exposed the unhealthy state of our democracy.”

Posted Sunday 18 Sept 2005

Lorna Siggins, Marine Correspondent

Shell E&P Ireland has denied fears of losing ministerial consents for the 900 million gas project if it lifts the injunction against five Mayo men in prison over opposition to the onshore gas pipeline.

However, the company has issued a plea to the men in prison to “consider their position”, following its first formal offer to them this week of mediation without any preconditions.

The men have agreed to formal mediation, but their solicitor, Padraic Ferry, said yesterday this could only take place if the injunction was lifted, as otherwise the men would be under duress. 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.

Energy firms told to say what they pay to foreign regimes

The Independent on Sunday: Energy firms told to say what they pay to foreign regimes

“Some of the UK’s biggest charities will tomorrow demand that oil, gas and mining companies be forced to reveal details of payments they make to regimes in developing countries.”: “A spokesman for Shell added that the oil giant also supported a voluntary regime. He cited the work of the Shell subsidiary which voluntarily disclosed payments of $3.3bn (£1.8bn) to the Nigerian government in 2004.”: “Corruption is known as the curse of the extraction industry.”

Sunday 18 Sept 2005

By Gavin Hinks

Published: 18 September 2005

Some of the UK’s biggest charities will tomorrow demand that oil, gas and mining companies be forced to reveal details of payments they make to regimes in developing countries.

The charities, including Save the Children, Cafod, Global Witness and Transparency International, believe greater disclosure would make it easier to fight corruption among the governments that play host to companies such as BP and Shell.

Under the Publish What You Pay coalition, the charities will call for a new accounting rule that makes it mandatory for energy and mining groups to disclose all the payments they make on a country-by-country basis. They believe this would allow stakeholders in the developing world to see the level of income made from the big companies, and how much is lost through state 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.

Gazprom names 5 foreign firms for Arctic gas project

Reuters: Gazprom names 5 foreign firms for Arctic gas project

“The short list is a setback for supermajors Royal Dutch/Shell and Exxon Mobil, both of which are already involved in big projects off Russia’s Pacific coast.”

Posted Saturday 17 Sept 2005

Friday 16 September 2005

By Mikhail Yenukov

MOSCOW, Sept 16 (Reuters) – Russia’s Gazprom on Friday unveiled a short list of five foreign companies being considered as partners in a $20 billion Arctic gas project that could supply U.S. markets for half a century.

The firms, eyeing a slice of one of the most sought-after prizes in the energy sector, were named as Norway’s Statoil (STL.OL: Quote, Profile, Research) and Hydro (NHY.OL: Quote, Profile, Research), U.S. firms Chevron (CVX.N: Quote, Profile, Research) and ConocoPhillips (COP.N: Quote, Profile, Research), and France’s Total (TOTF.PA: Quote, Profile, Research). read more

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UPI: Shortlist unveiled for giant Gazprom field

UPI: Shortlist unveiled for giant Gazprom field

“Industry experts told United Press International Gazprom’s decision not to include Shell might have been attributed to the difficulties Shell encountered in implementing the Sakhalin-2 project, where cost overruns nearly doubled to some $20 billion while delays are expected to push back production.”

Posted Saturday 17 Sept 2005

By ANDREA R. MIHAILESCU

WASHINGTON, Sept. 16 (UPI) — Major U.S. oil and gas companies lobbied Russian President Vladimir Putin during his visit to New York as Gazprom named potential partners for the multibillion dollar Shtokman gas field project in the Barents Sea.

To invest in these projects, foreign companies must directly negotiate with the Kremlin.

“North America will be the main destination for gas supplies from the Shtokman deposit,” Chief Executive Officer Alexei Miller was quoted by RIA Novosti. read more

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Gazprom names candidates for Shtokman

Financial Times: Gazprom names candidates for Shtokman

“Gazprom would not say why it excluded Shell, with whom it has had a strategic alliance for almost a decade, but industry observers suggested tensions over Sakhalin 2, Shell’s LNG project off Russia’s east coast, may have contributed.”: “This summer Gazprom agreed to swap 50 per cent of its Siberian gas field, Zapolyarnoye, for a 25 per cent stake in Sakhalin 2. But less than a week later, Shell raised the cost of Sakhalin 2 from $12bn to $20bn.”: “Shell, looking to replenish oil and gas stocks after last year’s reserves overbooking scandal, was “disappointed not to have been selected.”

Saturday 17 Sept 2005

By Arkady Ostrovsky in Moscow and James Boxellin London

Published: September 17 2005

Gazprom, the Russian gas monopoly, has named a shortlist of five foreign companies as potential partners to develop the giant Shtokman gas field in the Barents Sea, one of the world’s biggest and most challenging energy projects.

The companies competing for a slice of the $20bn liquefied natural gas project, which aims to supply the US, are ChevronTexaco and ConocoPhillips of the US, Statoil and Norsk Hydro of Norway and Total of France. ExxonMobil and Royal Dutch Shell, two of the biggest energy groups, failed to make the shortlist. read more

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Gazprom excludes Shell from list of field developers

The Times (UK): Gazprom excludes Shell from list of field developers

“Shell’s exclusion will be a keen disappointment to the multinational. The Dutch company had originally hoped that an asset swap agreement with Gazprom earlier this year in which Shell gave Gazprom a 25 per cent share of Sakhalin, an LNG project in Eastern Siberia, would open the door to a stake in Shtokman. Only days later, Shell was forced to announce that costs had doubled at Sakhalin, forcing the company into new negotiations with Gazprom. “Shell has blotted its copybook with Gazprom…”

Saturday 17 Sept 2005

By Carl Mortished, International Business Editor

SHELL and ExxonMobil have been excluded from the development of Shtokman, a Russian offshore gasfield with enough reserves to keep Britain supplied for 17 years.

The shortlist of eligible partners, announced yesterday by Alexei Miller, the chairman of Gazprom, comprises the Norwegian energy companies Statoil and Norsk Hydro, two American firms, Chevron and ConocoPhillips, and Total of France.

Competition is intense for a share in one of the world’s biggest gas reserves which is earmarked for export to the United States. More than a dozen companies submitted bids for Gazprom’s first venture offshore, a vast project in difficult Arctic conditions that could cost about $20 billion (£11 billion). read more

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Geelong Advertiser (Australia): Shell shocked by pier critics

Geelong Advertiser (Australia): Shell shocked by pier critics

“SHELL’S Geelong refinery has described recent criticism of its environmental record as “scaremongering”.

Saturday 17 Sept 2005

Geoff Ellison

Saturday, September 17

Peter Begg

SHELL’S Geelong refinery has described recent criticism of its environmental record as “scaremongering”.

Shell found itself caught in the crossfire in the past month as the state planning tribunal heard arguments for and against the storage of butadiene at terminals, next to the Refinery Pier.

Documents tabled at the tribunal accused Shell of dropping the ball, with claims questioning levels of benzene in the area, and more recently the danger of ships hitting the Refinery Pier. read more

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REUTERS: Displaced workers settle in at Shell oil terminal

REUTERS: Displaced workers settle in at Shell oil terminal

Sewer and water lines are being laid to be connected to trailers provided by Federal Emergency Management Agency (FEMA) for workers at the Shell Sugarland facility in St. James, Louisiana, September 15, 2005. FEMA is providing 165 trailers for workers and their families displaced by Hurricane Katrina at a community they’ve named Sugarville.

Friday 16 Sep 2005

By Ben Berkowitz

ST. JAMES, La., Sept 15 (Reuters) – Compared with many others forced from their homes by Hurricane Katrina, residents of Sugarville have comfortable new houses, complete with amenities like soft beds, DVD players and full refrigerators.

Of course, “Sugarville” is actually a huge dirt lot on the grounds of the Royal Dutch ShellSugarland Terminal in this southeastern Louisiana town. The “houses” are Fleetwood Enterprisestrailers supplied by the Federal Emergency Management Agency to house oil workers and their families displaced by the storm that devastated the U.S. Gulf Coast. read more

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JAPANESE TO BOOST INVESTMENTS IN SAKHALIN-2 PROJECT

Novye Izvestia: JAPANESE TO BOOST INVESTMENTS IN SAKHALIN-2 PROJECT

“Concern deputy head Alexander Medvedev stated that greater expenditure on Sakhalin-2 would lower the cost of the asset contributed by Royal Dutch/Shell. Nevertheless, Gazprom is likely to take part in Sakhalin-2. “The agreement with Royal Dutch/Shell contains a clause which provides for compensation in such a case,” a source in Gazprom said yesterday. This may be both financial resources and additional assets, he claims.”

Friday 16 Sept 2005

Mitsubishi and Mitsui, the Japanese shareholders of the Sakhalin-2 project, have agreed to the proposal made by their partner, Royal Dutch/Shell, to increase investments in the project from $12 billion to $20 billion. Russian executives were informed of this yesterday. Gazprom, which intends to become a participant in this project, is not pleased about the British-Dutch initiative.

Royal Dutch/Shell owns 55% of shares in the Sakhalin Energy joint venture – the operator of the Sakhalin-2 project. The gas monopoly wanted to buy a block of shares in Sakhalin Energy, paying 50% of its cost in the project to develop the Neocomian reserves of the Zapolyarnoye gas and oil condensate field in West Siberia (total gas reserves – over 3.3 trillion cu m). read more

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Straight-talker ready to take risks

Financial Times: Straight-talker ready to take risks

“It was a move so daring that five years later Mr Desmarest was seen – until last week when he ruled it out – as one of the only men capable of considering a bid for Royal/Dutch Shell, Total’s far bigger, yet distressed, rival.”

By Carola Hoyos in London

Published: September 15 2004

Thierry Desmarest, chair-man and chief executive of French oil group Total, occupies an enviable position among his peers. His company is not only returning vast amounts of cash to shareholders, but is also closing in on its bigger rivals by growing production at double the industry rate.

This has afforded the cerebral 49-year-old the ability to speak more frankly than most other oil executives about controversial issues facing an industry beset by activists and politicians. read more

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The New Industrial Gear Oil Range From Shell

theautochannel.com: Longer Life, Higher Performance: The New Industrial Gear Oil Range From Shell

Posted Friday 16 Sept 2005

LONDON, Sept. 15 — Shell lubricants companies have launched a revitalized range of mineral and synthetic industrial gear oils for the US market. Shell Omala, Shell Omala HD and Shell Tivela S gear oils, have been specially formulated to help prolong gear life and reduce unscheduled downtime, which can help industrial companies reduce their overall operating costs.

The revitalized range of Shell gear oils has been developed to meet the challenges placed on modern gear systems, which are becoming increasingly sophisticated, smaller and designed to run longer. In a recent survey conducted by Shell of US industrial companies, 50% of respondents said that industrial gearboxes were one of their most critical components, while 30% said that they had experienced a lubricant related gearbox failure within the last 12 months. read more

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Brunei Shell Petroleum Purchases Three Aircraft

ASIA PULSE: Brunei Shell Petroleum Purchases Three Aircraft

Thursday September 15 2005

SERIA, AsiaNet – Sikorsky Aircraft announced today that Brunei Shell Petroleum (BSP) has contracted to buy three S-92 helicopters for offshore oil service.

With this contract, BSP becomes the first oil company in Asia to select the S-92 for fleet operations. BSP and Sikorsky announced the deal in a signing ceremony here today at the Oil and Gas Discovery Centre before an audience of government officials, BSP representatives and other guests.

“We’re confident that the S-92 will provide BSP excellent performance, reliability, and safety operating in the challenging offshore environment of the South China Sea,” said Pete Saloomey, Sikorsky’s Regional Executive for Asia. read more

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‘Rossport Five’ supporters call for national rally

FROM OUR SEPT 2005 SHELL NEWS ARCHIVE

Ireland On-Line: ‘Rossport Five’ supporters call for national rally

“Supporters of the so-called Rossport Five, who were jailed 11 weeks ago over their protests against a controversial gas pipeline, are today calling for public support for a national rally demanding their release.”

Thursday 15 Sept 2005

Supporters of the so-called Rossport Five, who were jailed 11 weeks ago over their protests against a controversial gas pipeline, are today calling for public support for a national rally demanding their release.

The Shell to Sea campaign, which opposes the construction of the gas pipeline in Co Mayo by oil giant Shell, is launching the rally outside the company’s offices in Dublin.

The national demonstration and march to Leinster House will take place on October 1, and families and supporters are urging trade unions, community groups and political parties to join the rally. read more

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Murray walks out in Rossport protest

The Mayo News Online: Murray walks out in Rossport protest

“A proposal by the Charlestown-based councillor that Mayo County Council call on Shell to lift its injunction on the five Rossport men currently incarcerated at Cloverhill was deemed out of order as it was not on the agenda.”

Posted Thursday 15 Sept 2005

Report by Stephen O’Grady

SINN Féin councillor Gerry Murray withdrew from the chamber of Mayo County Council on Monday evening when party whips Paddy McGuinness and Pat McHugh declined his request to suspend standing orders to debate a motion he wished to table.

A proposal by the Charlestown-based councillor that Mayo County Council call on Shell to lift its injunction on the five Rossport men currently incarcerated at Cloverhill was deemed out of order as it was not on the agenda. read more

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Erris water in danger due to Corrib gas project 4

Western People: Erris water in danger due to Corrib gas project 4

Posted 15 Sept 2005

Mayo County Council has this week confirmed that Erris’ water supply is in danger due to untreated water on the Corrib gas development sites.

But protestors at Shell E&P Ireland’s compounds in Ballinaboy are still refusing to allow company and County Council personnel access to the sites. They want the matter to be dealt with by the Project Monitoring Committee.

Mayo Co Council wrote to SEPIL last Thursday, September 8 highlighting the danger to local waterways if environmental works are not carried out on ponds holding water containing tiny particles in suspension at the Bellenaboy gas terminal development site. read more

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Shell executive apologises to Dr Jerry Cowley

Western People (Ireland): Shell executive apologises to Dr Jerry Cowley

Posted Thursday 15 Sept 2005

A senior member of SEPIL management was forced to apologise to Mayo TD Dr Jerry Cowley last week. During an interview with Liamy McNally on Mid West radio last Thursday, Mark Carrigy, Operations Manager, Corrib Gas Project, was critical of Dr Jerry Cowley’s proposed visit to Norway.

Mr Carrigy labelled the Deputy’s travel plans as a junket and said Dr Cowley should not travel to Norway.

Dr Cowley went on air soon thereafter and asked Mr Carrigy to apologise for his comments. The TD told the Western People: “A junket implies that you are going off at someone else’s expense and having a high time for yourself.” read more

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Shell to decide next year on another petrochem project in Singapore – report

AFX Europe (Focus): Shell to decide next year on another petrochem project in Singapore – report

Royal Dutch Shell PLC chief executive Jeroen van der Veer said the company will decide next year whether to build another multi-billion dollar ethylene cracker in Singapore…”: “Shell has invested many billions of dollars in Singapore, and we are still not at the end of it,” he said.”

Thursday 15 Sept 2005

SINGAPORE (AFX) – Royal Dutch Shell PLC chief executive Jeroen van der Veer said the company will decide next year whether to build another multi-billion dollar ethylene cracker in Singapore, the Business Times reported.

“The cracker is a huge investment…We are doing a detailed study and expect to finish this by 2006, when we move to the final investment decision stage, which is the point of no return,” Van der Veer said.

“If we give the green light, we’ll start up the project three years after that,” he added. read more

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Reuters: Saudi, Shell mull Texas Port Arthur refinery expansion

Reuters: Saudi, Shell mull Texas refinery expansion

“With gasoline prices surging and refineries straining to meet demand, Saudi Arabia and oil giant Shell are mulling a plan to expand their joint venture refinery in Port Arthur, Texas…”

HOUSTON, Sept 14, 2005 (Reuters) – With gasoline prices surging and refineries straining to meet demand, Saudi Arabia and oil giant Shell are mulling a plan to expand their joint venture refinery in Port Arthur, Texas, state environmental regulators said on Wednesday.

“They have actually been in and talked to us about the requirements for a permit for Port Arthur,” said Terry Clawson, a spokesman for state regulatory body Texas Commission for Environmental Quality.

Energy newsletter Oil Daily reported earlier Wednesday that the joint venture company, Motiva Enterprises, planned to more than double the Port Arthur refinery’s capacity to 600,000 bpd at a cost of $3.2 billion. read more

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Black-Gold Rush in Alberta

The Wall Street Journal: Black-Gold Rush in Alberta

“Shell Canada Ltd., a unit of Royal Dutch Shell PLC, disclosed last month that it has boosted its cost projection for a proposed 100,000 barrel-a-day expansion of its Athabasca oil-sands mine by 80%, to 7.3 billion Canadian dollars (US$6.18 billion).”

With Price of Crude Staying High,
Tapping Into Canadian Oil Sands
Looks Increasingly Profitable

By TAMSIN CARLISLE
Staff Reporter of THE WALL STREET JOURNAL
September 15, 2005; Page C1

CALGARY, Alberta — By briefly blasting oil prices above $70 a barrel, Hurricane Katrina may have blown away any lingering doubts among oil producers about the long-term profitability of multibillion-dollar projects in the vast oil sands of this western Canadian province.

The supply disruptions caused by the hurricane also may stoke further U.S. interest in the oil sands as a stable, long-term supply source. read more

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At Time of Epic Storms, Oil Industry Thinks Anew

The New York Times: At Time of Epic Storms, Oil Industry Thinks Anew

“Shell said its output – which usually amounts to 450,000 barrels a day, or nearly a third of the gulf’s oil production – would be down 40 percent until next year.”

By JAD MOUAWAD
Published: September 15, 2005

Around the world, offshore oil and gas platforms are generally built to survive without serious damage a so-called 100-year storm – a hurricane so powerful that it typically occurs only once every hundred years.

Hurricane Ivan roared through the Gulf of Mexico a year ago, generating the highest waves ever recorded there in a storm considered likely to occur only once every 2,500 years. Given the scale of the hurricane, it was inevitable that it would wreak havoc in the gulf, America’s biggest energy-producing region, uprooting miles of underwater pipelines, destroying platforms and crimping production for months. read more

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Shell goes to court against cap

Pacific Business News: Shell goes to court against cap

“Shell filed court papers this week seeking independent review of Hawaii’s gas cap formula…”

Thursday 15 Sept 2005

Howard Dicus

Shell Oil Products US says the gas cap is “contentious and flawed” and is seeking reconsideration in the courts.

Shell filed court papers this week seeking independent review of Hawaii’s gas cap formula after unsuccessfully seeking reconsideration by the Public Utilities Commission.

“A true remedy be identified in order for consumers to get relief,” Shell spokesman Stanley Mays said Thursday. “Shell has complied with the law and will continue to do so. At the same time, the company is going to work within the law to get the price cap repealed.” read more

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Sakhalin-Shell JV submits new budget to Russian government

FROM OUR SEPT 2005 SHELL NEWS ARCHIVE

MarketWatch: Sakhalin-Shell JV submits new budget to Russian government

“In July, Anglo-Dutch oil giant Royal Dutch Shell PLC announced that the Sakhalin joint venture, in which it owns 55%, would see its costs double to $20 billion and would delay the delivery of liquefied gas by half a year.”

Thursday 15 Sept 2005

LONDON (MarketWatch) — A proposed fresh budget for the Sakhalin-Shell joint venture will be submitted to the Russian government later Thursday, a spokesman for the Russian oil and natural gas project said.

In July, Anglo-Dutch oil giant Royal Dutch Shell PLC (RDSB.LN) announced that the Sakhalin joint venture, in which it owns 55%, would see its costs double to $20 billion and would delay the delivery of liquefied gas by half a year.

Shell, along with other shareholders in the venture – Mitsui & Co. (8031.TO) with a 25% stake and Mitsubishi Corp. (8058.TO) with a 20% stake – approved the initial version of the budget in 2003. read more

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Shell and Motiva Account for All Employees Impacted By Hurricane Katrina

Yahoo Business News: Shell and Motiva Account for All Employees Impacted By Hurricane Katrina

Operations Restoration and Relief Efforts Move Forward

Posted Thursday 15 Sept 2005

HOUSTON, Sept. 14 /PRNewswire/ — Shell Oil Company and its joint venture, Motiva Enterprises LLC, have made contact with all of their nearly 4,600 employees in the hurricane-affected areas of Louisiana, Mississippi and Alabama.

“We are extremely grateful that all of our employees are safe,” said John Hofmeister, president of Shell Oil Company. “Now we can turn our undivided attention to helping our employees and others rebuild their lives as we restore our onshore and offshore Gulf Coast operations.” read more

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