September, 2006:

Reuters
26 September 2006
 
PARIS — France hopes Russia will allow energy company Total to continue with its production sharing agreement in Western Siberia, Foreign Minister Philippe Douste-Blazy said on Sunday.The Vremya Novostei newspaper on Friday quoted a source close to Russia’s Natural Resources Ministry as saying that it was only a matter of time before Total’s PSA (production sharing agreement) license for the Kharyaga project was withdrawn.

Asked whether France had received any guarantees, Douste-Blazy said: “To my knowledge no, but I really hope that the good relations between France and Russia translate very quickly into the possibility for Total to continue its whole program in Russia.” read more

26 Sep 2006 16:14:19 GMT
Source: Reuters
By Elif Kaban and Gleb Bryanski

MOSCOW, Sept 26 (Reuters) – Russia called a time-out on Tuesday in its campaign against environmental violations and cost overruns at Royal Dutch Shell’s Sakhalin-2 oil and gas project after strong criticism from foreign governments.

In an announcement likely to ease tension, Natural Resources Minister Yuri Trutnev said work on the giant offshore project in Russia’s Far East could continue while a full-scale ecological probe, due to start on Oct. 25 and last a month, is held. read more

26 Sept 2006

Russia has said it will delay halting Shell’s $20bn (£10.5bn) gas and oil project off of its Pacific coast while it conducts a new environmental study.

Natural Resources Minister Yuri Trutnev said the probe may take up to a month.

Russian authorities have threatened to revoke the project’s licence if concerns over its impact on the local environment are not addressed.

Analysts have suggested the move is a bargaining tool aimed at securing a Russian role in the Sakhalin 2 project. read more

26 September 2006

LONDON (AFX) – The European Bank for Reconstruction and Development, which should have given its decision on financing for the Shell-led Sakhalin-2 oil and gas project this summer, said that it would delay its decision while the Russian legal position remained unclear.

Current uncertainty over the project ‘does not allow the EBRD to progress’ over the matter, a spokeswoman for the bank told AFP.

Russia has threatened to halt the Sakhalin-2 oil and gas development project off Russia’s Pacific coast unless the Anglo-Dutch group Shell corrected environmental damage done to the site. read more

By Torrey Clark

Sept. 26 (Bloomberg) — Russia gave Royal Dutch Shell Plc almost a month to remedy violations at the $22 billion Sakhalin-2 oil and gas project, before the government decides whether to cancel a key permit for the development.

Shell must respond to government requests for proposals on fixing environmental and safety problems, Natural Resources Minister Yuri Trutnev said today in Moscow. His ministry yesterday started a review of Sakhalin-2 that will conclude on Oct. 20, after which it will decide whether Shell can finish building pipelines and a plant to liquefy natural gas. read more

By ALEX NICHOLSON AP Business Writer
© 2006 The Associated Press
26 September 2006

MOSCOW — Russian authorities will try to avoid shutting down a Shell-led liquefied gas project off the eastern island of Sakhalin, the natural resources minister said Tuesday. But the minister, Yuri Trutnev, warned that the project was riddled with serious environmental violations.

A final decision on whether to withdraw a key license at the Sakhalin-2 project will be made by the ministry within a month after experts from a state environmental safety watchdog complete an audit, Trutnev said. The auditors headed to the region Tuesday. read more

Tue Sep 26, 2006

MOSCOW, Sept 26 (Reuters) – The speaker of Russia’s upper house of parliament and the governor of Sakhalin island on Tuesday emphasised the economic rights of the Shell-led (RDSa.L: Quote, Profile, Research) Sakhalin-2 project, which has been under fire from Moscow.

Their comments offered encouragement to the oil and gas project after it came under attack from other Russian officials for doubling its costs to $20 billion and the Natural Resources Ministry ordered a major environmental investigation. read more

Wednesday 27 September 2006

THE British Government has raised concerns with Russian President Vladimir Putin over last week’s withdrawal of Shell’s permit to develop the £10 billion ($A25 billion) Sakhalin-2 energy project, suggesting the move could spark a diplomatic row.

Approval by the Russian Natural Resources Ministry for Shell’s liquefied natural gas project on Sakhalin Island, in the far east of Russia, was abruptly withdrawn last week on environmental grounds.

A spokesman for the British Prime Minister’s office said on Monday that “the Government is raising its concerns about the decision with the Russian Government. Downing Street is following this very closely”. read more

The Associated Press
Published: September 26, 2006
 
MOSCOW Russian authorities will try to avoid shutting down a Shell-led liquefied gas project off the far eastern island of Sakhalin, the natural resources minister said Tuesday.
 
But Yuri Trutnev warned that the project was riddled with serious environmental violations that need to be addressed so that it may continue.
 
A final decision on whether to withdraw a key license at the Sakhalin-2 will be made by the ministry within one month after experts from a state environmental safety watchdog complete their audit of the project, he said. The auditors headed to the region Tuesday.
 
“We must to everything possible to resolve this situation without stopping the project,” Trutnev said at a news conference. He added, however, that if environmental concerns aren’t properly addressed, the project will have to stop.
 
Trutnev’s ministry said last week that it would revoke the permit at Sakhalin-2 which is being developed by Sakhlain Energy, a consortium led by Shell.
 
Plans to revoke its environmental permit would freeze work for 17 months and lead to 15,000 lost jobs, said Igor Ignatyev, Sakhalin Energy’s vice president for corporate affairs.
 
“If it is signed, it will have irreversible effects,” Ignatyev said on Ekho Moskvy radio. “I have the sense that the people who take these steps don’t know what the legal consequences of this might be.”
 
Ignatyev said the decision, if confirmed, would lead to mass layoffs and would see 3,500 permits and licenses annulled. “It’s not the kind of exercise where you say ‘no today I canceled it, tomorrow I’ll sign it again.’ The consequences are very serious and irrevocable.”
 
Analysts have suggested the ministry’s move is a bargaining tool aimed at securing more favorable conditions for state gas monopoly Gazprom, which is in negotiations to join the project.
 
Ignatyev did not comment directly on that issue, but noted “there are a lot of coincidences.”
 
There has been pressure on a number of foreign-controlled energy projects that observers say is an attempt to secure a bigger role for Russian companies. read more

By STEFAN NICOLA
UPI Correspondent

BERLIN, Sept. 26 (UPI) — Russian President Vladimir Putin said Europe may be allowed to tap into one of Russia’s largest natural gas fields, an apparent move to soothe European concerns over energy security.

In a meeting with German Chancellor Angela Merkel and French President Jacques Chirac near Paris, Putin said the gas reserves at the bottom of the Barents Sea (the Shtokman field), could be made accessible to European customers.

Russia exports roughly 55 billion cubic meters of natural gas to Germany, with the Shtokman field able to bring another 25 billion to 45 billion cubic meters online, Putin said, according to the Frankfurter Allgemeine Zeitung newspaper. read more

13:48 Tuesday September 26th 2006 

Up to 100 protestors have blocked the entrance to the site of the proposed Corrib gas terminal in Co Mayo this morning.

The demonstrators prevented a group of construction workers from entering the land at Bellanaboy to resume work on the controversial facility.

Despite requests from Gardai, they refused to budge and the employees were eventually advised to leave.

Work on the Corrib terminal was due to restart this morning after being held up for a year due to the ongoing dispute over the pipeline bringing gas onshore from the Corrib field. read more

September 26, 2006
Posted to the web September 26, 2006
Crusoe Osagie, Lagos

Shell Petroleum Development Company of Nigeria (SPDC) yesterday stated that it was still battling to put out a fire ravaging its oil well in southern Rivers State, more than one month after.

The fire on Yorla Well -13, located in Ogoni communities, which was first reported on August 14, had further heightened the disagreement between the communities and Shell.
   
The company stated: “The Shell Petroleum Develop-ment Company of Nigeria wishes to reassure the neighbouring Ogoni communities, the Rivers State Government and the general public that it is doing everything possible to put out the fire on Yorla Well -13 in Rivers State. read more

By Fergal O’Brien

Sept. 26 (Bloomberg) — Protesters kept Royal Dutch Shell Plc, Europe’s second-largest oil company by market value, from resuming work on a gas terminal in western Ireland that’s already been delayed by more than a year.

Workers couldn’t go onto the site today because of a protest, Susan Shannon, a spokeswoman for Shell Exploration and Production Ireland, said by phone. Dublin-based broadcaster RTE said on its Web site about 100 people blocked the entrance to the terminal. A number of police officers are standing between the protesters and workers, it said. read more

Fyneface Aaron • Tuesday, Sep 26, 2006

The need to develop Oloibiri community in Ogbia Local Government Area of Bayelsa State is a debt that would continue to haunt successive Nigerian governments and the Shell Petroleum Development Company (SPDC).

Special adviser to the Bayelsa State Governor on Political Matters, Chief Asara O. Asara, made the declaration while presenting a keynote address during the opening of a two-day orientation programme organised by the Oloibiri Youth Congress to curb militancy in the area. read more

Tue Sep 26, 2006 12:23 PM BST

LONDON (Reuters) – Oil major Royal Dutch Shell has yet to receive official word of a full environmental probe of its $20 billion (10.5 billion pound) Sakhalin-2 project in Russia’s Far East and work is continuing, a Shell spokesman said on Tuesday.

The head of Russia’s environmental agency RosPrirodNadzor on Monday ordered a full investigation into the Shell-led project, sparking fears the Kremlin is seeking tighter control.

“To the best of my knowledge, there has been no official notification of this audit,” the Shell spokesman said. “Work is continuing as normal.” read more

Tuesday, 26 September 2006 
Áine Ryan
 
AFTER weeks of speculation, and an absence of over a year, Shell returned to work at the controversial Bellanaboy terminal site early yesterday (Tuesday) morning. A large gathering of protesters, from all over the county, was expected to assemble at the site from shortly after 5.30am.

Gardaí confirmed to The Mayo News on Monday morning that they received notification of Shell’s intention to recommence work at the proposed terminal site on Tuesday. Later in the afternoon, Shell confirmed their intentions. read more

Tuesday, 26 Sep 2006
 
A number of environmental obligations were violated in the oil and natural gas development project off Sakhalin island, according to the Russian foreign minister.

Sergei Lavrov said British-Dutch Shell and Japanese firms Mitsui and Mitsubishi caused erosion and problems in wastewater treatment at the Sakhalin-2 project.

The Russian natural resources ministry last week revoked permits for the $20 billion (£10.5 billion) project off the Pacific Ocean island of Sakhalin.

Speaking to journalists in New York, Mr Lavrov urged the Sakhalin-2 operator, Sakhalin Energy, led by Shell, to fulfil its obligations. read more

By Upstream staff

A group of 100 protestors has blocked the entrance to the site of the proposed onshore Corrib gas pipeline terminal at Bellanaboy, County Mayo, Irish media has reported.

State broadcaster RTE said the protestors prevented a group of construction workers from entering the site to resume work after an absence of a year.

The Shell to Sea group said it was determined to continue with the protest and was not prepared to allow the workers onto the site.

A Shell spokesman told RTE the company was disappointed that it had been prevented from getting 70 construction workers onto the site. read more

14:32 | 26/ 09/ 2006 

MOSCOW, September 26 (RIA Novosti) – Russia’s upper chamber of parliament ordered its committees Tuesday to examine the situation around the massive Sakhalin II energy project, off the country’s Pacific coast.

Environmentalists have consistently raised concerns over Sakhalin II, and the Ministry of Natural Resources annulled its approval of a 2003 environmental study of the project last Monday after prosecutors protested the original endorsement.

The move puts in jeopardy contracts with Japan, South Korea and the United States on deliveries of LNG, due to go into effect in 2008. read more

26 September 2006

By Upstream staff

Anglo-Dutch supermajor Shell has signed a deal with Turkey’s Calik Energy and Italy’s Eni on its possible participation in a key Turkish oil pipeline project, it said today.

The pipeline will carry oil between the Black Sea town of Samsun and the Turkish Mediterranean port of Ceyhan, bypassing the Bosphorus.

“This bypass project will reduce the heavy tanker traffic in the straits and will have the role of a sustainable export corridor for the delivery of crude from Russia and the Caspian region which is expected to keep increasing,” the statement said. read more

Sam Fleming,
26 September 2006

A price war erupted at petrol pumps and energy shares tumbled after the cost of oil plunged to a seven-month low. 

News of the early restoration of output at Alaska’s biggest field and hopes that sanctions against Iran will be avoided, sparked the tumble.

Oil has slumped by more than $17 a barrel since early August, its sharpest decline in more than 15 years.

Signs of a benign hurricane season in the Gulf of Mexico also helped push the cost of a barrel of Brent crude to $59.50 during the day. It later recovered to finish at $60.50. read more

By Upstream staff
26 September 2006

Western governments have overreacted to Russian concerns about a massive foreign energy project here because the legal basis for the development is not under question, a Kremlin source said today.

Moves by Moscow to strip the massive Shell-led Sakhalin 2 oil and gas project of its environmental permits and hostile moves towards other big oil projects led by BP and ExxonMobil have prompted an angry reaction from Western governments, Reuters reported.

Top officials from Britain, Japan and the Netherlands have expressed their strong displeasure. Diplomats here have vowed to “prevent another Yukos” – a reference to the Kremlin-led campaign which forced privately owned Russian oil company Yukos into bankruptcy and jailed its owner. read more

(Filed: 26/09/2006)

Legal

• BP’s Russian venture OAO TNK-BP was warned by prosecutors it could lose its permit to develop the $18bn Kovykta natural-gas field in Siberia over licence and environmental violations.

Energy

• The UK energy regulator proposes to allow the country’s natural-gas network operators to raise transportation charges by 9.7pc because of higher wholesale gas prices and pension costs for the grid operators.

• Royal Dutch Shell ‘s Sakhalin unit signed letters of intent, worth $100m each, with two service companies to work on an oil and gas project for which the Russian government may cancel a key permit. read more

EXTRACT: Since the end of July, the share price of Royal Dutch Shell has slumped by 11pc…

THE ARTICLE

(Filed: 26/09/2006)

As prices plunge to their lowest levels in months, the effects are being felt well beyond the trading floors, writes Tom Stevenson

Oil prices tumble over fears of US recession

If you were looking for a reason not to jump on the commodities bandwagon, you will have found it in the 23pc fall in the price of oil in the past six weeks. The unpredictable market in black gold is not for the faint of heart. read more

By Michael B. Marois

Sept. 25 (Bloomberg) — California Governor Arnold Schwarzenegger signed a law banning the state’s two public pension funds, with $350 billion in assets, from investing in companies that do business in Sudan.

The law prohibits the California Public Employees’ Retirement System, the largest U.S. public pension fund, the California State Teachers’ Retirement System, the second-largest fund, and the University of California Regents from investing in any company with active business operations in Sudan. The law also forbids the funds from investing in a company that supplies military equipment within the borders of Sudan. read more

Russia is under growing international pressure to explain its stance on the Sakhalin-2 energy project amid a political row about its development.

Russian officials have launched a full environmental review of the $20bn oil and gas scheme led by Shell, having withdrawn a key permit this month.

British, Dutch, Japanese and US officials have raised concerns about the project’s long-term prospects.

Critics say Moscow wants to muscle in on the strategically-important scheme.

Questions asked

Due to be finished in 2008, Sakhalin-2 will be the largest integrated oil and gas field in the world. read more

THE WALL STREET JOURNAL ONLINE
September 25, 2006 5:27 p.m.

After falling below $60 in early trading, crude-oil futures rebounded sharply, settling at $61.45 a barrel on the New York Mercantile Exchange, after the head of OPEC suggested the cartel could cut production to put a floor under prices, which have tumbled 20% since a mid-July peak. Here is Monday’s roundup of oil and energy news.

* * *
MERGER MONDAY: It was a busy day for deals in the energy sector. In the biggest, U.K. oil-and-gas explorer Tullow Oil agreed to buy Australia’s Hardman Resources for about $1.1 billion to boost its reserves, Bloomberg reports. New York’s Overseas Shipholding Group agreed to acquire rival crude-oil and petroleum-product shipping company Maritrans in a deal valued at $455 million. No word on whether Tampa, Fla.-based Maritrans’ ticker symbol, TUG, would survive the merger. Louisiana-based oilfield-services company Superior Energy Services said it agreed to buy Mississippi rival Warrior Energy Services for about $358 million in cash and stock. Warrior shares surged 69% on the news. read more

Reuters
 
PARIS — France hopes Russia will allow energy company Total to continue with its production sharing agreement in Western Siberia, Foreign Minister Philippe Douste-Blazy said on Sunday.The Vremya Novostei newspaper on Friday quoted a source close to Russia’s Natural Resources Ministry as saying that it was only a matter of time before Total’s PSA (production sharing agreement) license for the Kharyaga project was withdrawn.

Asked whether France had received any guarantees, Douste-Blazy said: “To my knowledge no, but I really hope that the good relations between France and Russia translate very quickly into the possibility for Total to continue its whole program in Russia.” read more

A. Hamzah, Contributor, Jakarta

“Pertamina calls on you to become a Pertamina gas station owner as a token of participation in national development.”

You may be puzzled by this call, which can be found on Pertamina’s website. Why does an oil company of Pertamina’s class link the retail gasoline business with nationalism when the government has given its blessing to the operation of foreign gas stations in Indonesia? Does it mean that in Pertamina’s view the government lacks nationalism? read more

By ROBERT COLLIER
Tuesday, September 26, 2006

El Tigre, Venezuela — On the hot, shrub-covered plains around this dusty, dingy town, an odd courtship is being carried out between the world’s most prominent revolutionary and the world’s biggest oil companies.

Just as there is no love between President Hugo Chavez and the Bush administration, there is little love lost between Chavez and the foreign oilmen who are pumping up the huge reservoirs of underground oil. But they need each other. The United States needs Venezuela to help quench its bottomless thirst for oil, and Chavez needs America to buy it from him in order to fund his dreams of spreading his leftist ideology around the hemisphere. read more

Terry Macalister and Tom Parfitt
Tuesday September 26, 2006

Western oil companies were in confusion about the investment climate in Russia last night after the government appeared to soften its position with Shell but opened a new line of attack against BP.

Yuri Trutnev, natural resources minister, said there would be a full inquiry into environmental problems at Shell’s $20bn Sakhalin-2 scheme but insisted the operating permit was safe – for now.

“There is no question of removing the licence because of the result of the investigations. The inspection should only examine whether the operator is abiding by the environmental protection legislation,” said Mr Trutnev. read more

By Arkady Ostrovsky in Moscow
Published: September 26 2006 01:38 | Last updated: September 26 2006 01:38

Russia had no intention of removing an operating licence from Royal Dutch Shell for Sakhalin 2, the world’s largest energy project, its minister of natural resources said yesterday.

Yuri Trutnev confirmed his ministry was planning to conduct a fresh investigation of Shell’s compliance with environmental regulations, but had no power over the project’s economic aspects.

Shell, the operator of Sakhalin 2, came under fire from Russian authorities after more than doubling the projected cost of the oil and gas project. Such a move would affect Russia’s profit from the venture. read more

Tuesday, September 26, 2006. Page 10.
By Konstantin Sonin
 
Two leading financial newspapers, the Financial Times and The Economist, wrote last week that the “environmental attack” on Shell, the main stakeholder in the Sakhalin-2 project, had been brought about by Russia’s desire to bring foreigners to the negotiating table. This was a logical conclusion.

Both newspapers also wrote that the government’s response was misguided, but here they missed the mark. Of course, both the method of initiating negotiations — using the Prosecutor General’s Office — and the decision to have Gazprom manage the state’s (future) share in the project are bad news. But the government’s intention is correct. The time has come to renegotiate its production sharing agreements. read more

25/09/2006 21:11 (Recasts paragraph 2, adds paragraphs 4-9)

MOSCOW, September 25 (RIA Novosti) – Russian prosecutors issued a warning Monday that a BP joint venture operating in East Siberia could have its license revoked if it fails to address environmental protection and other problems.

The Prosecutor General’s Office said Rusia Petroleum [RTS: PTRL], majority owned by Russian-British joint venture TNK-BP, had failed to comply with legislation on the use of natural resources and environmental protection, as well as with the terms of its license agreement on the development of the Kovykta gas field, in the Irkutsk Region. read more

Mon Sep 25, 2006 11:58am ET

HOUSTON, Sept 25 (Reuters) Shell Oil Co.’s 334,000 barrel per day joint-venture refinery in Deer Park, Texas, slowed de-coking operations on Sunday, according to a notice filed Monday with the state pollution regulation agency.

During de-coking operations, the coker released coke dust into the air, according to the notice filed with the Texas Commission on Environmental Quality.

A coker processes the gunky residue at the bottom of barrel of crude into refinable material or solid carbon chunks called petroleum coke that are sold as a replacement for coal. Periodically, cokers have to be cleared of carbon powder, which is called de-coking. read more

Shell are threatening to start work at the Bellinaboy site, where they intend to build a giant refinery to process Corrib gas onshore. There are daily pickets at the entrance to the site, and local people are adamant that the work can not be started without their consent.

In recent days there has been a noticeable increase in Garda activity in the vicinity. From before dawn this morning (Monday 25th) Gardaí have been filming the protesters and the area. A large number of crowd control barriers have been brought to Belmullet Garda station, and the garda barracks has recently taken delivery of FIVE police vans. read more

09/25/2006

Russia is strongly opposed to any politicization of economic issues that emerged during the implementation by foreign companies of the oil-and-gas project on Sakhalin Island, as Foreign Minister Sergei Lavrov said. He confirmed that Russia remained committed to its obligations and urged his country’s foreign partners to strictly observe the earlier reached agreements.

He said as much ahead of his participation in the international conference, “Oil and Gas from Sakhalin”, that will take place on Sakhalin Island from September 27th to 28th. read more

25.09.2006, 16.16 
 
TOKYO, September 25 – The Japan Gas Association’s chief Akio Nomura has expressed concern over the situation around the oil and gas project Sakhalin-2 that has been suspended because of incompliance with ecological standards.

A stop to the project would have serious consequences for Japan’s energy security, he told a news conference on Monday.

Nomura, who is also the head of Osaka Gas Corporation, said that four Japanese gas companies had signed contracts for buying liquefied natural gas under the Sakhalin-2 project beginning from 2008. read more

25.09.2006, 15.30

MOSCOW, September 25 (Itar-Tass) — The World Wildlife Fund has dismissed as “not convincing” speculations the mass death of fish and animals washed ashore in the Sakhalin Island’s Aniva Bay late last week was due to a storm.

“According to the Ecological Watch of Sakhalin there was no storm in the area on that day,” said WWF Director Igor Chestin. “Moreover, as hurricanes approach, fish and crabs usually move to greater depths. Monday’ s explanation by the Sakhalin Region natural resources committee to the effect the south wind, not typical of the region, caused massive death of sea animals looks not plausible.” read more

Last Update: 11:39 AM ET Sep 25, 2006

HOUSTON, Sept 25, 2006 /PRNewswire via COMTEX/ — To encourage middle and high school students’ interest in math and science, while introducing them to the world of energy, Shell Oil Company is launching a new educational website, “Energizing Your Future with Shell” at http://www.shell.com/us/energizeyourfuture.

In the energy industry, there is an anticipated shortage of technical workers due to the pending retirement of the baby boomers and the declining number of students pursuing technical careers. As part of a Workforce Development Initiative to increase the number of individuals in engineering, the geosciences and process technology, Shell created this online tool for teachers and students. read more

By Stephen Voss

Sept. 25 (Bloomberg) — Chevron Corp., the second-largest U.S. oil company, said it started a joint research project with the Los Alamos National Laboratory to study hydrocarbon reserves trapped in rock formations known as oil shales.

Oil shales are sedimentary rocks that contain a high proportion of organic matter that can be converted into crude oil or natural gas. The research will be based on formations in the Piceance Basin in Colorado and experiment with underground processing techniques that might mitigate greenhouse gas emissions, Chevron said in a statement. read more

September 25 2006

(Fortune) — Royal Dutch Shell (Charts) ranks no. 3 on FORTUNE’s Global 500 this year, with $306.7 billion in revenues, up 14.2% from the previous year.

The Hague, Netherlands-based company was ranked no. 4 on the 2005 list. Its 2005 profits were $25.3 billion, up 39.2% from a year earlier. 2005 was a banner year for most Global 500 companies.

It took $13.7 billion in revenue just to make this year’s list – up from $12.4 billion last year. And profits for the 500 companies jumped 30%. Total revenues for the Global 500 in 2006 add up to $18.9 trillion, a third of the world’s GDP. In the Petroleum Refining industry, profits were up 44% from the previous year. read more

Tigre, Venezuela — On the hot, shrub-covered plains around this dusty, dingy town, an odd courtship is being carried out between the world’s most prominent revolutionary and the world’s biggest oil companies.

Just as there is no love between President Hugo Chavez and the Bush administration, there is little love lost between Chavez and the foreign oilmen who are pumping up the huge reservoirs of underground oil. But they need each other. The United States needs Venezuela to help quench its bottomless thirst for oil, and Chavez needs America to buy it from him in order to fund his dreams of spreading his leftist ideology around the hemisphere. read more

By Julie Ziegler

Sept. 25 (Bloomberg) — Nigeria, Africa’s biggest oil producer, may revoke as many as 10 oil licenses for the Niger delta region and put them up for bid as part of a plan to increase development in the impoverished region.

Oil Minister Edmund Daukoru is reviewing recommendations to include 10 dormant oil licenses held by Royal Dutch Shell Plc, Chevron Corp., Exxon Mobil Corp. and a unit of Total SA, among others, said Tony Chukwueke, the head of the Department of Petroleum Resources. Preferential rights to those blocks might then be offered to other companies willing to invest in refineries and development, he said. read more

By Torrey Clark

Sept. 25 (Bloomberg) — Oleg Mitvol, the Russian official who is pushing to revoke Royal Dutch Shell Plc’s environmental permit for its Sakhalin-2 oil and gas project, will inspect the project this week for environmental damage.

Mitvol, the deputy head of the Natural Resources Ministry’s environmental inspectorate, will tour the project’s overland pipeline construction site by helicopter and meet with officials from Shell’s project operator, Sakhalin Energy, the ministry said in an e-mail today. read more

15:00 | 25/ 09/ 2006 

MOSCOW, September 25 (RIA Novosti) – Water tests near the site of the Sakhalin Energy project off Russia’s Pacific coast are expected this week after the discovery of mass fish deaths, a global environmental organization said Monday.

Dead crabs and fish appeared September 21-22 on a strip of 10 kilometers (6 miles) along the coast of the Sea of Okhotsk, where Shell-led Sakhalin Energy is building facilities for the massive Sakhalin-II oil project, the World Wildlife Fund in Russia said. read more

Sep. 25, 2006

Russia has found a new way to pressure the participants in Sakhalin 2. A complex audit by Rosprirodnadzor, the federal resources supervisory service, of the project begins today and may lead to stiff financial claims being made against the operator company, Sakhalin Energy, when it is finished.

Officials are making every assurance that the new tensions are related to the rising expenses for the project and are promising to make every effort to increase its financial attractiveness for the state. read more

Mon Sep 25, 2006 3:52 PM BST

MOSCOW (Reuters) – Russia’s environmental agency has ordered a full environmental investigation into the Shell-led Sakhalin-2 oil and gas project, the Natural Resources Ministry said in a statement on Monday.

But Natural Resources Minister Yuri Trutnev said the investigation should only cover environmental aspects of the $20 billion (10.5 billion pound) project in Russia’s far east and not interfere with the economics.

“There is no question of removing the licence because of the results of the investigation,” the statement quoted Trutnev as saying. read more

Published: September 25. 2006 3:00AM
Nation/World

Venezuela now tops U.S. in aid to Latin America

September 25, 2006
BY ROBERT COLLIER

CARACAS, Venezuela — He pops up almost everywhere — Africa, Asia, the Mideast, South America and at the United Nations last week, denouncing U.S. policy with revolutionary fervor.

Like a recurring bad dream for the Bush administration, Venezuelan President Hugo Chavez is molding himself into one of the world’s preeminent anti-American leaders.

Days before he addressed the United Nations — where he called President George W. Bush the devil — Chavez hosted Iranian President Mahmoud Ahmadinejad in Caracas. They signed more than 20 trade and investment deals, and Chavez said he would cut off oil supplies to the United States if there were a U.S. military attack on Iran. read more

25 September 2006

Dear Mr Van der Veer

I received an email from a Shell insider this morning containing a timely proposal which, although partly tongue-in-cheek, I believe actually has considerable merit in regard to resolving the Sakhalin II impasse. As you will see, it also has other advantages. I therefore thought it appropriate to bring this brainwave to your attention immediately. 

Here it is without further fanfare.

Email received from a Shell Insider 

Subject: Gazprom takeover? Why the hell not? read more