January 24th, 2007:

Judy Monchuk

CALGARY (CP) – Shell Canada Ltd. (TSX:SHC), whose parent firm is attempting a full takeover of the Calgary based company, laid out its longterm vision for Alberta oilsands development Wednesday including increasing refining capacity to 700,000 barrels a day by 2020.

The oilsands blueprint also includes plans to increase bitumen production to 770,000 barrels a day from 500,000 a day.

Shell CEO Clive Mather said a steady stream of expansion projects are planned throughout northern Alberta, beyond those earlier outlined for the Athabasca oil sands project, in which Shell holds a 60 per cent interest. It includes expansion of the Jackpine mine and an additional mine, Pierre River, on the west side of the Athabasca River. read more

Shell Canada has even more ambitious oil sands expansion plans than it previously disclosed.

Thursday, January 25, 2007

The company said Wednesday that it intends to increase output from its oil sands mining and in-situ recovery projects in northern Alberta to 770,000 b/d and upgrading capacity to 700,000 b/d. This compares with earlier projections in the 500,000 b/d range by 2010. Shell Canada did not give a date for accomplishing the new goal, but it likely would be no sooner than 2015 (IOD Jan.24,p1). read more

Thursday, January 25, 2007. Issue 3582. Page 1.
By Andrew McChesney
Staff Writer  

Michael Probst / AP
The World Economic Forum got under way Wednesday in Davos, Switzerland.
 
DAVOS, Switzerland — In a sharp reversal from the past few years, a high-powered Kremlin delegation led by First Deputy Prime Minister Dmitry Medvedev is at Davos this week to make the case for investing — and trusting — in Russia.

The lone minister representing the government last year at the World Economic Forum’s annual meeting of political and business leaders high in the Swiss Alps was Economic Development and Trade Minister German Gref. But he skipped out on the Russia dinner that is a Friday evening tradition at the annual event. read more

By Vitaliy Katsenelson, CFA

Royal Dutch Shell’s $7.5 billion sale to Gazprom may have been coerced by the Russian government. Vitaliy Katsenelson looks at the Sakhalin-2 sale and examines the long-term implications if Russia disregards Western investment.

I can’t say I was surprised to see that Royal Dutch Shell (NYSE: RDS.A) will be “selling” 50% plus one share of the Sakhalin-2 project to Gazprom for $7.5 billion. Several months ago, the Russian government wanted to take Royal Dutch Shell to court because it was ruining the environment. I suppose when the Russian government referred to the environment, it meant the economic environment, not Mother Nature. read more

Thursday, January 25, 2007

Surprise, surprise: The Kremlin has accused another foreign oil major of “environmental” violations that just might lead to the renegotiation of a billion-dollar contract signed under the previous regime in Moscow. One day, Western investors may realize that the incredible returns in Russia may be too good to be true.

This time, France’s Total stands accused of ecological harm at the Kharyaga oil field, a project in the Arctic in which it owns a 50% stake. (Norway’s Norsk Hydro owns 40% of the venture, with the rest belonging to a smaller Russian firm.) read more

Crude-oil futures rose to a two-week high of more than $55 a barrel Wednesday, reversing losses amid signs OPEC members are complying more with production cuts and as traders reassessed U.S. government inventory data.

Here is Wednesday’s roundup of oil and energy news:

* * *
CONOCOPHILLIPS PROFIT FALLS: ConocoPhillips, kicking off the fourth-quarter earnings season for major U.S. oil companies at a time of moderating energy prices, posted a 13% drop in profit, reflecting lower oil and gas sales revenue and narrower refining and marketing margins. The third-largest U.S. oil company by market capitalization reported net income of $3.2 billion for the fourth quarter, down from $3.68 billion a year earlier. read more

24.01.2007, 17.34
 
YUZHNO SAKHALINSK, January 24 (Itar-Tass) — Russia’s Sakhalin region will extract 14.5 million tonnes of oil and four billion cubic metres of natural gas in 2007.

Oil extraction in the offshore fields in the Sea of Okhotsk and on the island will exceed last year’s volume by nine million tonnes, according to the regional committee on natural resources and environmental protection.

Committee spokesman Vladimir Ko said the Sakhalin-1 project would produce 10.3 million tonnes of oil, and Sakhalin-1 will give more than two million tonnes, and about 2.2 million tonnes will be lifted on the island. read more

Last Update: 2:19 PM ET Jan 23, 2007

ROME (MarketWatch) — Italy’s antitrust watchdog Tuesday said it has started a probe into possible price-fixing by nine oil companies, including Eni SpA (E) and the Italian units of Royal Dutch Shell PLC (RDSA), Total SA (TOT) and Exxon Mobil Corp. (XOM).

The regulator said the nine companies could have taken part since the end of 2004 in sharing information for the setting of gasoline prices in Italy’s service station network, limiting competition and keeping prices at the pump at one of the highest levels in the European Union. read more

January 24, 2007 – 07:27 a.m.
(AP) – The 10 highest cartel fines the EU has levied against companies for price fixing:

1. Hoffmann La Roche AG, vitamins cartel, 2001: euro462 million

2. Siemens AG, power gear cartel, 2007: euro396.5 million

3. Eni SpA, synthetic rubber cartel, under appeal, 2006: euro272.25 million

4. Lafarge SA, plasterboard cartel, under appeal, 2002: euro249.6 million

5. BASF AG, vitamins cartel, 2001, reduced on court appeal: euro236.8 million

6. Total SA’s chemical unit Arkema, acrylic glass cartel, 2006: euro219.13 million read more

Shell and Motiva Seek to Bring Greater Diversity to Shell-Branded Retail Network

HOUSTON, Jan. 24 /PRNewswire/ — Shell Oil Products US (Shell) and Motiva Enterprises LLC (Motiva) along with the National Urban League, one of the nation’s oldest and largest African American community based organizations, today announced a collaborative effort to increase minority opportunities in the Shell retail network. This gives Shell and Motiva access to the National Urban League’s extensive network of qualified minority candidates who are seeking opportunities in the retail fuels  industry. read more

Claudia Cattaneo And Sean Silcoff
Wednesday, January 24, 2007
 
Minority shareholders of Shell Canada Ltd. are considering holding talks directly with the company’s London-based parent to get a better takeout price for their shares, sources said yesterday.

Royal Dutch Shell PLC, the Anglo-Dutch oil giant, increased its bid yesterday by 13% — to $45 a share, or $8.7-billion, up from $40 a share, or $7.7-billion offered in October — to buy the 22% of Shell Canada it doesn’t own. read more

By: Orla Hearns

PROTESTORS against the Corrib gas project in Bellanaboy say they have been left in genuine fear following the unprecedented physical clashes with gardai at the terminal site last Friday.

But the claims have been dismissed by Supt Joseph Gannon, Belmullet, who said last Friday’s events were another publicity stunt by the Shell to Sea campaign and its supporters.

Brothers, Pat and Martin O’Donnell, were referred to Mayo General Hospital with injuries last Friday, January 19, following the incident near the Bellanaboy terminal site. read more

AFX CNF
Published: Jan 24, 2007

VELOSI SECURES EUROPEAN SHELL CONTRACT: The Velosi Group, a provider of quality assurance and quality control services to a number of major national and multinational oil and gas companies, is pleased to announce that it has been awarded the Shell EP Europe Inspection and Expediting contract for a duration of three years. In a competitive bid process Velosi has been awarded this exclusive contract, effective from 1 January 2007.

Shell Exploration and Production in the UK, Nederlandse Aardolie Maatschappij (NAM) in the Netherlands, Norske Shell in Norway and Enterprise Oil Ireland have recently combined to form one European company, Shell EP Europe. The contract will cover work stemming from all four of these Shell operations. Velosi was previously awarded a contract in May 2003 with Shell UK Exploration and Production covering work for the main Shell operating centre in Aberdeen. This contract expired on 31 December 2006, those services now being included in this new contract. “This contract is a significant expansion of the one we previously held with Shell UK,” said Dr Nabil Abdul Jalil, Chief Executive of Velosi. “It reflects well on the work we have done for Shell to date and on our ability to deliver cost effective solutions on a global basis. The continuation of our relationship with Shell in Europe is an excellent platform from which we can become involved in further opportunities with Shell globally.” read more

Bernardo V. Lopez,
Published: Jan 24, 2007

Parts 1 and 2 of this series tackled the American initiative through Dick Cheney and gang to “encircle” Russia by bringing its former satellites into the NATO fold to access its energy resources. Part 3 tackles Russia’s response, an expansion of energy pipelines to service Eurasian countries, and America’s counter-response of “nuclear primacy,” based on an article by William Engdahl.

Russia ingeniously offers bread as a win-win formula, but America sadly wants bullets as a win-lose formula. Whereas Russia is offering its energy resources to the world, America wants it all. The hawks in Washington will bring down the planet because of their greed for oil and gas. Armageddon will be a series of regional energy wars polarizing the world into two large camps, culminating in World War III. read more

Published: Jan 24, 2007

ROYAL DUTCH SHELL has raised its bid for the 22 per cent of Shell Canada it does not own to C$8.7 billion (GBP3.7 billion) from C$7.7 billion. The bid price was accepted by the Shell Canada board but some of its shareholders insisted it was worth C$9.6 billion.

By Andy Critchlow

Jan. 24 (Bloomberg) — Abu Dhabi and partners including Exxon Mobil Corp. and Royal Dutch Shell Plc. plan to boost output from five onshore oil fields by 600,000 barrels a day as it seeks to increase its share of world supply.

Abu Dhabi Company for Onshore Oil Operations is seeking bids from consultants to manage projects that will raise onshore output to 1.8 million barrels a day from five existing oil fields by 2011, according to a copy of tender documents.

The fields, located southwest of Abu Dhabi city, earmarked for expansion are Ruwais, Bida al-Qemzan, Bab Thamama G and Thamama 2, Qusahwira and North East Bab Phase 2, according to the tender sent to prospective bidders this month and forwarded to Bloomberg. read more

LONDON (AFX) – Roc Oil Company Ltd said results from its 3.25 pct-owned Chinguetti-18 development well in Mauritania are in line with expectations, and completion of drilling is scheduled for mid-February.

(Chinguetti (Woodside field – 34% Shell)

Published: Jan 24, 2007

Spain’s Repsol and Royal Dutch Shell expect to sign a preliminary deal with Iran in the coming days for a $4.3bn liquefied natural gas (LNG) plant and port terminal which would serve part of Iran’s South Pars gas field. A

deal would be a blow to Washington, which has barred US investment in Iran.

Published: Jan 24, 2007

2007 Catalyst Award Celebrates 20th Anniversary Recognizing Innovative Initiatives that Advance Women and Business

Catalyst Susan Nierenberg, 646-388-7744 [email protected] or Serena Fong, 646-388-7757 [email protected] or Adam Deitch, 646-388-7725 [email protected]

EXTRACT: The dinner is sponsored by Shell Oil Company, winner of the 2004 Catalyst Award for its cutting edge initiative, which changed the environment for women’s advancement and increased women’s representation at the senior and middle management levels. The dinner typically attracts more than 1,500 guests representing 260 companies and more than 75 CEOs and leaders of major corporations and firms. read more

Published: Jan 24, 2007

ITALY’S antitrust watchdog has opened a probe into possible price-fixing by nine oil companies, including Eni SpA and the Italian units of Royal Dutch Shell, Total SA and Exxon Mobil, the regulator said yesterday.

The nine companies could have been sharing information since the end of 2004 to set gasoline prices in the country’s service station network.

This had the effect of limiting competition and keeping prices at the pump at one of the highest levels in the European Union, the Italian Competition Authority said. read more

By Ed Crooksand Stephen Fidler
Published: January 24 2007 02:00 | Last updated: January 24 2007 02:00

Royal Dutch Shell is expected to sign an agreement on Saturday bringing it closer to a large investment in Iran, in spite of the threat of further pressure on the country over its nuclear programme.

A document seen by Expansión, the FT’s Spanish sister publication, suggests the agreement will be signed between Shell, Repsol of Spain and the Iranian government for a service contract on phases 13 and 14 of the South Pars gas field. read more

DAVID EBNER

CALGARY — Minority shareholders of Shell Canada Ltd. aren’t happy with an increased bid from majority owner Royal Dutch Shell PLC for the portion of the company it doesn’t own, even as the new $8.7-billion deal was endorsed yesterday by Shell Canada.

Several minority shareholders, accounting for about 20 per cent of the shares not owned by Royal Dutch, said they wouldn’t accept the new $45 offer, which was increased yesterday from a $40 bid last October — worth $7.7-billion — that was roundly panned by Shell Canada investors. read more

Wednesday, Jan 24, 2007

It is no longer news, the going, on in the Niger Delta but what continues to agitate the minds of many is, what the real and substantive issues are; the true picture of the happenings and why it seems difficult to reach a mutually acceptable agreement by all the stakeholders. In addressing these issues, I will raise some points, which in my opinion is relevant and germane to the Niger-Delta crises.

As a build up to that, it is necessary to refresh our minds with the fact that the violence in the region (between the local militants and government forces) is as a result of the cumulative effects of the criminal neglect and injustices that has remained the lot of the people of the Niger Delta. A careful look at the history of oil exploration in Nigeria reveals the soft underbelly that fuels crises in the oil rich region of Nigeria. read more

By Ed Crooks, Energy Editor
Published: January 24 2007 02:00 | Last updated: January 24 2007 02:00

Royal Dutch Shell has raised its offer for the minority shareholding in Shell Canada, its 78 per cent-owned subsidiary, reflecting determination to secure control over what it expects to be one of its most important areas for future growth.

The new offer is C$45 a share, up 12.5 per cent from C$40 originally offered in October last year.

It values the 22 per cent minority holding at C$8.7bn (£3.7bn), C$1bn more than the first bid. read more

By JEROEN van der VEER
The writer is chief executive of Royal Dutch Shell

Published: January 24 2007 02:00 | Last updated: January 24 2007 02:00

Systemic changes are needed in order to promote effective action to tackle carbon dioxide emissions. Society needs more energy as much as it needs better ways to reduce the negative environmental effects of its production and use. Governments have a crucial role in ensuring that consumers and industry respond effectively.

In order for market forces to work we (paradoxically) need more regulations. Governments must urgently provide the rules that can foster lower carbon dioxide emissions. These regulations must encourage both investment in new technologies and energy -conservation. read more

By IAN AUSTEN
Published: January 24, 2007

After an earlier offer received a cool reception from minority shareholders, Royal Dutch Shell increased its bid for the portion of Shell Canada it does not own to 45 Canadian dollars ($38.10) a share from 40 Canadian dollars.

The new offer values the 22 percent of Shell Canada not held by the parent company at 8.7 billion Canadian dollars ($7.4 billion). About 150,000 barrels of Shell Canada’s daily production of 230,000 barrels comes from oil sands projects in Alberta rather than conventional sources. read more

Nick Fletcher
Wednesday January 24, 2007

There was a late burst of excitement in gas group BG yesterday, up 11p to 662.5p, on vague rumours of a possible bid from BP, up 4p to 545p.

Some traders said BP’s soon to depart Lord Browne might see such a takeover as a fitting legacy, having apparently failed last year in an attempt to effect a merger with Shell. There were a few hefty trades going through for BG towards the end of the day but most dealers were sceptical of the tale.

Elsewhere a mixed bag of trading statements left the market struggling for direction, until a late rally from the miners came to the rescue. read more

By KRISTEN HAYS

Upcoming earnings reports for energy companies:

• ConocoPhillips: Today

• Exxon Mobil: Feb. 1

• Marathon: Feb. 1

• Shell: Feb. 1

• Chevron: Feb. 2

• BP: Feb. 6

Source: companies

High oil and natural gas prices fueled unprecedented profits for oil majors in 2005, and analysts expect lofty year-end figures for 2006 as well.

But industry observers expect that 2007 profits will fall below last year’s records in conjunction with lower oil and natural gas prices.

“All the companies will have higher earnings for the year 2006 over 2005. But the third quarter is the peak. That’s it. It’s downhill from there,” said Fadel Gheit, an oil analyst with Oppenheimer & Co. in New York. read more

EXTRACT: This fall, the debate over “An Inconvenient Truth” as an educational tool flared up when the National Science Teachers Association chose not to send its members free copies of the movie provided by the documentary’s producers. Critics attacked the decision and questioned the group’s acceptance of corporate funding, including donations from oil giants Exxon Mobil Corp. and Shell Oil Co.

THE ARTICLE

Wednesday, January 24, 2007
By LISA STIFFLER
P-I REPORTER

FEDERAL WAY — Global warming is no longer up for debate, asserted many parents and residents Tuesday night, challenging the Federal Way School Board’s restrictions on the showing of “An Inconvenient Truth.” read more

Posted: Wednesday, January 24, 2007
 
Madrid: Spain’s Repsol and Royal Dutch Shell expect to sign a preliminary deal with Iran in coming days for a $4.3 billion liquefied natural gas (LNG) plant and port terminal, a source close to the deal said.

Repsol and Shell hope to clinch a final agreement on the facilities, which would serve part of Iran’s South Pars gas field, by late this year or early in 2008, said the source, asking not to be named.

‘It’s not a done deal yet,’ said the source, who could not give a breakdown of how much of the deal would be for Repsol and how much for Shell. read more

Wed Jan 24, 2007 6:58 AM GMT
By Scott Haggett and Tom Bergin

CALGARY/LONDON (Reuters) – Royal Dutch Shell has raised its bid for the 22 percent of Shell Canada it does not already own to C$8.7 billion (3.7 billion pounds), an offer endorsed by Shell Canada’s board but already rejected by some big shareholders.

Royal Dutch Shell, the second-largest Western oil company by market capitalisation, said in a statement on Tuesday that it increased its offer by 13 percent to C$45 a share in cash from the C$40 it proposed last October. read more