January 29th, 2007:

By Davidson Iriekpen, 01.30.2007
 
The Supreme Court has ordered Shell Trustees Limited (STL), a subsidiary of Shell Petroleum Development Company (SPDC), to pay a construction firm, Bill Construction Company Limited (BCCL), the sum of N6.6 billion in damages for a breach of contractual agreement between them.

Besides, three banks (First Bank of Nigeria, Platinum Habib Bank Plc and Intercontinental Bank) which had in custody N6,618,178,640.80 belonging to Shell were ordered to release same to the construction company. read more

By Ed Crooks in London
Published: January 29 2007 23:39 | Last updated: January 29 2007 23:39

The US authorities will “take a look at” a controversial agreement signed over the weekend by Royal Dutch Shell that could ultimately lead to a multi-billion dollar investment in Iran, a US State Department official said.

Shell and its partner Repsol of Spain have signed a service agreement, as reported in the Financial Times last week, with the Iranian government to continue work on developing blocks 13 and 14 of the giant South Pars gas field, in spite of mounting international pressure over the country’s nuclear programme. read more

Terry Macalister
Tuesday January 30, 2007

Shell has signed an important deal to help Iran develop a major gas field, ignorming growing pressure from George Bush to isolate the country for being part of what he alleges is an “axis of evil”.

The Anglo-Dutch group, which is struggling to bring more momentum to its business after being forced to hand over vital Russian reserves at Sakhalin island to the Kremlin, confirmed it had finally reached agreement on various aspects of its “Persian LNG” – liquefied natural gas – project centred on the South Pars gas field. read more

By Russell Hotten
Last Updated: 12:44am GMT 30/01/2007

Russia’s official environment agency is to review the operation of licences that allow TNK-BP to develop the giant Kovykta gas field, where Gazprom, the state-run energy company, is negotiating to become a partner.

Although the agency has not made recommendations about withdrawing the licences, the issue has echoes of the environmental crackdown on Shell over its Sakhalin-2 development.

Gazprom and Russian authorities have withheld approval of plans to build a gas pipeline from Kovykta to China, a move felt necessary to make development of the field economically viable. read more

By Russell Hotten
Last Updated: 12:44am GMT 30/01/2007

A proposed agreement between Royal Dutch Shell and Spain’s Repsol to help commercialise Iranian gas fields could trigger US sanctions, a senior Washington official warned last night.

On Sunday Iran signed a preliminary agreement with the two companies to produce liquefied natural gas from its South Pars field in a deal worth some $10bn (£5bn).

The United Nations, backed strongly by America, has imposed limited sanctions on Iran to stop it developing a nuclear programme. read more

Officials say they will likely review Shell’s deal with Spain’s Repsol to develop Iran’s biggest natural gas field.

January 29 2007: 5:41 PM EST

WASHINGTON (Reuters) — A preliminary multibillion-dollar deal to develop a giant Iranian natural gas field signed by Royal Dutch Shell would likely trigger a review by U.S. officials to see if it requires sanctions, a State Department official said on Monday.

Shell on Monday said it signed a deal with Iran in conjunction with Spain’s Repsol to develop South Pars, the OPEC member’s biggest natural gas field, despite growing U.S. pressure not to invest in Iran.
 
U.S. officials at some point would likely review the deal to see if sanctions should be triggered by the Iran-Libya Sanctions Act, State Department spokesman Sean McCormack told reporters at a press briefing. read more

DOW JONES NEWSWIRES
January 29, 2007 9:29 a.m.

HOUSTON — Tesoro Petroleum Corp. acquired Royal Dutch Shell PLC’s Los Angeles-area refinery for $1.63 billion, in a move to enhance its position as the leading West Coast refiner.

Tesoro Chief Executive Bruce Smith announced plans to acquire the 98,000 barrel a day refinery on Monday. The company acquired the refinery, located in Wilmington, Calif., as well as 250 gasoline stations from Shell. Additionally, Tesoro purchased 140 California gasoline stations from USA Petroleum. read more

Terry Macalister
Monday January 29, 2007

Shell has signed an important deal to help Iran develop a major gas field, ignoring growing pressure from George Bush to isolate the country for being part of what he alleges is an “axis of evil”.

The Anglo-Dutch group, which is struggling to bring more momentum to its business after being forced to hand over vital Russian reserves at Sakhalin island to the Kremlin, confirmed it had finally reached agreement on various aspects of its “Persian LNG” – liquefied natural gas – project centred on the South Pars gas field. read more

By Victor Epstein

Jan. 29 (Bloomberg) — Tesoro Corp., a Texas refiner, agreed to buy Royal Dutch Shell Plc’s refinery near Los Angeles and 140 filling stations for $1.63 billion, to lift its capacity to process low-cost crude and tap the largest U.S. fuel market.

The filling stations, located in Southern California, will continue to operate under the Shell brand, San Antonio-based Tesoro said today in a statement. Tesoro said it also agreed to buy 140 USA Petroleum filling stations, located mostly in California, and a fuel terminal in New Mexico for $277 million. read more

Message posted on Live Chat following announcement of Shell sale of assets in California as announced today, 29 January 2007.

guest_9321 : Shell’s sale of Californian downstream assets will avoid excessive concentration of downstream capacity in the event of a merger – BP is already No. 1 in California according to their website

This is the relevant information from BP’s U.S. website: California: We’re No. 1 in the state

With more than 6,000 employees involved in a variety of operations ranging from refining, making and distributing lubricants, to gasoline retail operations and solar energy, BP is proud to play an important role in addressing the diverse energy needs of the state of California. read more

Nicholas Neveling, Accountancy Age, 29 Jan 2007

Sakhalin to hit Shell reserves accounting

Shell may be forced to cut oil reserves by a billion barrels after halving stake in Sakhlin joint venture with Russian government.

Oil giant Shell is facing a a new accounting crisis as analysts predict that the oil group will have to cut oil reserves on its books by a billion barrels after the halving of its stake in the Sakhalin-2 joint venture.

Shell was forced to cede its majority stake in the Russian project to state-owned group Gazprom, the Observer reports. The Kremlin pressed Shell into the move and accused the group of environmental and cost mismanagement. read more

Royal Dutch Shell plc today welcomed the below announcement by Shell Oil Products US that it has signed an agreement to sells its Los Angeles Refinery and related assets to Tesoro:  

Houston – Jan. 29, 2007 – Shell Oil Products US announced today that it has signed agreements to sell its Los Angeles Refinery, Wilmington Products Terminal and approximately 250 retail sites and supply agreements in and around Los Angeles and San Diego to Tesoro Corporation. 

The proposed sale is part of Shell’s previously announced ongoing strategy to streamline and concentrate its Downstream portfolio. The transaction is expected to close in mid-year 2007, assuming all regulatory approvals are obtained and other conditions to closing are satisfied.  read more

EXTRACT: President Vladimir Putin has since made it clear that Russian companies will have a controlling stake in all major energy projects, a point driven home when Shell and its Japanese partners handed over a controlling stake in the Sakhalin-2 oil and gas project to Gazprom last month after prolonged state pressure.

THE ARTICLE

Monday, January 29, 2007. Page 1.
By Miriam Elder
Staff Writer

ESN, an investment firm with close links to Gazprom, stepped forward Friday as the first candidate to bid in the upcoming auctions for Yukos assets. read more

EXTRACT: “…it is likely that the report from Rosprirodnadzor will help Gazprom in its attempt to wrestle control of the company from TNK-BP. In Mr. Nesterov’s opinion, the situation will play out similarly to Sakhalin-2, in which the environmental oversight authorities ceased their attacks once Gazprom joined the project.”

THE ARTICLE

Gazprom and TNK-BP Will Continue to Haggle Over Field

Jan. 29, 2007

Last Thursday the Russian environmental oversight agency (Rosprirodnadzor) in Irkutsk Oblast completed its inspection of the degree to which the company RUSIA Petroleum, which is controlled by TNK-BP, is fulfilling the conditions of its license to exploit the Kovykta gas condensate field in the Irkutsk region. read more

Jan 29 2007
 
Oil giant Royal Dutch Shell will set another profits record when it posts full-year results on Thursday.

Soaring oil prices mean broker UBS expects a net income figure in the region of £12.22bn, which far exceeds Shell’s previous best of £11.67bn set last year.

But the performance in the fourth quarter, when profits are likely to be marginally lower, will carry the most interest for investors.

Oil prices have eased by 30% since hitting $77 in August, meaning Shell’s production record will be brought into focus. It is likely that output fell marginally in the year, following attacks on its production facilities in Nigeria. read more

Official Defends Supply Moves
As Russian Titan Tries to Polish Image
By MARC CHAMPION
January 29, 2007; Page A12

DAVOS, Switzerland — Two things anger Alexander Medvedev, the man in charge of Russian energy giant OAO Gazprom’s exports. One is being told the company isn’t doing enough to develop its natural-gas reserves. The other: that he has been shutting off supplies to Russia’s neighbors and Europe at the Kremlin’s bidding.

This year, Gazprom will spend $20 billion on development — double last year’s tally — Mr. Medvedev said during an interview at the World Economic Forum. More development spending will come as the company secures new long-term contracts with countries such as China, requiring new pipelines and extra production.
 
“Before producing gas, we should sell the gas,” said Gazprom’s deputy chief executive, responding to criticism from private investors and the Paris-based International Energy Agency that the company isn’t investing enough to meet spiraling global demand. “We know how much to invest to meet the demand.” read more

Monday 29 January 2007

Royal Dutch Shell and Spain’s gas and oil company Repsol have signed an initial agreement with Iran to assess the feasibility of producing liquified natural gas from the South Pars field, despite increasing pressure on western firms to refrain from investing in the country.

The deal is understood to be worth $10bn (£5bn), but a final decision on whether to develop the project is not due for a year.

Washington has barred US companies from investing in Iran because of accusations that Tehran is planning a nuclearbomb, and has called on other non-American firms to do the same. read more

29/01/2007

Royal Dutch Shell will post another full-year profits record thanks to soaring oil prices.

Broker UBS expects net income of about $24.06bn (£12.22bn), exceeding the group’s previous best of $22.94bn (£11.67bn) set last year. But the performance in the fourth quarter, when profits are likely to be marginally lower, will carry more interest for investors.

Oil prices have eased by 30pc since hitting $77 in August, meaning Shell’s production record will be in focus. Output may have fallen marginally in the year, after attacks on its production facilities in Nigeria. read more

Oil drilling damage
January 29, 2007 
 
As world energy needs soar, ravages by industries seeking fossil fuels are inescapable. West Virginia’s mountaintop removal mining is a well-known example.

Similarly, the February National Geographic paints a stark portrait of how Nigeria’s addiction to cash from oil kills environmental treasures and impoverishes native peoples.

Nigeria’s abundant oil resources might have made that West African nation a model of progress. With 130 million residents, Nigeria is Africa’s largest country. Its oil resources are greater than those of the United States and Mexico combined. Today, oil generates 95 percent of Nigeria’s export earnings. read more

Monday, January 29, 2007
Carl Mortished, International Business Editor
 
BP and Royal Dutch Shell face bruising encounters with shareholders over the next fortnight as the two European oil giants try to explain at strategy presentations why a year of record oil prices has failed to generate good investment returns.

Fund managers are shunning BP, Britain’s largest company, and its Dutch rival, turning up their noses at slipshod management, political risk and poor operational performance. Instead, they have chased ExxonMobil stock, lifting shares in the American company to extraordinary premiums over its European rivals. read more

Monday 29 January 2007 

TEHRAN: Iran said yesterday it had signed an initial deal worth $10 billion with Spain’s Repsol and Royal Dutch Shell to produce liquefied natural gas (LNG) from the South Pars gas field.

Gholamhossein Nozari, head of state-owned National Iranian Oil Company, was quoted by Iran’s student news agency as saying the deal would be worth $10bn and said a final investment decision was expected by the end of 2007.

An industry source close to the deal said the deal signed was an upstream service agreement. read more