The Sunday Times

November 1, 2009

The era of the oil industry mega merger is over, according to the chief executive of BP.

Tony Hayward said that there is “no industrial logic at all” to the type of big-ticket takeovers that transformed the industry a decade ago. The industry will be defined instead by partnerships between the big companies and the new generation of state-owned rivals and governments of resource-rich countries.

“We need access to new resources and we need access to new customers. Combining with another oil giant gives us neither,” he said in an interview with The Sunday Times. read more

LONDON (Dow Jones)--The Norwegian Petroleum Directorate Friday said a new well drilled at Ormen Lange indicates the gas field's resources could be lower than previously hoped.

BP was dealt a bitter blow last night when American regulators fined the oil group a record $87 million (£53 million) for more than 700 safety violations at the Texas refinery where an explosion killed 15 people and injured 170 in 2005.

HOUSTON, Oct 30 (Reuters) – Motiva Enterprises (RDSa.L) expects to finish the 325,000 barrel per day expansion of its 285,000 bpd refinery in Port Arthur, Texas, in the first quarter of 2012, CEO Robert Pease said Friday.

“We are seeing this through to completion,” Pease told a refining conference. “If you haven’t planned on a 325,000-barrel expansion in refining capacity, then pencil this in for the first quarter of 2012.”

(Reporting by Erwin Seba; Editing by Walter Bagley) read more

"A broader reorganization is now underway, and we expect a 10% headcount reduction in the redesigned divisions and functions, mostly in management and non-operational positions," Simon Henry, Shell's chief financial officer, said during a conference call yesterday. Henry said he cannot rule out further staff cuts in other divisions of the company.

Daily Mirror

By Clinton Manning 30/10/2009

Oil giant Shell is slashing 5,000 jobs after profits plunged 73%.

Uk staff are among those facing the chop as new boss Peter Voser imposes savage cuts.

Voser, just 121 days into the job, has already sacked 150 managers.

Now 15,000 staff in oil fields and head offices are being forced to reapply for their jobs, with rejects getting the boot by the end of the year.

Profits fell to £1.83-billion between July and September as it suffered from falling oil prices and the world recession. read more

From a Shell Insider

Email sent today to all Shell Stanlow Refinery employees from Frank Willsdon (right), General Manager: Stanlow, UK

Subject: Stanlow Strategic Review Announcement

Dear colleagues,

Further to the townhall meeting and team briefings held earlier today, I can confirm that we are in negotiations with Essar for the potential sale of Stanlow, Heide and Harburg refineries. For the time being Shell will not be holding discussions with any third party other than Essar, although this does not guarantee a sale and it is too early for Shell to confirm a deal or comment on timescales.

Given this latest development in the strategic review, we are now going to establish a UK staff consultation forum in readiness for consultation.    The Consultation Forum is being established for employees who may be affected by the potential sale of the Stanlow refinery and associated local marketing businesses – this includes some employees who are only partially impacted and may not be included in any transfer.  Electoral Reform Services (ERS) will be administering the process of nomination and election of the forum representatives on our behalf and will be contacting you in the coming days.  Those employees covered by the Collective Bargaining agreement in Stanlow will not be required to elect representatives as they will be nominated from within the current Shop Stewards committee and will not therefore receive the email from ERS. read more

About 20 civilians and two gardaí were hurt in the incident. The GSOC decision was referred to the Garda Commissioner last July. An ombudsman spokesman said yesterday it had not had notification on the outcome.

WASHINGTON -- Staff at the Securities and Exchange Commission Friday issued new guidance on how the agency interprets oil and natural gas companies' reserves accounting rules. The guidance, sought by industry for years, allows companies such as Royal Dutch Shell, ConocoPhillips and Chesapeake Energy Corp. to officially book major reserves that previously haven't been permitted by the SEC.

As part of the plan, 15,000 Shell employees have to re-apply for a smaller pool of jobs, leaving many in limbo until selections are made.

OSLO, Oct 30 (Reuters) - Royal Dutch Shell (RDSa.L) and its partners may be forced to cut their reserve estimates for Norway's giant Ormen Lange gas field, the Norwegian Oil Directorate said on Friday.

HOUSTON — An American whose secret recordings have placed him at the center of a $27 billion lawsuit against Chevron in Ecuador is a convicted drug trafficker, records show, throwing another complication into a case already tainted by accusations of bribery and espionage.

Fri Oct 30, 2009 4:12am EDT

OSLO, Oct 30 (Reuters) – Royal Dutch Shell (RDSa.L) has made a gas discovery at Norway’s Ormen Lange field, but there is renewed uncertainty about the field’s overall potential, the Norwegian Petroleum Directorate said on Friday.

“The result of this appraisal well will be incorporated into a major interpretation task aimed at providing a better resource estimate for the Ormen Lange field. It is uncertain whether the original upside potential can be realised,” the directorate said in a statement. Shell is the operator of production licence 209 with a 15 percent interest, with Norway’s StatoilHydro (STL.OL) holding a 40 percent interest, state-owned Petoro 35 percent and ExxonMobil (XOM.N) 10 percent. read more

Reuters syndicated article: “Shell ‘defers downstream IT investment’ – report“

Fri Oct 30, 2009 5:15am EDT

LONDON, Oct 30 (Reuters) – Royal Dutch Shell Plc (RDSa.L) (RDSb.L) is to delay investments in information technology systems at its downstream oil refining and fuel marketing unit to cut costs, a Shell protestors’ website said on Friday, citing a leaked internal email.

The Royaldutchshellplc.com website said U.S., Brazil, Argentina and Chile units would be affected.

No one at Shell was immediately available for comment.

(Reporting by Tom Bergin; Editing by Greg Mahlich) read more

Fri Oct 30, 2009 5:15am EDT

LONDON, Oct 30 (Reuters) – Royal Dutch Shell Plc (RDSa.L) (RDSb.L) is to delay investments in information technology systems at its downstream oil refining and fuel marketing unit to cut costs, a Shell protestors’ website said on Friday, citing a leaked internal email.

The Royaldutchshellplc.com website said U.S., Brazil, Argentina and Chile units would be affected.

No one at Shell was immediately available for comment.

(Reporting by Tom Bergin; Editing by Greg Mahlich) read more

The Herald

• Shell says that demand for oil will not recover quickly

Mark Williamson

Published on 30 Oct 2009

Royal Dutch Shell is set to shed up to 250 jobs in Aberdeen as part of a global cull of 5000 posts which it unveiled after announcing a big drop in third quarter profits on the back of falling oil prices.

Warning that global demand for oil would not recover quickly, the oil and gas giant said it would make the job cuts as the next stage of a drive initiated by new chief executive Peter Voser to boost profitability by simplifying the giant business.

This has already resulted in 150 out of 750 senior managers losing their jobs. read more

Morale is at an all time low, managers and supervisors are more focused on the fear of job stability than effective leadership. Many who have not been affected by the current staff reduction exercises are scared, and some are looking for a way out of Shell.

CURRENT SHELL INTERNAL EMAIL FROM ANDREW MANLEY, DOWNSTREAM-ONE PROGRAMME DIRECTOR

Re-phasing the Downstream-One Programme

This email has been sent to the Downstream Leadership Team, Programme Management Team, Programme staff including country Programme teams, Downstream-One IT, Implementation Council, Process Owners, Process Design Council, Operational Excellence teams, lead Process Focal Points, and Local Senior Downstream Representatives in countries live or to go live.

Dear Colleagues,

In the current environment it has been made clear to all of us that we have to manage our cash-flow very carefully and make tough decisions about allocation of resources. Indeed, Peter Voser has asked all the businesses to deliver tough top-down stretch targets on cost. read more

FAIRFAX, Va. -- As part of the ongoing transition of Shell and Motiva gas stations from direct- to wholesaler-supplied operations, Shell subsidiary Motiva Enterprises LLC sold 52 Shell-branded sites to PMG Northern Virginia LLC, a newly formed entity created by Fairfax, Va.-based Petroleum Marketing Group Inc.

From The Times
October 30, 2009

Hundreds of British managers to go as Shell steps up restructuring drive

Robin Pagnamenta Carl Mortished

More than 400 British managers in Royal Dutch Shell are facing the axe this Christmas as the oil giant intensifies a drastic restructuring drive.

Peter Voser, the new chief executive of the Anglo-Dutch group, announced yesterday that 5,000 jobs worldwide would be cut by the end of this year as the company reported a 73 per cent collapse in third-quarter profits from $10.9 billion (£6.6 billion) last year to $3 billion.

Shell, whose weak results contrasted with robust earnings reported by BP, its rival, on Tuesday, said that more than half the cuts in its Transition 2009 programme would fall in the UK, the US and the Netherlands. read more

LONDON, Oct 29 (Reuters) - Royal Dutch Shell Plc (RDSa.L) will fight any possible efforts by the Nigerian government to hand control of its Nigerian fields to Chinese oil companies, the Anglo-Dutch oil major's chief financial officer said on Thursday.

Royal Dutch Shell Plc said it will comply with international rulings on gasoline supplies to Iran as part of United Nations sanctions against the country over its nuclear program.

DAILY MAIL

By Daily Mail Reporter
Last updated at 10:12 AM on 29th October 2009

Oil giant Royal Dutch Shell today announced it was cutting 5,000 jobs as weaker oil prices and the ailing global economy saw profits plunge.

The Anglo-Dutch company reported a decrease in profits of 73 per cent to $2.99billion (£1.83billion) between July and September.

Chief executive Peter Voser said that despite some positive signs the outlook for the industry remained tenuous.

‘We see some indications that energy demand and pricing are improving, but the outlook remains very uncertain, and we are not expecting a quick recovery,’ he said. read more

AN EMAIL SENT TO SHELL CEO PETER VOSER FROM JOHN DONOVAN: 29 OCTOBER 2009 11.49 GMT

Dear Mr Voser

As well as being the operator of a well known Shell related website (royaldutchshellplc.com) I am also a long term Shell shareholder.

I received yesterday an email from a person closely associated with Shell providing a perspective on the changing mood of Shell staff arising from the restructuring. His comments struck me as being timely, genuine and well-informed. If correct, they are likely to be a cause for concern to you, your colleagues and Shell shareholders. read more

LONDON (Dow Jones)--Royal Dutch Shell PLC (RDSB.LN) will only have to top up its pension fund by around $5 billion, compared with previous expectations of $6-8 billion, because of the recovery in global equity markets, said Chief Financial Officer Simon Henry Thursday.

By WSJ Staff

• October 29, 2009, 4:49 AM ET

Royal Dutch Shell’s third quarter earnings, out this morning, are a “disappointment,” says Peter Hutton at NCB. “After BP’s slam dunk results, this is only a bit up….5% is a bit anemic,” referring to how much the company’s clean current cost of supplies beat consensus by. Shell’s third-quarter clean current cost of supplies was $2.62 billion, ahead of consensus forecasts of $2.5 billion. Hutton had expected $2.89 billion. BP beat consensus forecasts by 50%, he says.

“Our third-quarter results were affected by the weak global economy. Upstream and downstream profitability has been sharply reduced compared to year-ago levels,” said Shell Chief Executive Peter Voser. “We see some indications that energy demand and pricing are improving, but the outlook remains very uncertain, and we are not expecting a quick recovery.” read more

LONDON (Dow Jones)--Royal Dutch Shell PLC (RDSB.LN) shares fell 3.4% Thursday after the company posted a 67.6% fall in adjusted third-quarter profit on lower oil and gas prices, disappointing analysts by failing to beat modest expectations.

Adam Arnold, Sky News Online

Oil giant Royal Dutch Shell made profits of £1.8bn in the third quarter – down 73% on the same period last year.

Profits fall sharply compared with same period in 2008

The company has been hit by falling oil and gas prices.

Shell’s share price fell around 3% in early trading following the results.

Chief executive Peter Voser said there were indications that energy demand and prices were “improving”.

But he also said the “outlook remains very uncertain” and the company was not expecting a “quick recovery”.

He went on to say his restructuring programme was yielding results with operating costs lowered by £608m in the first nine months of 2009 and around 5,000 jobs cut. read more

Daily Telegraph

Royal Dutch Shell is “not expecting a quick recovery” after shedding 5,000 jobs in a global restructuring and seeing profits drop 73pc on lower oil and gas prices.

By Rowena Mason
Published: 7:59AM GMT 29 Oct 2009

Royal Dutch Shell B