FROM OUR JULY 2005 SHELL NEWS ARCHIVE…
THE TIMES: Shell failed to disclose spiralling costs in merger prospectus
SHELL failed to disclose in its merger prospectus the massive cost overruns at Sakhalin II, the Siberian gas project whose budget has doubled to $20 billion (£11.5 billion).
Thursday 21 July 2005
By Carl Mortished
SHELL failed to disclose in its merger prospectus the massive cost overruns at Sakhalin II, the Siberian gas project whose budget has doubled to $20 billion (£11.5 billion).
A Stock Exchange document published in late May lists Sakhalin as the largest Shell investment but gives no indication of the scale of the cost and scheduling troubles that have plagued the project since its launch in May 2003.
Last week Shell revealed that Sakhalin costs would be “of the order of $20 billion”. However, the listing particulars published on May 19 stated: “Overall investment in the Sakhalin II project is expected to be over $10 billion.”
Concern about cost and management issues at Shell depressed Royal Dutch Shell A shares, which slipped more than 3 per cent to 1766½p yesterday. Shell’s 55 per cent share of the Sakhalin cost overrun is equal to its first-quarter profit of $5.5 billion.
Listing particulars are published before the launch of new shares on the Stock Exchange. The Financial Services Authority would not comment on Shell’s listing particulars yesterday but said: “We expect figures to be accurate; that is the responsibility of the issuer.”
Jeroen van der Veer, Shell’s chief executive, said last Thursday that he had been made aware only the previous day of the new $20 billion cost figure for Sakhalin. Sources close to Shell indicate that an internal audit team was commissioned by Mr van der Veer late last year to investigate the mounting problems.
The ballooning costs were first reported as long ago as April last year, when The Times disclosed that the internal budget for the project had spiralled from $10 billion to $12 billion.
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 conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
MORE DETAILS:
A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
