‘Record’ profits likely to spark renewed calls for windfall taxes
Energy giant Shell is set to announce record annual net profits of more than £32.3billion at its results on Thursday, on the back of high gas and oil prices.
The bumper profits expected from Britain’s oil majors is likely to spark renewed calls for windfall taxes.
Howard Cox, founder of campaign group FairFuelUK, said action is needed from the Government to stop oil groups “ripping off motorists” and adding to the cost-of-living crisis.
He added: “In a time of huge inflation, striving so hard in order to fill up your essential car, van, or truck at a Shell garage, you can be comforted you have helped double this global oil
giant’s already mega profits.
“It is even more sickening that forecourts like Costco can sell petrol and diesel so much cheaper, 10p to 20p per litre less than Shell.read more
Shell announce new pensions measure as rising oil prices boost fortunes
Royal Dutch Shell has cheered pension funds and other investors by bringing forward plans to hand back billions. The global energy giant has announced the measure as the rising oil price boosts its fortunes. It plans to start returning 20 to 30 percent of its cash flow from operations to investors in dividend payments and share buybacks after its half-year results later this month, having cut its debts to £45billion.read more
Executives at the British-Dutch company were jubilant after reporting a £4.3billion surplus for the final quarter of last year. But critics pointed out that the “strong financial performance” came at the expense of millions of drivers. Campaigners are demanding a new watchdog for pump prices after they rose more than 11 percent year-on-year.
They pointed out that profits made by fuel retailers on every unit of petrol have rocketed by 60 percent to 13p per litre.
Howard Cox, founder of pressure group FairFuelUK, said: “Greedy oil companies continue to ride roughshod over hard-working, low income families and small businesses.read more
Crude slumped last week after a shock rise in US stockpiles, up 3.3million barrels to 513million, according to the Energy Information Administration (EIA).
Brent crude slipped to about $48 a barrel, its lowest level since December, and analysts said it could go sharply lower.
Crude dipped below $27 a barrel in January last year and Chris Beauchamp, chief market analyst at online trading platform IG, said a repeat of those levels is a distinct possibility: “Crude tends to overshoot on both the upside and the downside.”read more
By DAVID SHAND: PUBLISHED: 00:01, Wed, Feb 1, 2017
A “GENERATIONAL change” in North Sea oil and gas production was signalled yesterday after Shell sold a large chunk to private equity-backed exploration group Chrysaor in a £3billion deal.
The sale is part of Shell’s plans to dispose of £24billion of assets by 2018 to reduce its debts following its £35billion takeover of BG Group last year.
Major producers like Shell are also withdrawing from the North Sea to focus on higher profit areas such as Brazil. read more
PUBLISHED: 07:22, Wed, Nov 2, 2016 | UPDATED: 07:41, Wed, Nov 2, 2016
The FTSE 100 rivals warned investors not to expect a big upturn next year as they plan for prices in the low $50s-per barrel compared with current rates of about $48 for Brent.
But their efforts to balance investment in future growth while battling tough trading conditions and rising debt met with contrasting reactions as Shell’s share price rallied 84p to 2199p while BP slumped 21¾p to 462p.
Shell, whose £35billion acquisition of BG Group made it the world’s top liquefied natural gas producer, boosted underlying net profit for the three months to the end of September by 18 per cent to $2.8billion, compared with analysts’ forecasts of $1.71billion.read more
By DAVID SHAND: PUBLISHED: 00:03, Wed, Jun 8, 2016
The company set out its plans to create a “world class investment case” for shareholders following its £35billion takeover of fellow FTSE 100 oil and gas giant BG Group, which will include more asset sales and cost-cutting.
In its presentation to investors, Shell said it would squeeze an extra $1billion (£690million) in savings from the BG deal from an earlier $3.5billion forecast.
It aims to sell 10 per cent of its oil and gas production by exiting operations in up to 10 countries.read more
The move, announced yesterday, is a result of the firm’s £35billion merger with the BG Group and the prolonged slump in oil prices.
A total of 475 positions will be lost from the company’s UK and Ireland upstream business, which deals primarily with exploration, by the end of the year.
All job losses are expected to affect Scotland – home to around 2,200 Shell employees – with most coming from the firm’s Aberdeen headquarters. Around 40 offshore posts will be cut and there will also be losses at St Fergus Gas Terminal, in Aberdeenshire, and the firm’s plant at Mossmorran, in Fife.read more
BOSSES at Royal Dutch Shell will face shareholders at the group’s annual general meeting tomorrow amid concern over the chief executive’s “unacceptable” £4million pay deal.
Investors have been urged to vote against the firm’s remuneration report in protest at Ben van Beurden’s pay for 2015, even though it marked a significant reduction from the £18.6million he was paid in 2014 in the wake of plunging profits.
Shell’s latest annual report revealed boss Mr van Beurden’s total pay for last year was £4.3million – a 77 per cent fall on 2014 after the tumbling cost of crude took its toll on the group.read more
BG GROUP said it was in “excellent” shape ahead of a £35billion takeover by former rival Shell as it ramped up production and drove down costs in the face of sliding oil prices.
The FTSE 100 oil and gas group reported a surge in output in Australia and Brazil – key growth markets identified by Shell to justify the deal – beating its target to deliver a daily average of 704,000 barrels of oil per day last year, up 16 per cent on the previous year.
Volumes increased by 20 per cent in the fourth quarter.read more
Since the Anglo-Dutch oil giant unveiled its recommended takeover offer for BG last April, the price of crude oil has continued its descent and is now 41 per cent lower than when the deal was announced.
On Friday the price of Brent crude oil closed at $31.18 (£21.86).
The collapse in the price of oil has led a number of Shell’s key investors, such as Standard Life Investments, to question whether or not it should proceed.
Despite their concerns, a number of them also own shares in BG and are believed to be prepared to approve the deal, reasoning that the two firms would be stronger together.read more
With the price of oil languishing below $40 per barrel Ben van Beurden needs a miracle
With the price of oil languishing below $40 per barrel he requires prices to start rising in order to save his £47billion takeover of BG Group. When Van Beurden announced the deal in April, a number of Shell’s investors had doubts because of the valuations involved. Those doubts have since become full-blown fears, as the oil price has fallen through the floor.
To be fair to Shell, there is merit to the deal. BG will provide it with quality assets and enough free cash flow to reinforce its under-pressure dividend. It has also identified billions of cost savings. However, the takeover is predicated on the oil price being at $60 to $70 a barrel and the slump has completely changed the economics of the BG deal.read more
The price of crude oil has nearly halved over the past 12 months because of a Saudi Arabia-led effort by the Opec cartel to crush competition from US shale oil operators.
On Tuesday, BP is expected to say its third-quarter profits have slumped 57.5 per cent to $2.2billion (£1.4billion), with revenues down 47.6 per cent to $49.2billion (£31.9billion), even though analysts believe that its refining, processing and retail divisions have performed well.
On Thursday, arch rival Shell is also likely to produce a weak set of results. read more
Royal Dutch Shell chief executive Ben van Beurden will outline how the company plans to deal with the collapse in crude oil prices when he unveils its results on Thursday.
The oil giant is expected to reveal further cost-cutting measures alongside a 4.6 per cent fall in its 2014 pre-tax profits to $35 billion (£23.4 billion).
Earlier this month, Shell dropped a $6.5 billion (£4.3 billion) project in Qatar due to the impact of falling oil and gas prices.read more
In October of this year, just 9 weeks ago, when oil was at over $90 a barrel, Shell CEO Ben van Beurden expressed his confidence that oil would return to what he described as “very robust” pricing. He said that the oil price had been remarkably stable and that in the short term, Shell has a trading strategy to inoculate itself from the swings and “maybe even make money out of it.”
In view of the immediate subsequent slump in the oil price and the anticipated disastrous impact on Shell, he may now wish he had been less confident about the prospect of actually making money out of a downward swing. read more
DAILY EXPRESS: Oil giant Shell floats as prices sink
Extracts
ROYAL Dutch Shell unleashed an industry-beating rise in quarterly profit yesterday, despite falling oil prices, and vowed to keep slashing less-lucrative projects.
Finance chief Simon Henry said: “It’s quite likely we’ll take a very close look at investment levels where we have flexibility if we see oil price weakness persisting.”
Today we have another forecast from a Chief Executive of Royal Dutch Shell Plc, no doubt based on an assessment by the crystal ball gazers at Shell, the famed Scenarios team. Is it a case of wishful thinking on the part of Shell? Can we have faith in the prediction made by the current CEO?
By John Donovan
Today we have another forecast from a Chief Executive of Royal Dutch Shell Plc, no doubt based on an assessment by the crystal ball gazers at Shell, the famed Scenarios team.
According to Catherine Boyle of CNBC, Ben van Beurden, Shell’s current CEO is confident that oil will return to “very robust” pricing in the long-term.
This is despite the fact that as a result of increased production by Saudi Arabia and the USA, Brent crude dropped to less than $93 a barrel last week, the lowest price for two years. read more
Royal Dutch Shell is expected to report that its profits have slumped 38 per cent year on year to $4.6 billion (£2.7 billion), when it unveils its first-quarter results on Wednesday. As part of his turnaround plans van Beurden has pledged to improve cash flow and cut costs.
How much reliance can be placed on predictions emerging from Shell scenarios team? Very little if past accuracy of Shell predictions is any guide. Six years ago the then head of Royal Dutch Shell, the clueless Jeroen van der Veer predicted that the world would begin to run out of oil within 7 years – that’s next year. Since then, the whole outlook for oil and gas reserves has changed dramatically as a result of fracking and the US will surpass Saudi as the worlds top oil producer by 2016.
In Shell’s “tighter” supply scenarios, crude prices could steadily increase over the 20 next years, while still going through periods of volatility that could see Brent falling to $70 a barrel, Bentham said.
How much reliance can be placed on predictions emerging from Shell scenarios team?
Very little if past accuracy of Shell predictions is any guide. read more
Shell will report that its net earnings have fallen 25 per cent to £4.9 billion, due to its struggles with spills, theft and disruption at its Nigerian operations, as well as higher exploration costs and a weak refining and petrol market. “Unfortunately, ongoing issues in Nigeria, higher exploration charges, losses in Upstream Americas plus a weak downstream environment do not augur well,†Investec said.
BRITISH oil giants BP and Royal Dutch Shell are set to report plunging third-quarter profits this week, with both expected to say that they have been hit by weak refining margins and production outages, according to City analysts.
By: Helen Massy-Beresford
Aside from tougher market conditions, analysts believe BP’s Gulf of Mexico oil spill legal battles will weigh on its results expected on Tuesday. They predict increased US legal provisions will contribute to profits falling 37 per cent to £4.9 billion.Investec forecasts BP’s arch-rival Shell will report that its net earnings have fallen 25 per cent to £4.9 billion, due to its struggles with spills, theft and disruption at its Nigerian operations, as well as higher exploration costs and a weak refining and petrol market.
“Unfortunately, ongoing issues in Nigeria, higher exploration charges, losses in Upstream Americas plus a weak downstream environment do not augur well,†Investec said.
Deutsche Bank said challenges in Nigeria meant they viewed the quarter with “continuing trepidation†saying that in refining “Shell’s outsized footprint combined with the usual bout of unplanned downtime looks set to cost them dearly.â€
Resources exploration firm BG Group, which was part of British Gas owner Centrica until 1997, is expected to say on Thursday that its profits for the third quarter have fallen 20 per cent to £1.8 billion.read more
Royal Dutch Shell is likely to face questions over the future of its operations in China after sources claimed an £8.3bn project in the country had been quietly shelved. The cancellation of the project in the eastern city of Taizhou will raise doubts about Shell’s bold push into China and its partnership with CNPC. Shell has assiduously courted the state-owned giant, only to see CNPC swept up in a political purge which has seen at least five current or former executives investigated by the Communist party.
The news raises questions about Shell’s position in China Photo: GETTY
The tie-up with China National Petroleum Corp (CNPC), the country’s largest energy producer, and Qatar Petroleum to build a refinery and petrochemical plant is believed to have been suspended after losing political support.
The cancellation of the project in the eastern city of Taizhou will raise doubts about Shell’s bold push into China and its partnership with CNPC.
Shell has assiduously courted the state-owned giant, only to see CNPC swept up in a political purge which has seen at least five current or former executives investigated by the Communist party.read more
ROYAL DUTCH SHELL has shut down parts of a refinery in Port Arthur, Texas, after a fire broke out following a £6.4billion expansion scheme.
Shell closed units at the Motiva refinery, which is run by a joint venture of the oil giant and Saudi Refining, after the second blaze in a week is said to have started near the biggest of the plant’s three crude oil units.
The first attempt to start the unit, at the end of a five year upgrade of the refinery, was hampered by a chemical leak in June 2012.
The unit has been running at reduced rates since it began production early this year.
The company may shut the crude unit in the autumn of 2014 to fix the problems.read more
ROYAL DUTCH SHELL sprang another surprise on the City yesterday by naming its head of refining Ben van Beurden as its new chief executive to succeed Peter Voser next January.
Published: Wed, July 10, 2013
Dutchman Van Beurden, 55, who has been with the Anglo-Dutch oil giant for 30 years but only appointed to the board in January as boss of its downstream operations, had not been touted as a likely contender to replace Voser, whose decision to stand down after less than five years in the top job had stunned investors.
Analysts had focused on chief financial officer Simon Henry and other divisional heads including Marvin Odum and Andy Brown as potential successors, although Shell also reviewed outside candidates.read more
From our Shell News Archive Sunday 31 October, 2004
The fallout from the Shell reserves fraud continues…
The Independent On Sunday (UK): Business View: Shell’s real location problem is finding more black stuff: “The misreporting of reserves scandal showed all the worst Shell traits – secrecy, haughtiness, inertia.”: “So what’s the hurry? Was it because Shell had to admit that it had uncovered another 900 million barrels of doubtful crude in its reserves and was likely to uncover 600 million more?”
Sunday Express (UK): Shell boardroom changes backfire on reserves news: “ONE OF the world’s most influential financial firms has given the thumbs down to an announcement from Shell it is to end its 97-year-old dual board structure.”: “…financial ratings agency Standard & Poor’s said it had adjusted Shell’s investment rating downwards to “creditwatch negative”, a status which implies there may be more bad news to come from the company.”
Mail on Sunday (UK): Shell bosses in a charm offensive: “The Board, headed by Jeroen van der Veer, will see thousands of staff to explain the proposed changes and shore up the mood of the employees damaged by scandals over Shell’s inflated oil reserves.”: “Last week, Shell was forced to downgrade its estimates of proven oil reserves for the fifth time this year. Reserves are now a third lower than originally thought”read more
Friday 29 October, 2004 – A DREADFUL DAY FOR SHAREHOLDERS IN SHELL TRANSPORT AND TRADING COMPANY PLC
The Times (UK): The Hague for head office: “ALTHOUGH it maintains otherwise, Shell is effectively going Dutch…”: “From May, the big decisions will be taken by a new board in The Hague, which has seven Dutch members and only four Britons.”: “…from 2006 it will hold AGMs only in The Hague.”
The Times (UK): Fear of new Shell reserves downgrade: “ROYAL Dutch/Shell yesterday raised fears that it may have to write down its reserves by more than 1.5 billion barrels…”: “With less than 60 per cent of its reservoir audit completed, Shell was unable yesterday to put a ceiling on the potential downgrade of its reserves…”
Daily Telegraph (UK): Dutch chiefs take helm of merged Shell: “The radical move, which needs to be approved by shareholders, is likely to be seen as a Dutch takeover of the energy giant…”: “The news was overshadowed by yet more revelations about the company’s “proven” reserves…”read more
OIL giant BP is expected to return to profit this week when it reports its third-quarter results thanks to the rising oil price, while arch-rival Royal Dutch Shell is also set to announce improved profits.
BP is expected to make a net profit of $4 billion (£2.5 billion) for the three months to September 30, which would return it to profitability after registering a $1.3 billion loss in the preceding quarter. The oil giant will unveil its third-quarter results on Tuesday.
City analysts expect Royal Dutch Shell to report a net profit of $7.3bn, an increase of 79.7 per cent on the second quarter, when it announces its third-quarter results on Thursday.read more
Mr Campbell insisted it is only a matter of time before there is another major tragedy in the North Sea. He said: According to public domain data there were 85 gas releases and 443 dangerous occurrences last year. If you are getting 85 gas leaks thats one and a half, or two, leaks a week. The probability of an undesirable event is very high.
CLICK ON IMAGE TO ENLARGE
By John Donovan
The Sunday Express has today published an article under the headline: “Rusting rigs spark fears of oil tragedy” (above newspaper article) and “SCOTTISH OIL RIGS IN DIRE STRAITS” (online version).
The newspaper approached us for assistance and we were happy to supply extensive information, including the revealing letter we obtained from the Health & Safety Executive that is mentioned in the article.
We also put the Sunday Express journalist Paula Murray into contact with Bill Campbell, the retired HSE Group Auditor of Shell International to led the safety audit team on Shell North Sea platforms in 1999 which exposed a “Touch F*** All” maintenance culture with bodged repairs and falsified safety records. A more recent report (in 2008) by upstreamonline revealed that even the oil rig lifeboats were not seaworthy. read more
Shell is often at odds with institutional investors over the generous pay packages it gives to its executives, such as boss Peter Voser, who last year took home £4.6 million in pay and bonuses.
By Tracey Boles and Geoff Ho: Sunday May 15,2011
THE pay of top earners is spiralling out of control, a high-level report will warn tomorrow, as investors prepare to tackle three of Britains biggest companies over excessive remuneration.
The independent inquiry into high pay across both the public and private sectors, says that it is climbing at an alarming rate.
The High Pay Commission will also warn in its report, out tomorrow, that Britain is on course for levels of inequality not seen since Victorian times.read more
A DIP in production is expected to stop BP reaping the full benefit of the high oil price in its first-quarter results, out this week.
But arch-rival Royal Dutch Shell is forecast to enjoy a surge in first-quarter earnings on the back of the oil price which averaged $105 (£64) per barrel in the three-month period.
First-quarter profits at crisis-hit BP are expected to be broadly flat at $5.6 billion (£3.4 billion).
Analysts at Charles Stanley said: Production volumes could be some 7 per cent lower and as a result, BP will have less leverage from higher oil prices which are some 32 per cent higher than a year ago.read more
World demand for oil and gas will outstrip supply within seven years, according to Royal Dutch Shell.
The oil multinational is predicting that conventional supplies will not keep pace with soaring population growth and the rapid pace of economic development.
Jeroen van der Veer, Shell’s chief executive, said in an e-mail to the company’s staff this week that output of conventional oil and gas was close to peaking. He wrote: “Shell estimates that after 2015 supplies of easy-to-access oil and gas will no longer keep up with demand.”read more
Daily Express (UK): Boss in Shell scandal starts legal fightback
“… Watts’ counsel, David Pannick, claimed Watts could be easily identified by any “reasonable reader”. This was because the notice referred to Shell’s annual report, signed off by Watts, which contained false reserves statements, and to a Shell-commissioned report into the scandal, naming him among others. This had led to “contemptuous press coverage”.
Published by Daily Express 26 July 2005
By Andrew Johnson
SIR PHILIP WATTS, ousted as Shell’s boss in the oil reserves scandal, yesterday fired the opening shot against the Financial Services Authority in the fight to clear his name.
His lawyers told a preliminary hearing of the Financial Services and Markets Tribunal the City watchdog had infringed his rights by identifying him in a potentially damaging way when explaining why it had fined Shell £17million for market abuse. He should have been given an advance look at the notice to answer criticisms, they said.read more
Daily Express: Shell pays £52m to help settle reserves actions
Posted Tuesday 19 July 2005
By Andrew Johnson
Published 13 July 2005
SHELL is close to settling one of the three major class actions it was facing in the US in the wake of last year’s reserves scandal.
The Anglo-Dutch oil giant has agreed to pay, subject to court approval, $90 million (£52 million) to a clutch of pension funds run for its US staff.
It is the latest move by the group to draw a line under the affair which saw nearly 6 billion barrels wiped from its reserves which had been artificially inflated.read more
CHIEF EXECUTIVE Jeroen van der Veer is to beef up Shell’s science and technology work as part of moves to show there is life after the oil giant’s disastrous recent past.
Outlining where he would like the company to be in 1o years, van der Veer said innovation would play a crucial role in giving it a competitive edge.
The move comes ahead of the company’s annual meeting on Tuesday, when shareholders are expected to rubber-stamp a revamp of Shell’s three-board, two company structure to a single board and company.read more
AFX Europe (Focus): Russia’s Gazprom likely to join Sakhalin 2 gas/oil project – report: “Sakhalin Energy, a company based in Yzhno-Sakhalinsk, is promoting the project and is owned 55 pct by Royal Dutch/Shell Group, 25 pct by Mitsui & Co and 20 pct by Mitsubishi Corp.“ (ShellNews.net) 28 Nov 04
Daily Express (UK): Fresh oil reserves fears as Shell puts off Agm: “SCANDAL-STRUCK Shell sparked fears of yet further reserves downgrades by announcing it had been forced to put back the annual meeting which will determine the oil giant’s future.”: “The latest announcement inevitably fuelled speculation a further significant reserves downgrade was in the offing.”: “A criminal investigation and class actions are continuing in the United States.” (ShellNews.net) Posted 28 Nov 04read more
Daily Express (UK): FSA urges tribunal to reject Shell boss appeal
“The reserves crisis is being investigated by criminal authorities in the US, where Shell is facing civil actions for millions of pounds.”
19 Oct 2004
CITY watchdog the Financial Services Authority is urging an independent tribunal to dismiss an appeal by former Shell boss Sir Philip Watts.
It believes the Financial Services and Markets Tribunal should reject Watts’s claims that it identified him, in contravention of its own rules, when explaining the reasons for fining the oil giant £17 million over its reserves fiasco this year.
In a statement yesterday, the regulator said the tribunal should first decide whether Watts was “identified and prejudiced” when the fine was issued.read more
Daily Express: Training is the key to avoiding new fiasco: “SHELL has so far trained more than 2,000 staff to ensure the way they book future oil reserves will meet regulations laid down by the US watchdog, the Securities and Exchange Commission.”
Posted 24 Sept 04
SHELL has so far trained more than 2,000 staff to ensure the way they book future oil reserves will meet regulations laid down by the US watchdog, the Securities and Exchange Commission.
Exploration and production chief Malcolm Brinded said the group also planned to have more than 3,000 employees versed in SEC compliance tactics by the end of this month.
It was a failure to comply 1 with SEC guidelines, partly the result of slack internal and external controls, that led to the shock reserves downgrade earlier this year. The firm has also hired a series of external reserves auditors to ensure the debacle will not happen again.read more
Daily Express: Shell pumps in £25bn to restore reputation
By Andrew Johnson
Posted 24 Sept 04
OIL GIANT Shell is to step up investment by 20 per cent to $45billion (£25billion) for the next three years in a major shake-up designed to restore the group’s battered reputation.
More than $34billion has been earmarked for the group’s exploration and production arm, the division at the centre of the scandal which saw nearly 4.5 billion barrels wiped off the Anglo-Dutch oil giant’s reserves.
The focus is on bringing oil and gas fields on line and turning potential into production. However, $4.5billion will be spent searching for oil resources, an area in which Shell has under-invested until recently.read more
His deputy, Dutchman Walter van der Vijver, repeatedly warned him of the overstatement and finally exploded in an angry e-mail last November that he was “sick and tired of lying about the extent of our reserves”.
Published 28 August 2004
Company: Shell
Payoff: £1m
Anglo-Dutch oil giant Shell shocked stock markets in January by admitting that it had overstated its proven gas and oil reserves by more than 20 per cent, the equivalent of a mind-boggling 4.47 billion barrels. Shell, long considered a safe haven by private investors and pension funds, saw £3bn wiped off its share value in the subsequent furore. Almost everybody with a pension will have been hit by the fallout.
Chairman Watts initially claimed he first heard about the shortfall at the end of 2003 but it was later reported that he was warned about the dangers in February 2002. His deputy, Dutchman Walter van der Vijver, repeatedly warned him of the overstatement and finally exploded in an angry e-mail last November that he was “sick and tired of lying about the extent of our reserves”.read more
Sunday Express: Shell cuts back on forecourts to boost production
“managers hoped the new strategy would draw a line under the reserves-misreporting scandal which triggered the departure of three of Shell’s bosses earlier this year.”
By Robin Pagnamenta
22 August 04
SHELL is preparing to unveil a major long-term’ business strategy next month which insiders say will result in disposals and acquisitions.
The thrust of the Anglo-Dutch oil giant’s plan, to be revealed on September 22, will be to increase the company’s focus on long-term on exploration and production while reducing its retail presence, especially in mature markets.
Angus Mcphail, oil analyst at ING Financial Markets in Edinburgh, pointed out Shell had already begun taking steps in this direction. Last week, the group announced the sale of 900 petrol stations in Argentina. In recent months it has also disposed of hundreds of stations in Peru, Spain and Portugal. The cash raised will be used to fund oil and gas field acquisitions in Shell’s exploration and production division, the so-called “upstream” end of the business.read more
Daily Express: Shell faces takeover challenge from Total
“THE turmoil at Shell has triggered speculation that it could be vulnerable to a takeover or merger”
16 August 04
THE turmoil at Shell has triggered speculation that it could be vulnerable to a takeover or merger, with France’s Total tipped as a contender.
Shell has been rocked this year by revelations that its oil and gas reserves were 20 per cent lower than thought.
The crisis claimed the scalps of three senior executives^ including chairman Sir Philip Watts and the head of exploration Walter van de Vijver.
It has also raised questions about the independence of Shell which has remained on the sidelines while the industry has seen a wave of mergers and takeovers including Exxon’s purchase of Mobil.read more
Sunday Express: All’s well with Cairn in the Indian desert
It was an act of stupidity… You don’t sell off your golden eggs like that. Shell’s loss is Cairn’s gain.”: “Oil minnow’s £4m field is worth billions”
Oil minnow’s £4m field is worth billions, writes Robin Pagnamenta
15 August 2004
THE contrast between the fortunes of Shell and oil minnow Cairn Energy could not be starker. While Shell has been battling to soothe investor concerns about governance and its long-term supplies of oil and gas, Cairn has been moving from strength to strength.
Shares in the Edinburgh-based exploration company have soared since January when it revealed its 5,000 sq km field in India’s Rajasthan desert contained a major oil prospect.read more
SUNDAY EXPRESS: WHY SHELL MUST ACT NOW TO CALM TROUBLED WATERS
“But restructure may not be enough after scandal, resignation and fines, reports Robin Pagnamenta”
But restructure may not be enough after scandal, resignation and fines, reports Robin Pagnamenta
JEROEN VAN DE VEER smiled broadly in the cavernous interior of the New York Stock Exchange last week as he rang the opening bell for trading. The bespectacled Royal Dutch/Shell chairman was celebrating the 50th anniversary of the firm’s listing.
For perhaps the first time since his emergency appointment five months ago — after Sir Phil Watts was sacked after a misreported oil reserves scandal — van de Veer must have felt he was being feted rather than assaulted from all sides.read more
Daily Express: Shell scandal boss wins £2.5m payoff
“I am becoming sick and tired about lying about the extent of our reserves issues and the downward revisions that need to be done because of far too aggressive/optimistic bookings.”
By Andrew Johnson
THE former Shell exploration and production boss who admitted lying about the company’s reserves of oil has been awarded a pay-off worth €3.8 million (£2.5 million).
Walter van de Vijver will be given €1.9 million now and the rest after investigations into the scandal, depending on his co-operation with them and their results.
Van de Vijver and ex-chairman Sir Philip Watts stepped down from the Anglo-Dutch oil giant’s board “by mutual consent” in March after an internal inquiry into what eventually resulted in a 4.5 billion-barrel downgrade to the company’s reserves.read more
“HAPPY memories of Peter Sellers’ portrayal of the bumbling Inspector Clouseau”
STEPHEN KAHN
CITY EDITOR
13 August 2004
HAPPY memories of Peter Sellers’ portrayal of the bumbling Inspector Clouseau were brought to mind yesterday in Shell’s official response to talk that a merger of its British and Dutch companies is on the cards. This would be a much more radical step than simply to unify the two boards in its ongoing bid to pacify shareholders in the wake of the oil reserves scandal.
“Nothing’s being ruled in or ruled out,” said a spokesman for the troubled oil giant. In a cod French accent it would have been a turn of phrase worthy of the great detective himself.read more
Sunday Express: Shell tipped to join Baltic gas pipeline: “Shell is thought to be the most likely partner.”
By Robin Pagnamenta
8 August 2004
GAZPROM, the Russian energy giant, is seeking a UK partner for an ambitious multi-billion-pound plan to supply Siberian gas to western Europe via a pipeline across the Baltic Sea.
Gazprom is already understood to have approached Royal Dutch/Shell, BP and Centrica. Although no company has committed to the project, Shell is thought to be the most likely partner.
US investment bank Goldman Sachs is said to be advising on the deal, according to energy industry sources.
The pipeline is expected to cost up to $6 billion (£3.3 billion) and would involve the construction of a 1,875-mile link from northern Russia to Germany with offshoots to the UK, Finland and Sweden. Construction is unlikely to be completed before 2010.read more
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SHELL’S ROLE IN NIGERIAN OPL 245 BRIBERY SCANDAL
Whatever fig leaves they might be trying to use to hide the truth, Shell and Eni paid over $1bn to a company called Malabu for the OPL 245 licence. Even though the payment was channelled through the Nigerian government, it was clear that Shell knew that the ultimate beneficiary was Dan Etete, the former minister of petroleum. Etete is the owner of Malabu, to whom he awarded the licence when he was Nigerian Minister of Petroleum.
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.
MORE INFORMATION
Shell appeased and collaborated with the Nazis. The oil giant instructed its employees in the Netherlands to complete a form giving particulars about their descent, which for some, amounted to a self-declared death warrant. Shell used slave labor and was a close business partner in Germany of I.G. Farben, the notorious Nazi run chemical giant that also used slave labor and supplied the Zyklon-B gas used during the Holocaust to exterminate millions of people, including children. Shell continued the partnership with the Nazis in the years after the retirement of Sir Henri and even after his death. It was money generated on Shell forecourts around the world, profiteering from cartel oil prices, that funded the Nazi party and saved it from financial collapse. Evidence about Shell's Nazi connections can be found in extracts from "A History of Royal Dutch Shell" Volumes 1 and 2 authored by historians paid by Shell, who had unrestricted access to Shell archives. There are 67 pages in total, so takes some time to download.
Photograph (full size here) shows a Swastika flag flying at the head office of Royal Dutch Petroleum, 30 Carel van Bylandtlaan, The Hague, during the Nazi occupation of the in World War II (From Image Database Hague Municipal)
Sir Henri Deterding, the founder of the Royal Dutch Shell Group - known as "The Most Powerful Man in the World" - who became an ardent Nazi and financial supporter of Hitler and the Nazi party.
Reading between the lines in various legal documents, it seems that the allegations are that after the technology in question had been disclosed to a Shell company in the USA, the information was passed to Shell in the Netherlands in breach of confidentiality. And Royal Dutch Shell subsequently exploited the technology without payment or credit to the company holding the rights; Newton Research Partners. The inference seems to be that Twister B.V. was founded by Shell partly on trade secrets stolen from Bloom/Newton.
DISCLAIMER: This is not a Shell website nor is it officially endorsed by or affiliated with Royal Dutch Shell Plc. Originally co-founded by the late Alfred Donovan and his son John, it is now operated by John, Shell's "No.1 Enemy", aided by an expert team, with invaluable support from retired Shell senior executives and officials as guest contributors and leaked information from Shell insiders.
(JOHN DONOVAN, WEBSITE OWNER) For nearly a decade, we have operated globally under the Royal Dutch Shell Plc top level domain name, dealing on Shell’s reluctant behalf with job applications, business proposals, Shell pension enquiries, shareholder enquiries, complaints, invitations to speak at conferences, an approach from the Dutch Defence Ministry and even terrorist threats. All meant for Shell. Prospect magazine has aptly described this website as being:"An open wound for Shell": WIPO proceedings by Shell to seize the domain name failed. NO SUBSCRIPTION CHARGES: All of our watchdog activities monitoring Royal Dutch Shell, including operating this website, are carried out on a non-profit basis. Any advertising revenues generated are used to recover and/or defray operational costs. We are a news aggregator and original content website. All information is available free for educational and research purposes. SHELL TACIT ENDORSEMENT: WHAT A WELL INFORMED SHELL OFFICIAL SAID ABOUT US:
"John and Alfred Donovan well known in UK/Hague. They perceive Shell played them and so have made it their mission to embarrass,belittle and criticize Shell, which they do quite well. Their website, royaldutchshellplc.com is an excellent source of group news and comment and I recommend it far above what our own group internal comms puts out."
WARNING TO SHELL EMPLOYEES: Shell Global Affairs Security "CAS") is spying on Shell employees globally trying to trace who is visiting, posting, or leaking information to this website from Shell premises. Threats, including death threats, have allegedly been made against conscience driven Shell whistleblowers supplying us with information. The worlds biggest leak of employee details as part of a claimed corporate revolution by 116 Shell employees, suggest the espionage operation, threats and draconian litigation have not been entirely successful in cutting off the supply of information to this website. The insider leaks had already cost Shell billions on the Sakhalin Energy project and the loss of SEIC Deputy Chairman, David Greer. We publish our own carefully researched articles about Shell e.g. "How Royal Dutch Shell saved Hitler and the Nazi Party". MEDIA COVERAGE: Prospect Magazine, The Sunday Times, and The Guardian, have all published major articles about us: "Rise of the Gripe Site";"Two men and a website mount vendetta against Shell' and "92-year-old's website leaves oil giant Shell-shocked”. SHELL PETROL STATION images displayed in the website header panel are licensed under the GNU Free Documentation License.
COPYRIGHT NOTICE: Information on copyright issues here.
John Donovan can be contacted at [email protected]
SHELL’S $500,000 WEDDING GIFT TO CORRUPT BRUNEI ROYAL FAMILY
EXTRACT FROM ASIAN JOURNAL ARTICLE IN LIST OF LINKS BELOW: "Fireworks will light up the sky for three nights. The local unit of oil giant Royal Dutch Shell has donated 500,000 Brunei dollars (US$292,400; euro 243,700) for the display, and for cultural events to be hosted by popular performers from Malaysia."
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:
THIS IS WHAT IT SAID:
Subject: This could be the most important whistleblower email you have ever received.
Some unfortunate Royal Dutch Shell workers have already lost their lives. More lives are at stake.
My name is Bill Campbell. I am a former Group Auditor of Shell International. I am writing to you on a matter of conscience in an effort to avert the inevitability of another major accident in the North Sea. The consequences could potentially impact on families in many constituencies, including your own.
As Royal Dutch Shell and the Health & Safety Executive would acknowledge, I am an expert on safety matters relating to offshore oil and gas platforms. In 1999, I was appointed by Shell to lead a safety audit on the Brent Bravo platform. The audit revealed a platform management culture that basically gave a higher priority to production than the safety of Shell employees. To our astonishment we discovered that a "Touch F*** All" policy was in place. Worse still, safety records were routinely falsified and repairs bodged.
I personally brought the shocking situation to the attention of senior management including Malcolm Brinded, the then Managing Director of Shell Exploration & Production. I revealed that ESDV leak-off tests were purposely falsified, not once but many times and that Brent Bravo platform management had admitted responsibility for the dangerous practices being followed. In response to my team ringing alarm bells, management pledged to rectify the serious problems which had been uncovered.
When I later complained that the pledges were not being kept, I was removed from my oversight function.
Four years later, a massive gas leak occurred on the platform. Two workers lost their lives. I have no doubt at all that the inaction of the relevant Asset Manager, the General Manager, the Oil Director and Malcolm Brinded, contributed in some part to the unlawful killing of two persons on Brent Bravo in September 2003.
Shell subsequently pleaded guilty to breaches of the HSE regulations and a record-breaking £900,000 fine was imposed. I thought this would bring about a real change in policy to put the emphasis on safety.
Unfortunately I was wrong. Although I supplied the evidence related to 1999, and the fact that there had been a collapse in controls of integrity from 1999 to 2003 on all 16 of Shell's North Sea offshore installations covered in a post fatality integrity review to the HSE for review by the Procurator Fiscal, none of this evidence was presented before the Sheriff at the subsequent Inquiry. The situation is explained in a letter to the Procurator Fiscal and the Sheriff (on 24th February 2007).
Shell management has engaged in spin to try to pretend that it is getting to grips with its safety problem. However, its atrocious safety record - the worst in the North Sea in terms of accidental deaths and absolute number of enforcement actions – tells a different story. This fact has resulted in a number of newspaper articles.
I have had meetings with senior Shell people including its CEO Mr. Jeroen van der Veer. I regret to say that I have found him to be economical with the truth. He prefers to support cover-up and deceit rather than confronting the underlying problems. Brinded is now Executive Director of Shell Exploration & Production. He believes in burying evidence.
My family and friends would probably prefer me to give up on this matter and enjoy my retirement after so many years working for Shell.
However, by writing to every MP in the UK, no one can ever say that I did not do my best to avert an inevitable further major accident event in the North Sea. When it happens (I pray that I am wrong) I will make this warning communication available to the media together with the vast amount of evidence in my possession.
At least my conscience is clear. I have done everything possible to ring the alarm bells about Shell management and its unscrupulous attitude to the safety of its employees.
Yours sincerely
Bill Campbell
ENDS
(Malcolm Brinded and Jeroen van der Veer are no longer with Shell. The Oil Director referred to in the email is Chris Finlayson, who left Shell to become Chief Executive of British Gas before being fired - his photo immediately below)
SIR PHILIP WATTS, THE GROUP CHAIRMAN OF ROYAL DUTCH SHELL GROUP, FORCED TO RESIGN IN 2004
Shell’s reputation was destroyed in 2004 after FIVE consecutive cuts to its hydrocarbon reserves covering 55% of its total reserves. US and UK financial regulators imposed $150 million in fines on Shell for securities fraud. Shell was also rocked by class action lawsuits. Sir Philip Watts
and Walter van de Vijver (whose headcut images appear courtesy of The Wall Street Journal) were among the Shell executives forced to resign. More details at the foot of this column.
MORE DETAILS: The Shell reserves scandal brought about
the end of the Royal Dutch Shell Group in its original form as an Anglo-Dutch partnership.
Shell Transport & Trading Co and Royal Dutch Petroleum were unified into a single Dutch owned company - Royal Dutch Shell Plc.
Sir Philip turned to religion and is now a very wealthy priest after receiving a payoff/pension package from Shell reportedly worth $18.5 million. Walter van de Vijver in contrast was the victim of a sadistic sacking by his Shell senior management backstabbing colleagues.
Displayed below are some of the spectacular promotional campaigns my company Don Marketing created for Shell in the 1980s and 1990s. This was before the series of SIX high court actions we brought against Shell for stealing ideas (4) and for defamation (2) - all settled by Shell. This website is a permanent response by me to the malicious underhand tactics, including treachery, espionage and intimidation, used by Shell during and after the bouts of litigation. More information is printed at the foot of this column.
MORE DETAILS: After a solicitor acting for Shell threatened to make the litigation "drawn out and difficult" with the intention of draining the resources of a financially weaker opponent, my late father (Alfred Donovan) and I decided to mount a wide-ranging campaign as a counter-measure. We jointly founded the Shell Corporate Conscience Pressure Group, which nearly 15% of Shell UK retailers joined. We regularly conducted ethical surveys involving up to 1500 Shell petrol stations. All responses were opened and authenticated by an independent solicitor who supplied Affidavits confirming the results. In whole page announcements in trade magazines (examples above) we challenged Shell to commission and publish the resuits of independent research asking the same questions and offering respondents GUARANTEED anonymity. Shell never took up the invitation. Instead it asked the UK Advertising Standards Authority to investigate our Shell surveys. No problems were found. The head-cut image of Alfred Donovan appears courtesy of The Wall Street Journal.
SHELL CONTROVERSIES
selection of memorable warnings/articles/images associated with the controversial track record of Royal Dutch Shell.
WARNING: DO NOT DISCLOSE YOUR IDEAS TO SHELL GameChanger OR SHELL Ideas360 WITHOUT TAKING EVERY POSSIBLE PRECAUTION. Shell management has ample funds to pay for intellectual property but prefers to steal it from small businesses and in our experience, gives its full backing to dishonest managers willing to do its bidding. We have sued Shell repeatedly in the High Court for the theft of our Intellectual Property. It is doubtful if anyone can match our dire experience in dealing with this ruthless unscrupulous serial poacher of other parties ideas. Expect threats, legal machinations and sinister action from Shell and its spooks if you object to having your ideas stolen.
Some years ago extensive documentary evidence was brought to the attention of Malcolm Brinded above, when he was Chairman of Shell UK, proving beyond any doubt that Shell executives had conspired to rig a tender for a major contract. A number of innocent firms were deliberately lured into signing confidentiality agreements and disclosing Intellectual Property to Shell under false pretences, in a carefully contrived plot. The firm which was awarded the contract never took part in the tender. One objective of the Machiavellian plan was to stop/delay IP trade secrets owned by the participants in the tender from being disclosed to Shell's rivals. This was achieved by outright deception, without paying a cent to the firms involved, who wrongly believed they were participating in an honest tender. Instead of sacking the ring leader, AJL - who had a personal relationship with the firm which miraculously won the race in which it never ran - Shell senior directors, including Brinded, gave AJL their full backing. Some of the Shell executives involved, including for example, Tim Hannagan, still hold high positions inside Shell - in his case, Global Brand and Visual Identity Manager. If Shell does not accept that this is a true, provable account of what happened, then it should sue for libel. How on earth is such predatory conduct compatible with Shell's claimed business principles?
OVER 500 EXTERNAL PUBLICATIONS CITING OUR SHELL WEBSITES
See our link list of over 500 articles by the FT, Wall Street Journal, Reuters, Bloomberg, Forbes, Dow Jones Newswires, New York Times, CNBC etc, plus UK House of Commons Select Committee Hansard records, information on U.S. Securities & Exchange Commission websiteetc. all containing references to our Shell focussed websites, or our website founders Alfred and John Donovan. Includes TV documentary features in English and German, newspaper and magazine articles, radio interviews, newsletters etc. Plus academic papers, Stratfor intelligence reports and UK, U.S. and Australian state/parliamentary publications, also citing our Shell websites. Click on this link to see the entire list, all in date order with a link to an index of over 100 books also containing references to our websites and/or our activities.
John Donovan, the website owner
A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
JOHN DONOVAN, THE OWNER OF THIS AND SEVERAL OTHER SHELL FOCUSSED WEBSITES
SHELL PRELUDE TO DISASTER
The links below are to a series of articles, many triggered by a well-placed whistleblower directly involved in the pioneering Royal Dutch Shell Prelude project. Includes articles by Mr Bill Campbell above, the retired distinguished HSE Group Auditor of Shell International and another retired Shell guru with a track record of spotting potential pitfalls in major Shell projects.
The campaign waged on this website by John Donovan to persuade Edward Heerema to rename the worlds biggest ship, The Pieter Schelte - which he named after his late father, Pieter Schelte Heerema, a former Officer in the German Waffen-SS - has been successful. On Friday 6 February 2015, Allseas announced that it was changing the ships name, and on 9 February announced the new name - Pioneering Spirit.
GLOBAL NEWS COVERAGE: FEBRUARY 2010
MORE INFORMATION: Contact details for over 176,000 employees and contractors of Royal Dutch Shell reached John Donovan and some environmental and human rights groups, ostensibly from disaffected Shell staff calling for a “peaceful corporate revolution” at the company. The database, from Shell’s internal directory, contained names and telephone numbers for all the company’s work force worldwide, including some home numbers. It was supplied with a 170 page covering note, explaining that it was being circulated by “116 concerned employees of Shell dispersed throughout the USA, the UK, and the Netherlands”, to highlight the harm done by the company’s operations in Nigeria. John Donovan brought the leak to the attention of Shell. Tests proved that the data was authentic and he destroyed the database after being informed by Mr. Richard Wiseman, the then Chief Ethics & Compliance Officer of Royal Dutch Shell Plc, that the confidential information if publicly disclosed, could put Shell employees and contractors in real danger.