The grotesquely high “compensation packages” of the Directors of the likes of HSBC as well as being morally repugnant are also bad for business. The rewards for making it to the top are so obscene that ladder climbers will do anything to make it. So every decision they take is driven by their own ambition and their need to kowtow to those who might appoint them to these golden jobs. This is a brake on creativity and innovation and on long-term thinking. read more

John Alfred Donovan, Founder, Owner and Group Chairman, Royal Dutch Shell Plc

Jul 3rd, 2014

by John Donovan.

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3 July 2014

By John Donovan

Interesting to note that my association with Royal Dutch Shell is so strong after a three decade relationship, that according to current information listed on zoom info (screenshot below), I am credited as being the founder, owner and Group Chairman of Royal Dutch Shell Plc. Guess it was only a matter of time. I now await the appropriate fat cat financial package with a multi-million pension pot.

CLICK ON IMAGE TO ENLARGE

Screen Shot 2014-07-03 at 13.54.05

zoominfo.com page 22 Sept 2015

Ben van Beurden: Surely Shell could have chosen a leader untainted by scandal?

Feb 2nd, 2014

by John Donovan.

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Ben van Beurden was private assistant and adviser to Sir Philip Watts during the two years prior to the shock announcement of the reserves scandal in January 2004, which resulted in a firestorm of devastating news coverage that still reverberates today, 10 years later. This was during the period when false information was routinely given to investors about Shell’s claimed oil and gas reserves. As private assistant and adviser to Watts, Ben van Beurden must have known what was going on and must have been complicit in the cover-up? Is it impossible to find suitable Shell leadership candidates untainted by failure and scandal?

By John Donovan

The Observer newspaper has today made the valid point that “Van Beurden knows what failure looks like, as he was a personal assistant to former chairman Sir Philip Watts when Watts was axed over the reserves scandal of 2004.”

This startling fact has rightly been highlighted in a number of articles published since the appointment of Ben van Beurden as the new CEO of Royal Dutch Shell Plc was first announced.

Ben van Beurden was private assistant and adviser to Sir Philip Watts during the two years prior to the shock announcement of the reserves scandal in January 2004, which resulted in a firestorm of devastating news coverage that still reverberates today, 10 years later. read more

Royal Dutch Shell leadership: Bring back Sir Henri Deterding

Feb 1st, 2014

by John Donovan.

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If only it was possible to resurrect Sir Henri Deterding at his best, the extraordinary Dutchman who built the Royal Dutch Shell Group. In his first couple of decades at Shell he was a brilliant decisive leader brimming with ambition, ideas and incredible determination. He would have acted to exploit BP’s self-inflicted misfortunes, whereas Van der Veer and Voser let the opportunity pass and instead took Shell down a disastrous path placing all bets on so-called elephant projects that turned out to be white elephants.

By John Donovan

In my view, the last Shell executive director/Chairman who had any gumption and plain commonsense was Sir John Jennings.

Since his time, long term Shell shareholders have witnessed a parade of hopelessly incompetent Royal Dutch Shell fat cat bosses.

The roll call of failed leaders includes Sir Philip Watts, Jeroen van der Veer and Peter Voser.

All three mired by disappointment and scandal.

Jorma Ollila has been non-executive Chairman of Royal Dutch Shell Plc for several years spanning the tenures of the last two failed CEO’s and has proven equally uninspiring and flawed. read more

Energy giants battle to pump profits

Jan 26th, 2014

by John Donovan.

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At 55, Van Beurden, who replaced Peter Voser earlier this month, is a 30-year veteran at Shell where his career has mainly been focused on managing downstream businesses such as refining and chemicals. This week, as he announces full-year earnings, City analysts expect him to unveil details of a potential $15bn to $30bn (£9.1bn to £18.1bn) garage sale… Shell has a reputation for gluttony when it comes to tackling giant energy projects, betting billions of dollars on strategic investments aimed at building reserves and capturing future demand decades in advance. Those days may be over.

By Andrew Critchlow: 8:00PM GMT 25 Jan 2014

On the face of it, Royal Dutch Shell’s new chief executive, Ben van Beurden, and Bob Dudley, his counterpart at , are a world apart.

At 55, Van Beurden, who replaced Peter Voser earlier this month, is a 30-year veteran at Shell where his career has mainly been focused on managing downstream businesses such as refining and chemicals.

This week, as he announces full-year earnings, City analysts expect him to unveil details of a potential $15bn to $30bn (£9.1bn to £18.1bn) garage sale, signalling a new era of capital discipline and streamlining at the Anglo-Dutch supermajor. read more

CFO Simon Henry: Just how many lives has this Shell fat cat got?

Jan 25th, 2014

by John Donovan.

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Simon Henry was CFO when the ship was set on its disastrous course of over-promise and under-delivery, beset by project delays and cost overruns, resulting in the recent profits warning and the dramatic advice just issued by Zacks Investment Research that Royal Dutch Shell Plc is “a risky bet that ordinary investors should exit.” He has had a hand on the helm throughout the long voyage, during the Sakhalin2 debacle, the Corrib Gas Corruption scandal and more recently, Shell’s Arctic ambitions hitting the rocks. As I have previously pointed out, he also had a starring role in the reserves scandal and managed to evade the flak on that occasion as well. Just how many lives has this Shell fat cat got?

By John Donovan

The role of RDS Chief Financial Officer, Simon Henry, in the instability that has overtaken Shell, thus far seems to have largely escaped scrutiny and blame?

He is the most senior remaining Royal Dutch Shell executive spanning the tenure of the last three top executives at Shell, Sir Philip Watts (dishonest bullying egomaniac), Jeroen van der Veer (dishonest and out of his depth) and Peter Voser (incompetent and ill-advised).

Simon Henry was CFO when the ship was set on its disastrous course of over-promise and under-delivery, bedeviled by project delays and cost overruns, resulting in the recent profits warning and the dramatic advice just issued by Zacks Investment Research that Royal Dutch Shell Plc is “a risky bet that ordinary investors should exit.” read more

Royal Dutch Shell Profits Slump Debacle

Jan 17th, 2014

by John Donovan.

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Based on our insider information, we, and only we, raised the question of whether Royal Dutch Shell CEO Peter Voser jumped ship or was pushed. I think we now have the answer that explains his unexpected early retirement under the cloak of a change of lifestyle. How do you know that Shell is run by clowns? The continued existence of this website over the last decade proves that this is the case. One miscalculation after the other. Just over 2 months ago, we raised the profits warning issue: “Why no profits warning from Shell?“

By John Donovan

Just over 2 months ago, we raised the profits warning issue: “Why no profits warning from Shell?“

I would now like to put a simple question to our visitors.

What news source has provided the most accurate assessment about Royal Dutch Shell Plc and the senior management?

Not the BBC, The Wall Street Journal, the Financial Times, The Guardian, The Telegraph, The Motley Fool or any other source. Certainly not shell.com.

The most accurate assessment and information has consistently emanated from this website. read more

Shell: New Boss required but limited choices

Jul 10th, 2013

by John Donovan.

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As for Commander Odum, he of the theatre of Operations, only a marine incident etc school he was doomed not by the grounding of the good ship Kulluk, but in the lie telling that followed.Â It was not I fear just poor Lawrence of Alaska who suffered from this misadventure.Â

COMMENT RECEIVED FROM BILL CAMPBELL, RETIRED HSE GROUP AUDITOR, SHELL INTERNATIONAL:

Dear John

It was not a surprise to me that Simon Henry was not in the running, the Head Shed watchers of this website would have realised that he carried heavy baggage from the reserves affair, also Shell does not appreciate the washing of its dirty linen in public, the stories for example from the lips of Simon that Pastor Phil (did he have an out of spacesuit experience when he passed through the heavenly layer on his way back to ground at Maastricht and was thus converted) was carrying a huge chip on his shoulder because he was not an Oxbridge man, who knows.Â Henry, as the Bedouin are fond of saying say, was outside the tent pissing in, an unforgivable sin. read more

Shell under the skin, 10 years after crisis

May 30th, 2013

by John Donovan.

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For years, the independent investigation by law firm Davis Polk & Wardwell showed, executives had exchanged emails about “lying” and “fooling the market”. The would-be whistleblower, Van de Vijver, wrote in December 2003 that a report on the real reserves position “needs to be destroyed”.

By Andrew Callus

LONDON | Wed May 29, 2013 7:31pm EDT

(Reuters) – A decade ago, Royal Dutch/Shell’s (RDSa.L) boss was fighting to close the gap between the truth about his company’s oil and gas reserves and the much larger figure in its accounts.

He lost the fight, and his job. Scandal engulfed one of the world’s biggest companies, exposing years of neglect.

Fast forward to May 2013, and the surprise news that chief executive Peter Voser will retire next year caused barely a ripple. Shell has recovered shareholder confidence. But while the risks may all be in the open now, they remain big. read more

Ruthless and bad behaviour at the top of Royal Dutch Shell

May 24th, 2013

by John Donovan.

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The foot soldiers, of whom I was one in Shell, often took their leads from what they saw as ruthless and bad behaviour at the top – and, unsurprisingly, sometimes behaved badly themselves.

(Disgraced Shell Chairman Sir Philip Watts shown right)

Article by retired Royal Dutch Shell executive Paddy Briggs.

I received my first monthly pay check from a Shell company back in October 1964. It was for £200 and I was probably a bit overpaid in truth. I started work at seventeen so the not infrequent visits to pubs and wine bars with my new colleagues during those first couple of months before my 18th Birthday were on reflection a bit dodgy. The colleagues paid of course understanding that my lowly status as a dogsbody was matched by an appropriately low wage. They were jolly times and though everyone seemed to play hard, especially at long liquid lunches, they worked together quite effectively as well. The team that played together stayed together – and there was a high level of integrity around. At no point during my “induction” months did anyone read out rules to me – and if you had used the term “Mission Statement” people would have thought that you were a Jehovah’s Witness. The rules that mattered were mostly informal – the dress code was fairly tight – dark suits and ties de rigueur. But the idea that you needed to be told what to do with some “code of behaviour” booklet would not have occurred. And if you were uncertain someone would put you right – the informal organisation was far more important than the formal. read more

THE RACE FOR VOSERS JOB

May 3rd, 2013

by John Donovan.

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With regard to your most obvious rivals, Simon Henry seems to be a very intelligent, competent executive, but comes with the baggage of his starring role in the reserves scandal. I published our verdict. Based on my strange experience of communicating with Marvin Odum via RDS Plc Company Secretary Michiel Brandjes, I reached the conclusion that Mr Odum is a creep. As the New York Times has correctly speculated, he carries “the stigma of the Alaska debacle.”

Email to Royal Dutch Shell Upstream International Director Andrew Brown

From: John Donovan <[email protected]>
Subject: THE RACE FOR VOSERS JOB
Date: 3 May 2013 09:54:33 GMT+01:00
To: [email protected]

Dear Mr Brown

As you may recall, we published a leaked email from you minutes after you sent it, the content of which, with my normal lack of tact, I described as drivel.

According to press reports you are a candidate in the race for Peter Vosers job, along with Simon Henry and Marvin Odum.

Perhaps I have read too many gossip columns, but I find the carefully constructed formulation of the resignation quote attributed to Mr Voser rather odd. read more

Shell Lent Former Directors $12M For Reserves Fraud Legal Costs In 2004

Apr 2nd, 2013

by John Donovan.

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By John Donovan: As can be verified from page 81 of the Shell Form 20F 2004 filing with the US Securities & Exchange Commission and a related Wall Street Journal article, Shell lent the fraudsters responsible for the reserves scandal $12 million to cover litigation costs. Almost a decade later, I have not seen any evidence that any of the money was ever repaid? Perhaps the Rev. Sir Philip Watts, or Simon Henry, the current Royal Dutch Shell CFO, who played a starring role in the scandal, can enlighten us?

Extract from Page 81

Over the year 2004, the Group advanced a total of $12,048,441 (certain amounts have been converted at the average £/$ exchange rate for 2004) for litigation costs for former Board members under these provisions.

Shell Lent Former Directors $12M For Legal Costs In 04

DOW JONES NEWSWIRES March 31, 2005

LONDON — Royal Dutch/Shell (RD,SC) said in a filing released Thursday it was in settlement talks on some of the class action litigation unleashed after it was forced to reclassify its oil reserves.

In a 20-F filing with the Securities and Exchange Commission, the oil giant said it was in talks with holders of various Shell Oil Company pension plans which had been launched in the U.S. under the Employee Retirement Income Security Act of 1974. read more

Verdict on Royal Dutch Shell CFO Simon Henry

Feb 11th, 2013

by John Donovan.

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Shell internal email correspondence irrefutably proves that Simon Henry was aware in March 2002 that “reserves bookings were made that should not have been made”. Walter van de Vijver, the “sick and tired” Chief Executive of Shell EP, gave the information directly to him. As can be seen in the email, Walter van de Vijver aggressively accused Mr Henry of setting targets that were near impossible to achieve. The question arises of whether Mr Henry was a culprit, an accomplice, or an innocent bystander.

By John Donovan

INTRODUCTION

We have published a series of articles about the starring role of Simon Henry in the Royal Dutch Shell reserves scandal.

Shell internal email correspondence irrefutably proves that Simon Henry was aware in March 2002 that “reserves bookings were made that should not have been made”. Walter van de Vijver, the “sick and tired” Chief Executive of Shell EP, gave the information directly to him. Walter van de Vijver accused Mr Henry of setting targets that were near impossible to achieve. read more

A word in your Shell-like

Feb 8th, 2013

by John Donovan.

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FROM OUR FEBRUARY 2005 SHELL NEWS ARCHIVE: “…we learned last year that the company leadership had been systematically lying to itself, its shareholders and wider stakeholders about the size of its oil reserves.”: “for years Shell lied about its sustainability as a business while preaching principles that it was betraying.”: “Shell had knowingly overstated its reserves by a third, a monumental betrayal of trust that is Europe’s version of Enron.”

By John Donovan

We have printed below a brilliant Will Hutton article published by The Observer on Sunday 6 February 2005. As he correctly says, this was a company that was lying to itself. No wonder Sir Philip Watts is seeking redemption.

The Observer: A word in your Shell-like

By Will Hutton: Sunday February 6, 2005

There’s nothing wrong with making profits. But we deserve a more sophisticated debate about sharing them

There is nothing like the news of one of Britain’s biggest companies making record profits to bring out all our ambiguities about capitalism in general and profit in particular. The left’s traditional mistrust of corporate money-making still casts a long shadow and even capitalists are uncertain how to respond when their profits are booming. read more

Desperation led to Shell’s plotting to exploit 9/11 attacks

Feb 7th, 2013

by John Donovan.

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BUILD UP TO SHELL RESERVES SCANDAL: Comments by leading Shell execs: “…the market will want to know whose head is going to roll for what they will see as blatant deception.”; “this is potential dynamite for management credibility and the share price”; “…how you have to break the detail of this news in September, assuming that there is indeed a firestorm of hostile comment…”; “why should we have any more confidence in these numbers than the previous ones…”; “…please don’t let the people who have got us into this mess be under any illusion that there is an ‘easy’ answer…”; “You will blight the relative TSR of the Group and everyone’s score card for years to come”; ‘So “blaming”’ it on field declines and slippage on growth in emerging markets is the least we should do in order to downgrade expectations.’

By John Donovan

When we published an article about Shell executives plotting to exploit the 9/11 attacks, we said that the motive behind the discussion was well founded internal and external concern about Shell production growth and problematic reserves.

We now publish Shell internal emails circulated in the months leading up to 9/11, which provide proof of the degree of concern over these issues that led to Shell executives considering such a distasteful strategy to manipulate the markets.

Some extracts: read more

9/11 Terror Attack and the Shell Reserves Scandal

Feb 5th, 2013

by John Donovan.

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By John Donovan

On Friday we published an article revealing Shell internal email correspondence, which provided proof that three weeks after the 9/11 terrorist attack on the USA, Shell executives were considering how Shell could exploit the horrific event for commercial reasons.

As can be seen from the correspondence, the objective was to “buy us a bit of time” in dealing with “production growth” … and “reserves replacement…” Both are key factors in assessing the value of an oil company. Shell was increasingly vulnerable to criticism on both issues.
read more

Shell big investors in a revolutionary mood

Jan 23rd, 2013

by John Donovan.

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Shell News, this day, 9 years ago: Shell investors were still in a state of shock over the dramatic disclosure that Shell had vastly overstated its proven oil and gas reserves. The main villain, the fraudster, Sir Philip Watts, was still Royal Dutch Shell Group Chairman. Lord Oxburgh was still backing him.

Daily Mail: Rebels demand shake-up at Shell

By Brian O’Connor,

23 January 2004

DISSIDENT Shell investors are seeking a shake-up in the complex structure of the board and its committees. One result may be that an outside chairman is appointed when Sir Philip Watts steps down.

This would be a revolution for Shell, but big investors are in a revolutionary mood.

Though most boards now have a full-time chief executive and a part-time chairman, the UK company Shell Transport has traditionally had an executive chairman. So too has its sister company Royal Dutch Petroleum. read more

Simon Henry and the reserves time bomb

Jan 21st, 2013

by John Donovan.

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Were they aware that Simon Henry was a key player, as Head of Global Investor Relations, in dealing with the reserves data and actually had responsibility to ensure the quality/accuracy of the data before it was disclosed to analysts and investors? As we all know, it turned out that some of the data was not only inaccurate, but fraudulent. He had been warned that a Gorgon 600 million BOE reserves booking was an IR time bomb.

Introduction: A draft of the article below was supplied to Shell in advance, namely to Mr Michiel Brandjes, the Company Secretary & General Counsel Corporate of Royal Dutch Shell Plc and the CFO, Mr. Simon Henry. We invited Shell to point out any factual inaccuracy and/or supply comment for unedited publication with the article. No response other than an automated message has been received.

ARTICLE

By John Donovan

On 13 March 2009, the Financial Times published an article about Simon Henry, who was about to become Chief Financial Officer of Royal Dutch Shell Plc. It said that he had survived the reserves misreporting scandal with his reputation intact. I wonder how much investigation of the facts was undertaken before arriving at that conclusion? read more

Short list of praiseworthy senior Royal Dutch Shell executives

Jan 18th, 2013

by John Donovan.

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Now we have his equally scandal tainted successor, Peter Voser, Chairman of the UBS Audit Committee at the time when UBS was engaged in all kinds of criminal activity.

Posting on Shell Blog by LondonLad on Jan 17th, 2013 at 19:56

In all honesty can the Donovan’s kindly list some of the past and present senior executives of Royal Dutch Shell that they would support for their good work, honesty, ability to abide by country HSE requirements, etc. etc. More and more it seems that if you work for RDS at a (very) senior level they’ll get shafted via real AND tabloid reporting on this website, Greenpeace (dick-heads), and other tree hugging websites. We (the countries around the world) need to advance, risks need to be taken as a result…. read more

Candid testimony of Simon Henry about disgraced Shell EP Boss Walter van de Vijver

Jan 14th, 2013

by John Donovan.

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As can be seen in his testimony, Simon Henry deliberately limited the amount of time that Walter van de Vijver spent with UK and US investors, almost as if there was something to hide? Wonder what current Shell investors will make of that revelation? An insight into how Mr Henry thinks shareholders can be manipulated and shielded from potential spontaneous outpourings of the truth. The Dutchman wouldn’t learn his lines.

“I am becoming sick and tired about lying,” said Walter van de Vijver (right), senior executive at Royal Dutch/Shell. Photo Credit: Chris Ratcliffe/Bloomberg News

Candid testimony of Simon Henry about the disgraced Shell Exploration And Production Chief Executive, Walter van de Vijver (shown right).

Simon Henry became Head of Shell Group Investor Relations in March 2001. His predecessor was Walter van de Vijver.

Extracts from the sworn testimony of Simon Henry to the U. S. Securities and Exchange Commission on 19 October 2004 in Washington D.C. The reference to “one on one” meetings, was in regard to Shell senior management meetings with analysts and investors.

As can be seen in the testimony, Simon Henry deliberately limited the amount of time that Walter van de Vijver spent with UK and US investors, almost as if there was something to hide? Wonder what current Shell shareholders will make of that revelation? An insight into how Mr Henry thinks shareholders can be manipulated and shielded from potential spontaneous outpourings of the truth. The Dutchman wouldn’t learn his lines. read more

Candid testimony of Shell’s Simon Henry about Sir Philip Watts

Jan 13th, 2013

by John Donovan.

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Q: Do you like Mr. Watts personally? A: It was difficult to like Phil. He was not a guy you go for a beer with. …he was still running with that chip on his shoulder… He was a guy from the wrong side of the tracks.

Candid (some might say indiscreet) testimony of Simon Henry about the disgraced Shell Group Chairman Sir Philip Watts (shown right).

Extracts from the sworn testimony of Simon Henry to the U. S. Securities and Exchange Commission on 19 October 2004 in Washington D.C.

Mr Henry is currently Chief Financial Officer of Royal Dutch Shell Plc.

Q: With the benefit of hindsight, were there ever instances where you believed Mr. Watts provided the market with incomplete or inaccurate information?

A: With the benefit of hindsight, he answered a lot of questions about Gorgon, and with the benefit of hindsight, they could have been answered differently. read more

Reputational damage to Peter Voser

Jan 7th, 2013

by John Donovan.

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By John Donovan

The mainstream news media is reporting that the reputational damage to Peter Voser and the Shell board arising from the Arctic meltdown is huge. The fact that Shell’s leadership is hopelessly incompetent comes as no surprise to us. No competent board with an ounce of commercial commonsense would allow this website to continue in existence, bearing in mind the damage it has done to Shell over the years by providing an outlet for Shell insider leaks. A Shell official has admitted our success in humiliating the company. Watts was a disaster, Jeroen van der Veer meekly surrendered Shell’s controlling stake in the Sakhalin II project and Voser has now been exposed as a hypocritical fat cat who poured scorn on BP, instead of minding his own ship. Why did Shell rehire Voser in the first place? Surely it would have been better to find someone not tainted by financial scandal to lead Shell after the reserves fraud? read more

Prophetic 2004 photograph of Shell Group Chairman Sir Philip Watts

Dec 23rd, 2012

by John Donovan.

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Prophetic 2004 photograph of the then Royal Dutch Shell Group Chairman and fraudster Sir Philip Watts (above) from a Sunday Telegraph article published on 18 January 2004 days after the Shell reserves scandal made news headlines around the world. Right, a photograph from 2012, also of Sir Philip, but rematerialized this time as the Rev. Sir Philip Watts. Personally, I think his most memorable role was when he materialized as a spaceman. Hope someone warns his congregation not to mention anything that might remind him of his colorful past, for example, when he was allegedly an arms supplier in Nigeria. (Article posted by John Donovan) read more

CHRIS FINLAYSON AND THE ROYAL DUTCH SHELL RESERVES SCANDAL

Dec 18th, 2012

by John Donovan.

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“With regards to the reserves fraud, Mr Finlayson was either part of the cover-up, or negligent in his fiduciary duties as a senior Shell executive, supposedly protecting the interests of investors”; “That should be of great concern to investors in BG Group. Surely the company could have found a new CEO untainted by scandal?”

John Donovan

In January 2004 news broke about the Shell reserves fraud. These examples from hundreds of news reports speak for themselves:

Daily Telegraph: Shell drops bombshell on reserves: 9 Jan 2004
The Times: How Shell blew a hole in a 100-year reputation: 10 Jan 2004
The West Australian: Investors howl for Shells blood: 12 Jan 2004

Shell executives, led by then chairman Sir Philip Watts, who has recently repented by becoming the Rev. Sir Philip Watts, admitted they had repeatedly lied to investors about the true level of Shells oil and gas reserves. Shell senior management had engaged in a massive cover-up to fool the market i.e. deceive its own shareholders. Shell admitted that it had misled investors. read more

SHELL BUSINESS PRINCIPLES – GENUINE OR CON TRICK?

Dec 5th, 2012

by John Donovan.

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By John Donovan

Shell has for many years supposedly operated within an ethical code which, according to its current shell.com webpage on the subject, was first published in 1976.

This does not tally with the relevant pages in “A HISTORY OF ROYAL DUTCH SHELL, Volume 3,” about the history of the code – known in the 1990’s as the Shell Statement of General Business Principles.

Apparently they were first drafted in 1962, restated and first published in 1976, made freely available to the public from 1981 and reformulated in 1997, for the first time including human rights. read more

The Neptune Strategy: Shell Propped up Apartheid in South Africa

Nov 26th, 2012

by John Donovan.

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By John Donovan

In 1987, Shell Oil Co implemented a secret 265 page plan devised by a Washington based firm, Pagan International.

The devious plan was designed to undermine support for critics of Shell’s policy of propping up the despised racist apartheid regime in South Africa, just as Shell and its Nazi leader, Sir Henri Deterding, propped up Nazi Germany before WW2.

The objective of Shell’s secret campaign was to neutralize boycott groups, including church and civil rights groups, unions and academics. read more

From Mammon to God: Oiligarchs beat the path from profit to pews

Nov 19th, 2012

by John Donovan.

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“Watts only ended his 35-year career with Shell because he was forced out over the 2004 oil reserves fiasco. News that the company had been overstating its reserves by 20 per cent caused Shell’s stock prices to fall by $15bn — yet Watts still walked away with a £1 million pay-off and a pension of more than £500,000 per annum…”

It’s not just Justin Welby – oiligarchs beat the path from profit to pews

5 November 2012

From Mammon to God. The Church of England seems to be flooded with former oil men at present.

Last week Justin Welby, who spent 11 years working as an oil executive, was appointed as the new Archbishop of Canterbury. What’s less well known is that another big name in oil has received a clerical promotion. Sir Philip Watts, Shell’s former chairman, is to become priest in charge at Waltham St Lawrence, Berkshire, after being a curate at another local church.

Although they worked in the same industry, the two men’s paths to salvation have been rather different. While Welby voluntarily swapped the high pay for pews because he was “unable to get away from a sense of God calling”, Watts only ended his 35-year career with Shell because he was forced out over the 2004 oil reserves fiasco. News that the company had been overstating its reserves by 20 per cent caused Shell’s stock prices to fall by $15bn — yet Watts still walked away with a £1 million pay-off and a pension of more than £500,000 per annum. read more

How Shell’s Move To Revamp Culture Ended in Scandal

Nov 14th, 2012

by John Donovan.

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FROM OUR NOVEMBER 2004 SHELL NEWS ARCHIVE

How Shell’s Move To Revamp Culture Ended in Scandal: “The root of the problem, however, goes significantly further back than Sir Philip’s reign, which began in 2001”: “These deeper roots are significant because the company has yet to make a full break with its past. Mr. van der Veer is a longtime Shell executive who sat on the committee that received — and dallied over — warnings about the accounting problems.”: “In addition to its ambitious plans to discover new oil and gas cheaply, Shell under Sir Mark was redefining how it counted existing reserves.”: “Sir Mark Moody-Stuart, chairman from 1998 to 2001, remains on the board of Shell’s English parent… He declined to comment about reserves issues. And Shell still can’t seem to get a handle on its reserves.”

As New-Age Style Came In,
Geology Skills Lost Out;
Imitating Jerry Springer
Oilmen at a Rainy Playground

By CHIP CUMMINS and ALMAR LATOUR Staff Reporters of THE WALL STREET JOURNAL

November 2, 2004; Page A1

In late 2000, the head of the Dutch exploration unit at Royal Dutch/Shell Group asked his planners to deliver five-minute skits pitching ideas for discovering oil and gas.

In one skit, a naked employee ran on stage to catch the boss’s attention, say two people who attended. Another featured a mock episode of the Jerry Springer show, the incendiary daytime TV talk program. A third, after a bit of fun and games, promised to extract large quantities of natural gas cheaply from seemingly declining Dutch fields. read more

Disgraced former Shell Group Chairman ‘The Reverend Sir Philip Watts’

Nov 13th, 2012

by John Donovan.

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ITS NOT A HOAX. I’M NOT MAKING IT UP. THE MAN IN THE DOG COLLAR IS WHO YOU THINK IT IS: DISGRACED FORMER ROYAL DUTCH SHELL GROUP CHAIRMAN SIR PHILIP WATTS, THE RESERVES FRAUDSTER ESCORTED FROM THE SHELL CENTRE BY SECURITY GUARDS. I WELL REMEMBER THE TRANSFORMATION PROCESS, BUT THIS IS UNBELIEVABLE!

FROM A FORMER EP HAND WHO WORKED CLOSELY WITH WATTS

John

Perhaps you see fit to publish this unbelievable story. I nearly had a fit when I read it and was convinced it was a hoax. But apparently it is all true, proving that real life is more strange than the most far fetched fiction that Hollywood (or nowadays the BBC) can dream up.

Look at these links:

http://www.walthamstlawrence.info/index.php?option=com_content&view=article&id=341:appointment-of-priest-in-charge&catid=43:news-articles&Itemid=58

(The churchwardens are delighted to announce that the Rev. Sir Philip Watts has been appointed to be Priest in Charge at Waltham St. Lawrence.) For some reason forgot to mention in his CV the name of the energy company of which he was Chairman. read more

How Shell’s Move To Revamp Culture Ended in Scandal

Nov 3rd, 2012

by John Donovan.

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FROM OUR NOVEMBER 2004 SHELL NEWS ARCHIVE

How Shell’s Move To Revamp Culture Ended in Scandal

Paddy Briggs, a retired Shell communications executive, recalls one event where he and about 40 executives were issued shovels and pick-axes and dispatched to a Dutch village to help it restore an old playground. The oilmen gave up around lunchtime amid heavy rain. Such gimmicks became the butt of jokes, “but nobody said, ‘Hey, have we lost our minds here?’ “says Mr. Briggs.

As New-Age Style Came In,
Geology Skills Lost Out;
Imitating Jerry Springer
Oilmen at a Rainy Playground

By CHIP CUMMINS and ALMAR LATOUR

Staff Reporters of THE WALL STREET JOURNAL

November 2, 2004; Page A1

In late 2000, the head of the Dutch exploration unit at Royal Dutch/Shell Group asked his planners to deliver five-minute skits pitching ideas for discovering oil and gas.

A DREADFUL DAY FOR SHELL SHAREHOLDERS, ESPECIALLY UK SHELL SHAREHOLDERS

Oct 29th, 2012

by John Donovan.

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FROM OUR OCTOBER 2004 SHELL NEWS ARCHIVE

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

How Shell changed its culture and lost its way

Jun 18th, 2012

by John Donovan.

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FROM OUR ARCHIVES…

Financial Times: How Shell changed its culture and lost its way

By Ian Bickerton

Published: June 17 2004 21:36

Posted 18 June 2004

It is rare to find Royal Dutch/Shell in openly confessional mood. Yet as Jeroen van der Veer, its managing chairman, stood with the applause of the oil group’s 400 senior executives ringing in his ears at a conference in Houston, Texas, last month, he will have known that the response was an expression of relief that the century-old Dutch-British company had finally come clean.

“Did the mid-90s transformation bring the desirable behaviours?” asked Mr van der Veer. “Or did it erode professionalism, corporate cohesion, ‘enterprise first’ thinking and loyalty?” read more

Shell executives paid no bonuses in 2003

May 27th, 2012

by John Donovan.

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Jeroen van der Veer told staff in Houston, Texas, this week that he would not tolerate “bullying” within the company, and admitted that its dealings with business partners had often been “arrogant”.

FROM OUR ARCHIVES…

Financial Times: Shell executives paid no bonuses in 2003

By Adrian Michaels

Published: May 28 2004

Royal Dutch/Shell, the embattled oil company, on Thursday said it had paid no bonuses to senior executives last year, seeking to reassure investors after months of turmoil and resignations as it published its annual report.

The report, which was publised two months later than usual, also contained expanded information on Shell’s controversial oil and gas reserves. Reserves were separated out geographically by continent for the first time and there was a fuller explanation of reserve accounting policies.
read more

Shell seeks to draw a line after fourth cut in reserves

May 25th, 2012

by John Donovan.

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FROM OUR ARCHIVES…

Shell seeks to draw a line after fourth cut in reserves

By Michael Harrison, Business Editor

25 May 2004

Royal Dutch-Shell, the crisis-torn oil giant, yesterday cut its proven reserves for the fourth time this year but then sought to reassure the City that it had drawn a line at last under the fiasco.

The latest downgrade means that Shell has now removed 4.5 billion barrels of oil from the proven category, equivalent to just under a quarter of its total reserves.

Malcolm Brinded, the head of exploration and production for Shell, said he was as sure as he could be that this would be the last revision to reserves estimates. “We are not planning to make further changes but you can never say never,” he added.
read more

US pension fund giants lead Shell onslaught

May 9th, 2012

by John Donovan.

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FROM OUR ARCHIVES

By John Donovan

In May 2005, Royal Dutch Shell was in the middle of the maelstrom arising from the reserves scandal. Shell had defrauded many of its own shareholders as a result of filing false information with the US Securities & Exchange Commission. The Sunday Telegraph article printed below provides an insight into the subsequent legal “onslaught”.

After being approached by the U.S. lawyers, Bernstein Liebhard & Lifshitz, acting for the lead plaintiffs, I supplied Shell insider evidence and contact with Shell whistleblowers, including Dr John Huong, a Shell production geologist. read more

Will disgraced Shell boss Sir Philip Watts be stripped of his knighthood?

Jan 31st, 2012

by John Donovan.

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POSTING ON SHELL BLOG BY “SirPhil” ON 31 Jan 2012

“Having read that the former RBS-CEO, Fred Goodwin, has been stripped of his knighthood by UK authorities. Makes you wonder if and when Sir Phil Watts will stripped of his one. No doubt Phils selfish behaviour at the helm of Shell did more harm to the industry and private investors than Fred.”

RELATED ARTICLES

Memos expose Shell’s years of lying

EXTRACT: The correspondence between Mr Watts and Mr Van de Vijver began in June 2001 when Mr Van de Vijver took over as head of exploration and production. He was promoted after Sir Philip was made chief executive partly because of his success with reserves. The two engaged in a “pointed dialogue”, with Mr van de Vijver complaining Shell had overbooked reserves throughout the 1990s.

‘It happened on my watch. I am determined to fix it’ read more

Royal Dutch Shell Another Enron?

Jan 25th, 2012

by John Donovan.

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Shell is very different from Enron. We were criticized for that some time ago and Im glad we have a absolutely rock-solid way we do business. And, if you read our annual report, you read our footnotes and all the details, everything is in there. Its all completely transparent, as far as Shell is concerned.

Sir Philip Watts, Group Chairman, Royal Dutch Shell Group

By John Donovan

During a Bloomberg interview in 2002, with the then Group Chairman of Royal Dutch Shell, Sir Philip Watts, reference was made to the core Royal Dutch Shell business principle of complete transparency.

The following is an extract from his exchange with Guy Collins of Bloomberg on 8 February 2002: –

COLLINS: I want to ask you about Enron and any parallels there. Do you have any off balance sheet liabilities? Do you have trigger mechanisms in place that make you vulnerable to changes in the share price or credit ratings? read more

London Evening Standard: Ex-Shell boss aims ‘to put record straight’

Jul 25th, 2005

by John Donovan.

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London Evening Standard: Ex-Shell boss aims ‘to put record straight’

“Watts is accusing the Financial Services Authority of blackening his name by association in its report into the oil giant’s disastrous over-reporting of how much oil it had in its reserves.”

Monday 25 July 2005

Jim Armitage,

SIR Philip Watts, the former chairman of Shell, today launched a legal fight to restore some of his battered reputation.

Watts is accusing the Financial Services Authority of blackening his name by association in its report into the oil giant’s disastrous over-reporting of how much oil it had in its reserves.

He is furious that the watchdog published its highly critical findings without giving him the right to defend himself against the allegations.

Under FSA rules, if an investigation is about to criticise individuals, it must first put the charges to the people accused, hearing their defence before publishing its report. read more

Why has Ex-Shell Boss Watts brought proceedings against the FSA?

Jul 25th, 2005

by John Donovan.

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ShellNews.net: Why has Ex-Shell Boss Watts brought proceedings against the FSA who did not name him in their Shell reserves scandal report but not against publishers and broadcasters who have named him in connection with the debacle?

Tuesday 26 July 2005

Numerous media reports have categorically named and blamed Sir Philip Watts for the Shell reserves debacle which destroyed Shell’s reputation. Yet Sir Philip has not brought proceedings against any of them. So why is he embroiled in proceedings against the Financial Services Authority who did not name and blame him in their report?

To take an example of one TV broadcast, we have provided extracts below from a BBC TV programme about the scandal – “The Money Programme”, aired on 15 July 2004. read more

London Evening Standard: Ex-Shell boss in showdown with FSA

Jul 25th, 2005

by John Donovan.

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London Evening Standard: Ex-Shell boss in showdown with FSA

“The case is crucial for Watts as the US Department of Justice is ‘still evaluating’ criminal action against Shell directors.”: “Watts is named in US class action lawsuits seeking ‘unspecified damages’ from present and former directors.”

Monday 25 July 2005

James Rossiter,

FORMER Shell chairman Sir Philip Watts and the Financial Services Authority (FSA) were today set to clash in a key hearing that could determine the city regulator’s legal rights and powers of investigation.

Watts claims he was ‘identified and prejudiced’ when the FSA explained in a public announcement why it fined the oil giant a record £17m last August over its reserves fiasco. The case is crucial for Watts as the US Department of Justice is ‘still evaluating’ criminal action against Shell directors. read more

Daily Telegraph: Former Shell chairman to challenge FSA findings

Jul 23rd, 2005

by John Donovan.

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Daily Telegraph (UK): Former Shell chairman to challenge FSA findings

“Sir Philip’s law firm Herbert Smith has claimed the FSA published its findings in undue haste. The FSA fined Shell £17m for market abuse and breaching the listing rules.”: “Shell yesterday sought to distance itself from comments made by its interim chairman Aad Jacobs to the Financial Times.”

By Caroline Muspratt (Filed: Saturday 23/07/2005)

Sir Philip Watts, former chairman of oil giant Shell, will argue on Monday that he should have been given the right to respond to the City regulator over its findings into Shell’s overstatement of its reserves.

The dispute between Sir Philip, who was ousted following the scandal last year, and the Financial Services Authority has been brewing since September.

Sir Philip has accused the FSA of “violating” his rights and running a “fundamentally flawed” investigation into Shell’s oil and gas reserves debacle. He has claimed that though the FSA report did not refer to him by name, he was effectively identified and prejudiced. read more

Daily Express: Shell pays £52m to help settle reserves actions

Jul 19th, 2005

by John Donovan.

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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

Daily Telegraph: Former adviser slams watchdog’s ‘closed mind’ ahead of review

Jul 18th, 2005

by John Donovan.

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Daily Telegraph: Former adviser slams watchdog’s ‘closed mind’ ahead of review

“The regulator is expected to face further scrutiny of its procedures next week when the tribunal holds a preliminary hearing on whether the FSA should have given Sir Philip Watts, former chairman of oil giant Shell, an opportunity to respond before it published its damning findings into Shell’s oil reserves scandal last year. Shell was fined £17m.”

Monday 18 July 2005

By James Moore, Financial Correspondent (Filed: 18/07/2005)

One of the lawyers involved in creating the Financial Services Authority yesterday savaged the watchdog’s disciplinary system, saying that it had a “win at all costs mentality”.

Angela Hayes, now a partner with law firm Lawrence Graham, and formerly one of the team of lawyers who advised on how to implement key parts of the Financial Services and Markets Act that created the FSA, said the watchdog was set to duck an opportunity to bring in “root and branch” reform. The watchdog is preparing to announce the results of a wide ranging review of its disciplinary system. read more

Royal Dutch/Shell Group has been hit again by the “Watts effect”

Jul 18th, 2005

by John Donovan.

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THE WALL STREET JOURNAL: Shell: Royal Dutch/Shell Group has been hit again by the “Watts effect”

Monday 18 July 2005

Edited by Hugo Dixon

July 18, 2005

Royal Dutch/Shell Group has been hit again by the “Watts effect.” The oil giant certainly looked on the bright side under its former chief executive, Sir Philip Watts. It didn’t just over-egg reserves; it also under-egged the costs of developing the giant Sakhalin gas project in Russia. Shell reckons it will now cost $20 billion, or about €16.5 billion, to develop the field. That is twice the amount when the project was approved two years ago. Citigroup estimates that the rate of return on the field will now drop to 11% — below Shell’s hurdle rate. (See related article – Read the article) read more

Daily Mail: Watts is on to a winner despite Russian setback

Jul 17th, 2005

by John Donovan.

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Daily Mail: Watts is on to a winner despite Russian setback

“SHELL’S remarkable share price rise since last year’s reserves scandal has given ousted chairman Sir Philip Watts a £3m gain in the value of his share options.”: “The oil giant is making so much from sky-high energy prices that its shares shrugged off the shock news that costs of its Sakhalin-2 gas project in Russia have doubled in two years to $20bn(£11.4bn). This hits the terms of Shell’s agreement with Russian gas giant Gazprom last week to swap 25pc of Sakhalin for half of a Gazprom field in Siberia.”

Sunday 17 July 2005

By Brian O’Connor

SHELL’S remarkable share price rise since last year’s reserves scandal has given ousted chairman Sir Philip Watts a £3m gain in the value of his share options.

The oil giant is making so much from sky-high energy prices that its shares shrugged off the shock news that costs of its Sakhalin-2 gas project in Russia have doubled in two years to $20bn(£11.4bn).

This hits the terms of Shell’s agreement with Russian gas giant Gazprom last week to swap 25pc of Sakhalin for half of a Gazprom field in Siberia. read more

THE SUNDAY TELEGRAPH: Showdown looms in Watts’s fight with FSA

Jul 17th, 2005

by John Donovan.

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THE SUNDAY TELEGRAPH: Showdown looms in Watts’s fight with FSA

“The FSA’s notice, published in August, explained why it had decided to fine Shell £17m over the affair. Watts, who was ousted from Shell in March 2004 following the scandal, first complained to the tribunal last September. He claimed that although the FSA report did not refer to him by name, he was effectively identified and prejudiced.”:

Sunday 17 July 2005

By Sylvia Pfeifer (Filed: 17/07/2005)

The bitter dispute between Sir Philip Watts, the former chairman of Shell, and the Financial Services Authority over whether the City regulator violated his rights will come to a head next week.

The Financial Services & Markets Tribunal, which hears appeals against FSA decisions, will hold a preliminary hearing on July 25 on whether the regulator should have given Watts an opportunity to respond before it published its damning findings into Shell’s overstatement of its reserves last year. read more

Shell admits impact of Sakhalin-2 overruns

Jul 16th, 2005

by John Donovan.

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Financial Times: Shell admits impact of Sakhalin-2 overruns

“Jeroen van der Veer, Royal Dutch/Shell chief executive, admitted that the “absolutely staggering” $10bn (£5.7bn) cost overrun on Sakhalin-2, its flagship Russian gas project, was another blow to the group’s standing after last year’s reserves accounting scandal.”

Saturday 16 July 2005

By Thomas Catan

Published: July 16 2005

Jeroen van der Veer, Royal Dutch/Shell chief executive, admitted that the “absolutely staggering” $10bn (£5.7bn) cost overrun on Sakhalin-2, its flagship Russian gas project, was another blow to the group’s standing after last year’s reserves accounting scandal.

“I fully realise it has an impact on our reputation – certainly for this project, and then of course I’m concerned it will carry over to other things that we do,” Mr Van der Veer said yesterday in an interview with the Financial Times. read more

THE TIMES: Shell forced to admit Russian costs have doubled

Jul 15th, 2005

by John Donovan.

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THE TIMES: Shell forced to admit Russian costs have doubled

“The doubling of costs and an anticipated half-year delay to the construction schedule is a blow to Shell’s reputation as a project manager and it will lead to further embarrassment with Shell’s partners, including Gazprom, the Japanese investors Mitsui and Mitsubishi, and the Russian Government.”

Friday 15 July 2005

By Carl Mortished, International Business Editor

SHELL has been forced to admit that the cost of Sakhalin Energy, a vast liquefied natural gas project in Eastern Siberia and a pillar of the company’s future expansion, has ballooned from $10 billion to $20 billion (£11.4 billion).

The doubling of costs and an anticipated half-year delay to the construction schedule is a blow to Shell’s reputation as a project manager and it will lead to further embarrassment with Shell’s partners, including Gazprom, the Japanese investors Mitsui and Mitsubishi, and the Russian Government. read more

The Independent: Shell to pay £50m damages in US over reserves scandal

Jul 13th, 2005

by John Donovan.

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The Independent: Shell to pay £50m damages in US over reserves scandal

“Shell moved a step closer to putting last year’s reserves reporting scandal behind it by agreeing to pay $90m (£50m) in damages yesterday to a group of US employee shareholders who had brought a class action lawsuit against the oil giant.”: “But there are still a further two shareholder class action suits pending in the US, while the Dutch financial markets regulator, the ASM, and the pan-European stock exchange Euronext are continuing to investigate Shell.”: “In addition, Sir Philip’s personal role in the affair is still being investigated by the FSA.”

Wednesday 13 July 2005

By Michael Harrison, Business Editor

Published: 13 July 2005

Shell moved a step closer to putting last year’s reserves reporting scandal behind it by agreeing to pay $90m (£50m) in damages yesterday to a group of US employee shareholders who had brought a class action lawsuit against the oil giant.

The settlement follows last week’s news that the US Justice Department has decided not to take any criminal action against Shell over the affair, which resulted in it cutting its proven reserves by a quarter and firing three top executives, including the chairman Sir Philip Watts. read more