Posts from ‘August, 2004’

Reuters: Shell waives Czech refinery share option

Mon 30 August, 2004

Posted 31 August 04

PRAGUE (Reuters) – Royal Dutch/Shell says it will not exercise its option to buy extra shares in top Czech oil refinery Ceska Rafinerska, held by state-controlled group Unipetrol.

Shell is the first of three Unipetrol partners in Rafinerska — the other two are ENI’s Agip and ConocoPhillips — to react on an obligatory buyout offer made by Unipetrol in June.

Shell said on Monday it would keep its existing 16.3 percent stake in the refinery. read more

Forbes: Shell, Sinopec Launch Gas Station Venture

“Royal Dutch/Shell and China Petroleum and Chemical Corp., have launched a joint venture to operate a network of about 500 service stations in eastern China’s Jiangsu province…”

Associated Press

08.31.2004

Royal Dutch/Shell and China Petroleum and Chemical Corp., have launched a joint venture to operate a network of about 500 service stations in eastern China’s Jiangsu province, one of the country’s fastest growing regions.

China Petroleum, also known as Sinopec, and Shell inaugurated the Sinopec and Shell (Jiangsu) Petroleum Marketing Co. Ltd. in the provincial capital, Nanjing, over the weekend after receiving government approval, the companies said in statements on their Web sites. read more

The Scotsman.com: Shell Abandons ‘Self First’ Bonus Culture

“Shell was found by the Financial Services Authority in the UK and the Securities and Exchange Commission in the US to have committed market abuse and breached listing rules by misleading the market over the extent of its reserves.”

By Nicky Burridge, Personal Finance Correspondent, PA News

Posted 31 August 04

Oil giant Shell is changing its bonus scheme to encourage staff to focus on the whole company not just their own division, it emerged today.

The group, which has been embroiled in a crisis over its reserves, hopes the move will convert a “self first” culture into an “enterprise first” one.

The new scheme, which it hopes to have in place for 2005, will no longer pay out bonuses based on a combination of an individual’s performance and that of their division. read more

THE WALL STREET JOURNAL: Shell Sheds Refineries, Gas Stations

“Even after this year’s headline-grabbing scandal over its oil reserves, most people still best know Anglo-Dutch oil company Royal Dutch/Shell Group by the scallop-shell logo”: “a lot fewer people will be seeing this iconic emblem in the future”

Broad Plan Is Under Way

To Help Boost Profitability

Of Oil Products Division

By MARK LONG

DOW JONES NEWSWIRES

August 31, 2004

LONDON — Even after this year’s headline-grabbing scandal over its oil reserves, most people still best know Anglo-Dutch oil company Royal Dutch/Shell Group by the scallop-shell logo on its service stations and products.

But a lot fewer people will be seeing this iconic emblem in the future, as Shell rolls out a significant global purge of its refineries and gas stations. read more

Vanguard: Shell EP Africa leadership to comprise 30% Nigerians…New SPDC DMD appointed

“challenging security situation in the Niger Delta as well as the rising incidence of crude oil theft, currently put at 50,000 per day.”

By Hector Igbikiowubo

Tuesday, August 31, 2004

SHELL Exploration and Production (EP) Africa leadership is to be made up of 30 per cent Nigerian staff from the beginning of October this year when the headquarters is relocated from the Hague to Lagos.

The company has also announced the appointment of Mr. Mark Corner as the new deputy managing director.

Mr. Chris Finlayson, the outgoing managing director of Shell Petroleum Development Company (SPDC) made the disclosure while speaking at a diner party organised in honour of senior management staff of the company in Lagos last week. read more

Financial Times: Sinopec denies quitting project

“The company also announced a $187m joint venture with Royal Dutch/Shell to operate 500 petrol stations in eastern China.”

By Enid Tsui in Hong Kong

Published: August 31 2004

Chen Tonghai, chairman of Sinopec, one of China’s big three oil companies, yesterday denied that his company had withdrawn from the controversial west-east gas pipeline project in China.

The statement, made at a press conference in Hong Kong, contradicted an August 5 filing by rival Petrochina, which claimed that the joint venture framework agreement signed by all potential investors in the project, including Royal Dutch/Shell and Exxon-Mobil, had been terminated. read more

Daily Telegraph: Boards beware: the road to Shell was paved with ‘good’ intentions

“This being Shell, everything was systematic, and was approved at the highest level, and had been going on for years.”: “On top of all this comes the loss to Shell’s reputation – its ultimate hidden reserve.”: “It will have to be rebuilt and earned, and that takes time, if it can be done at all.”

By Chrsitopher Fildes (Filed: 31/08/2004)

Goodwill is hard to measure. Auditors prefer to write if off. Cynics define it as the difference between what you pay for something and what it proves to be worth. It can amount to a hidden reserve, until it turns out to have been overstated. Textbook example: Shell.

Everybody knew Shell, or thought they did. It was too big to miss, after all – durable, self-perpetuating and professional.

Its worst critics called it boring. That changed on the day when Shell owned up to overstating its reserves of oil, and the chairman was told to clear his desk. read more

AUGUST 2004 ROYAL DUTCH SHELL NEWS

Sunday 1 August, 2004

The Sunday Times: Special Report: In the dock: City watchdog accused of incompetence; “When it adopted an American-style settlement formula last week and allowed Shell to pay its fine without admitting guilt, the regulator set a precedent.”

The Sunday Times: Business Digest: “THE sale of Shell’s Ketch and Schooner gas fields is finally expected to get under way this month”

The Detroit News: New refineries aren’t built in U.S. anymore read more

AllAfrica.com: Shell Plans $9bn Five-Year Investment

“Coming at a time when there was some speculation about Shell’s future in Nigeria, this development is a resounding demonstration of Shell’s long-term commitment…”

Mike Oduniyi

This Day (Lagos)

Posted 31 August 04

Moves Headquarters to Port Harcourt January

Shell Petroleum Development Company (SPDC) is planning to invest another $9 billion in the Nigerian oil and gas sector, over the next five years.

The investment covers the company’s joint venture projects with the Nigerian National Petroleum Corporation (NN-PC), oil exploration and production in the deep offshore and the expansion of the Nigerian Liquefied Natural Gas (LNG) plant.

Already, Shell has awarded a $43 million contract for the exploitation of non-associated gas from its Oil Mining Leases (OMLs) 35 and 46. The gas will be supplied to the Bonny LNG plant from 2008. read more

Hydrocarbon Asia: Malaysia’s Shell Refining posts highest quarterly profit

“Chairman Jon Chadwick said: “We are pleased with this back-to-back achievement, surpassing even the record profit for the first quarter this year.”

Posted 30 August 04

SHELL Refining Company Bhd announced a net profit of RM175.3mil (US$1 = RM3.8) for its second quarter ended June 30, beating an earlier record profit of RM122.5mil in the first quarter.

Chairman Jon Chadwick said: “We are pleased with this back-to-back achievement, surpassing even the record profit for the first quarter this year.

“The excellent financial results was mainly due to the continued strength of our refining margins, sustained operational performance and to a lesser extent, stockholding gains,” he said in a statement yesterday. read more

Planet Ark: Shell in talks with China on Sakhalin gas deal

CHINA: August 30, 2004

SHANGHAI – Energy giant Royal Dutch/Shell is keen to sell liquefied natural gas LNG.L from its Sakhalin project to China, as it vies with rivals such as BP to tap the market’s potentially explosive growth.

But the world’s third-biggest oil group RD.AS SHEL.L will first have to overcome pricing issues and a still tiny market for supplies from the island development off eastern Siberia’s coast.

Shell, the biggest private supplier of LNG with sales of more than eight million tonnes per year, is ramping up efforts to tap a gas market expected to boom in coming years as Beijing inches toward cleaner fuels. Rival BP BP.L is hard on its heels. read more

Planet Ark: Russian Oil Project to Be Vetted for Whale Threat

“the International Whaling Commission last month warned energy exploration could kill off the 100 or so remaining gray whales on the oil-rich shelf near Russia’s Pacific coast”

SWITZERLAND: August 30, 2004

GENEVA – A top environmental group said last week it had agreed to probe an oil and gas project led by Royal Dutch/Shell off the Russian far east coast because of fears it threatens endangered whales.

The World Conservation Union said the Sakhalin Energy Investment Company had requested an independent study into its plans to expand production around Russia’s Sakhalin Island near feeding grounds of the Western Gray Whale. The independent scientific panel is expected to complete the review by the end of November. “Until then, Sakhalin Energy has postponed certain development work,” said the Swiss-based inter-governmental organization. read more

FROM OUR AUGUST 2004 SHELL NEWS ARCHIVE

Financial Times: Retired Shell engineer played central role

“the company had been engaged in accounting manoeuvres since 1997-98, including a flawed internal audit function”;  “Shell had engaged as [group reserves auditor] a retired Shell petroleum engineer – who worked only part time and was provided with limited resources and no staff – to audit its vast worldwide operations.”

By Adrian Michaels in New York and Carola Hoyos and Andrew Parker in London

Posted 30 August 2004

US and UK regulators on Tuesday went several steps further than Royal Dutch/Shell in their dissection of what went wrong.

The Anglo-Dutch oil group had already presented the main findings of an internal investigation in April into its reserves debacle.

That report heavily criticised dismissed senior executives – Walter van de Vijver, the former head of exploration, and Sir Philip Watts, former chairman. But it had less to say on how the company had been engaged in accounting manoeuvres since 1997-98, including a flawed internal audit function. The US’s Securities and Exchange Commission and the UK’s Financial Services Authority delve into the origin of the problems. “ read more

New York Times: Shell, Sinopec in China Retail Venture

“But Shell still lagged rival BP in the race for a piece of the lucrative Chinese market.”

By REUTERS

August 30, 2004

SINGAPORE (Reuters) – Royal Dutch/Shell Group(SHEL.L) said it would jointly operate 180 gas stations in China by the end of 2004, the second foreign oil major after BP to enter the country’s huge but tightly controlled retail market.

Shell’s joint-venture with state refiner Sinopec Corp (0386.HK) (SNP.N), would eventually run 500 retail outlets in eastern Jiangsu province, with total investments of $187 million, the companies said in a statement received by Reuters on Monday. read more

AFX Europe (Focus): Royal Dutch/Shell plans new staff bonus scheme

“Bernstein Liebhard & Lifshitz… ‘lead plaintiff’… considering including the auditors when it files an amended complaint against Shell next month.”

Aug 29, 2004

Posted 30 August 04

LONDON (AFX) – The Royal Dutch/Shell Group of companies intends to launch a new, company-wide bonus scheme from January as an incentive for staff to work together to rebuild the company’s credibility, The Sunday Times reported citing Jeroen van der Veer, chairman of the committee of managing directors.

He said he hoped it would encourage staff to think “enterprise first” rather than “self first”, according to the article.

The plans are still subject to staff negotiation in some countries, but about 90,000 people are expected to be covered by the arrangements. read more

TheDayOnline (Nigeria): Shell Plans $9bn Five-year Investment

“Shell said it was currently losing on the average, 50,000 barrels per day (bpd) to crude theft.”

Moves headquarters to Port Harcourt January

By Mike Oduniyi

Posted 30 August 04

Shell Petroleum Development Company (SPDC) is planning to invest another $9 billion in the Nigerian oil and gas sector, over the next five years.

The investment covers the company’s joint venture projects with the Nigerian National Petroleum Corporation (NN-PC), oil exploration and production in the deep offshore and the expansion of the Nigerian Liquefied Natural Gas (LNG) plant.

Already, Shell has awarded a $43 million contract for the exploitation of non-associated gas from its Oil Mining Leases (OMLs) 35 and 46. The gas will be supplied to the Bonny LNG plant from 2008. read more