Posts from ‘April, 2014’

Reuters article by Dmitry Zhdannikov published 30 April 2014

(Reuters) – Royal Dutch Shell capped a strong first quarter reporting season for oil majors with better-than-expected results which were boosted by gas earnings, while shareholders were rewarded with a higher dividend. Shell, which disappointed the market earlier this year with a rare profit warning, said the bulk of its writedown in downstream on Wednesday was related to the Bukom oil refinery in Singapore. The firm said its first quarter upstream earnings were supported by stronger gas results, offset by the impact of exploration well write-offs, and higher costs and depreciation. “Less positively, oversupply in the industry, rising costs on the back of increasingly difficult explorations, Shell’s exposure to Russia and generally lower margins all present challenges…” read more

Shell’s Ben van Beurden bows to Putin on Good Friday, 18 April 2014

Extracts from an article by AP Business Writer TOBY STERLING published 30 April 2014

AMSTERDAM (AP) – Royal Dutch Shell PLC says it will not be entering new investments in Russia anytime soon as tensions rise over the country’s confrontation with Ukraine. Chief Financial Officer Simon Henry said the company, Europe’s largest oil company, will continue to oversee its existing operations and will cooperate with any sanctions placed upon Russia by Western powers. Amid the uncertainty, however, it will hold back on starting new projects. Meanwhile, Henry defended a meeting this month between Shell CEO Ben van Beurden and Russian President Vladimir Putin, saying it should not be interpreted as the company taking sides in the Ukrainian crisis. read more

By John Donovan

The head of the corrupt, seedy Brunei Royal Family, the Sultan of Brunei, who once accepted a $500,000 wedding gift from Royal Dutch Shell, has gone ahead with his plans to introduce a penal code that will include amputations.

Extracts from a BBC News article dated 30 April 2014

Brunei will introduce a tough Islamic penal code from Thursday, its leader has announced. Sharia punishments that will include the severing of limbs for theft and death by stoning for adulterers will be brought in over three years. In April, the UN voiced “deep concern” about the planned change. The tiny state, on the island of Borneo, is ruled by Sultan Hassanal Bolkiah and has grown rich on oil and gas exports. When he announced it last year the Sultan, 67, one of the world’s wealthiest men, called the code “a part of the great history of our nation”. The move sparked a rare strong response on social media. In February the Sultan warned internet users to stop attacking his plans. read more

Extracts from a Shell to Sea News Release dated 30 April 2014

In a report submitted to the UN Human Rights Council in March 2013, the UN Special Rapporteur on Human Rights Defenders Margaret Sekaggya, called on the Irish Government to “Investigate all allegation and reports of intimidation, harassment and surveillance in the context of the Corrib Gas dispute in a prompt and impartial manner.” Ms Sekaggya’s recommendations were echoed earlier this year by Archbishop Desmond Tutu who supported the call for an independent inquiry into the policing of Corrib. read more

Extract from A Motley Fool article by Mark Stones published 30 April 2014 under the headline:

Royal Dutch Shell Plc Hikes Dividend On Cash Flow Boost

Shell this morning reported a 44% fall in profits on a $2.9bn impairment charge relating to refineries in Asia and Europe. Shell’s profit in the first quarter — stripping out losses relating to the changing value of inventories — fell to $4.5bn from $8bn a year earlier. Revenue fell to $110bn against $113bn.

FULL ARTICLE

Extracts from a Bloomberg News article by Bob Van Voris published 29 April 2014

Mercuria Energy Trading SA and a Hess Corp. (HES:US) unit were added as defendants to a lawsuit claiming they conspired with oil companies including BP Plc (BP/), Statoil ASA (STL) and Royal Dutch Shell Plc (RDSA) to manipulate Brent crude oil prices. “By providing false or inaccurate information and engaging in false or sham trading, defendants undermined the entire pricing structure for the Brent crude oil physical and futures markets,” the investors claimed in their new complaint. read more

Shell’s Ben van Beurden bows to Putin on Good Friday, 18 April 2014

By John Donovan

I have checked and thus far have been unable to find any photographs of Rex Tillerson (ExxonMobil) or Robert Dudley (BP) bowing in the slightest to Putin. It seems that only Royal Dutch Shell executives, Jeroen van der Veer, Peter Voser, and Ben van Beurden, have been prepared to stoop that low.

Leads me to speculate whether Chris Finlayson was infiltrated into BG Group by Royal Dutch Shell for surreptitious purposes, including dragging the company down. If so, he appears to have done a magnificent job.

By John Donovan

BG Group has been the subject of bid speculation for a long time. e.g.

• BG Group shares rise on bid reports (BBC News Aug 2010)
• Speculation over hostile bid for BG Group (London Evening Standard Nov 2012)
• BG Exposed to Bids (Bloomberg Jan 2013)
• BG Group investors say Finlayson’s exit raises takeover prospect (FT 28 April 2014)

Extract from the FT article:

However, a top 10 shareholder said that, with BG now rudderless, it had become a prime takeover target. “It’s a green light to a potential bidder….”

ExxonMobil is identified as one such potential bidder.

According to an email I received this morning from a Shell source: “BG… reserves might also be good for Shell…”

Shell has certainly flirted with the idea many times. read more

Extracts from a PLATTS article by Tamsin Carlisle published 28 April 2014

The Oman government’s crackdown on graft in oil and gas contracting has become the talk of the town in Muscat, with opinions sharply divided on whether it is going far enough. Five officials of the gas division of Petroleum Development Oman, a joint venture between the government of Oman, Royal Dutch Shell, France’s Total and Portugal’s Partex, remain on trial in the Galfar cases, which are still before the court.  PDO Managing Director Raoul Restucci attributed the embroilment of Oman’s flagship oil and gas producer in the corruption scandal to a few bad apples. read more

Extract from a Forbes article by Tim Worstall published 29 April 2014

The imposition of sanctions on various Russian people and organisations over the Ukraine threatened to pose a number of problems for the big energy companies, especially BP and Shell. If Rosneft itself were placed on the list, for example, or Gazprom, the the respective situations for BP and Shell would change markedly. …obviously neither of them is going to flout the law of a country where they have such considerable interests, as they do in the US.  read more

28 April 2014

An historic legal hearing will begin on 29th April 2014 which will hear evidence from the UK lawyers representing 15,000 Nigerian fishermen from the Bodo community against oil giant Shell in a hearing which will determine the key legal issues to be considered in one of the largest ever environmental law cases which is due to take place in May 2015.

The ‘preliminary issues hearing’ will be the first time Shell have had to face formal Court proceedings in the UK for its environmental record in the Niger Delta, following two massive oil spills in 2008 and 2009. read more

Shell’s Ben van Beurden bows to Putin on Good Friday, 18 April 2014

Extract from a Reuters article by Karolin Schaps published 28 April 2014

Reuters) – Anglo-Dutch oil major Shell said it will comply with all international sanctions, following a United States government decision to impose sanctions against the head of Russian oil producer Rosneft. The U.S. on Monday slapped sanctions on seven Russian government officials and 17 companies linked to Russian President Vladimir Putin…

FULL ARTICLE

Extract from Forex Live article by Mike Paterson published 28 April 2014

…part of the US plans looks likely to have a serious impact on UK energy giants BP and Shell The US Treasury is also eyeing some form of sanction against Gazprombank, the financial arm of the gas monopoly Gazprom. This would greatly complicate Shell’s joint operations with Gazprom…

FULL ARTICLE

RELATED: U.S. Sanctions Target Putin’s Inner Circle 

Extract

The Obama administration imposed sanctions on seven Russian officials and 17 companies linked to Russian President Vladimir Putin’s inner circle involved in banking, energy and infrastructure. The list includes Igor Sechin, OAO Rosneft chief executive officer… read more

“BG Group chief executive Chris Finlayson has been ousted by the oil and gas explorer’s board following a disastrous 16 months in the job….” No one can say that we did not repeatedly warn BG Group about the competence and ethics of Chris Finlayson…

By John Donovan

The news media is reporting that former Royal Dutch Shell executive Chris Finlayson has quit as CEO of BG Group.

Actually, he was unceremoniously fired.

Extract from article published by The Independent: “BG Group chief Chris Finlayson resigns after 16 months at the helm”

BG Group chief executive Chris Finlayson has been ousted by the oil and gas explorer’s board following a disastrous 16 months in the job.  He is understood not to have another job to go to… In an unusually blunt statement Gould said: “The board felt that it was in the best interests of the group to accept Chris’ resignation and seek fresh leadership.” Since taking over Finlayson has presided over a succession of profit warnings and a 37% slump in annual profits… read more

Shell’s Ben van Beurden bows to Putin on Good Friday, 18 April 2014

EXTRACT FROM REUTERS PRESS DIGEST – Wall Street Journal – April 28 read more

Shell’s Ben van Beurden bows to Putin on Good Friday, 18 April 2014

Extracts from a Washington Post article published by The New Zealand Herald on Monday 28 April 2014 under the headline: “Big Oil and Putin’s big plans”

Last week, on the same day that national security adviser Susan Rice threatened that sanctions on “very significant sectors” of the Russian economy would be the price of Putin pushing further into Ukraine, the CEO of Royal Dutch Shell was visiting Putin’s residence, saying, “We are very keen to grow our position in the Russian Federation.” As Putin increasingly acts out his dreams of grandeur – his ridiculous Eurasian Union idea, his fantasies of restoring czarist “novorossiya” or the U.S.S.R. – he is testing the edges of his power. He wants to be seen as too big to fail. Big Oil siding with him could make those dreams come true. read more