Posts from ‘August, 2014’

By John Donovan

I received an email from a regular contributor at noon today advising that “Ebola has reached Port Harcourt now. No doubt you are aware Shell has ‘some’ operations there…”

The contact also supplied a BBC News article: Ebola spreads to Nigeria oil hub Port Harcourt

Before I had time to decide whether to comment, Reuters published an article “Doctor dies of Ebola in Nigeria’s oil hub Port Harcourt”

Extracts

Port Harcourt lies at the heart of Nigeria’s two million barrels per day oil industry, Africa’s biggest, and is a hub for expatriate workers in major international oil companies, including Royal Dutch Shell, ENI, Total and Exxonmobil. read more

A Shell spokesperson claims that the company’s latest Arctic exploration plan takes into account lessons learned from the 2012 operation (which turned into a dangerous farce after Shell engaged in reckless machinations in an effort to evade tax).

By John Donovan

Royal Dutch Shell has filed a plan with US federal regulators that could result in a resumption of its Arctic drilling campaign in the summer of of 2015.

However, the oil giant still has significant regulatory and legal issues to deal with in the meantime.

A Shell spokesperson claims that the company’s latest Arctic exploration plan takes into account lessons learned from the 2012 operation (which turned into a dangerous farce after Shell engaged in reckless machinations in an effort to evade tax).  read more

A safety audit on the Brent Bravo platform in 1999 led by Bill Campbell exposed a “Touch F*** All” culture with safety records routinely falsified. The damning audit report was passed to then Shell EP director Malcolm Brinded, who made promises to remedy the situation that were not kept. Instead Brinded decided to put profits before safety. Hence the subsequent deadly explosion followed by a cover-up at the highest level of Royal Dutch Shell. It seems from recently published articles that despite all the pledges and the appointment of a so-called safety Czar, nothing has changed.

By John Donovan

In 2005, Shell received a record breaking fine of £900,000 at Stonehaven Sheriff Court, for a series of safety failings on the Brent Bravo platform, which led to a gas leak inside the giant platform’s utility leg and the tragic avoidable deaths of offshore workers.

A safety audit on the Brent Bravo platform in 1999 led by Bill Campbell exposed a “Touch F*** All” culture with safety records routinely falsified.

The damning audit report was passed to then Shell EP director Malcolm Brinded, who made promises to remedy the situation that were not kept. Instead Brinded decided to put profits before safety. Hence the subsequent deadly explosion followed by a cover-up at the highest level of Royal Dutch Shell. read more

The FT states: “Shell’s phlegmatic chief executive Ben van Beurden will need to hold his nose when he takes the money…” and in a related article, describes Shell’s actions as a “retreat from the Niger Delta” (triggered in part by militancy, violence and bunkering).

By John Donovan

The global firesale of Shell assets continues with the sale of four oil fields in Nigeria for $5 billion. 

The FT states: Shell’s phlegmatic chief executive Ben van Beurden will need to hold his nose when he takes the money…“ and in a related article, describes Shell’s actions as a “retreat from the Niger Delta” (apparently triggered in part by militancy, violence and bunkering). 

Extract from latter article: 

“…a militant uprising in the Niger Delta last decade led to severe supply disruptions, and though the worst of the violence has subsided, criminal gangs continue to cause havoc, siphoning off huge volumes of oil from the pipelines that criss-cross the delta.” read more

By John Donovan

An article by Matthew Smith published by Seeking Alpha warns about the potential adverse impact on the share value of companies with “exposure” in Russia, such as BP and Royal Dutch Shell.

The CEO of Shell, Ben van Beurden, is well aware of the risk to Shell’s Russian assets and future prospects, which explains his humiliating bowing to President Putin when they met just weeks after the Russian invasion and annexation of Crimea. Obviously a believer in appeasement.  read more

RUSSIA

Jeroen van der Veer, the former Royal Dutch Shell CEO who evaded responsibility for his role in the cover-up of the Shell reserves fraud, claims that the sanctions against Russia are not working and are counter-productive. This analysis comes from the man who badly misjudged the Putin regime in 2006 and as a result, ended up meekly surrendering Shell’s majority stake in the Sakhalin 2 project. 

• RELATED: Jeroen van der Veer: a candid assessment by Paddy Briggs
• RELATED: Jeroen van der Veer: Hypocrite Supreme

UK

The British government has just introduced a rule requiring oil, gas and mining companies registered in the UK to disclose all payments made to the governments of countries in which they operate. The new rule, which comes into force in 2015, is designed to result in greater transparency, something alien to oil companies such as Shell. Problems may arise in relation to Nigeria where Shell has a decades long history of corruption involving a succession of odious regimes. read more

“Printed below is an email received from a Mr Bruce Hubbard. Does Shell wish to comment? If you tell me that its is all false, or contains false information, then I will not publish it. If I receive no response within 7 days I will assume Shell does not take issue with the allegations and has no comment to make.”

By John Donovan

I have printed below the content of an email I received from Mr. Bruce Hubbard together with a related email I sent to Mr. Michiel Brandjes, Company Secretary and General Counsel Corporate, Royal Dutch Shell Plc. As can be seen, I gave Shell the opportunity to deny the allegations. I have not received any response. 

EMAIL RECEIVED BY JOHN DONOVAN FROM BRUCE HUBBARD

From: Bruce Hubbard <Bruce.Hubbard@radiospecialists.com.au>
Subject: Shell smashed to bits across Adelaide, South Australia
Date: 6 August 2014 04:32:17 BST
To: john@shellnews.net read more

“Royal Dutch Shell is another company with a doomed oil sands project, according to the Carbon Tracker Initiative. Its Carmon Creek project needs oil prices to hit $157 per barrel in order to be profitable. On top of that, Royal Dutch Shell is seeking to drill for oil in the Arctic, which has already wasted $5 billion of investors’ capital and would waste more money if drilling restarted.”

By John Donovan

According to an article by Matt DiLallo published by The Motley Fool on 23 August, former US VP Al Gore believes that the balance sheets of ExxonMobil, Royal Dutch Shell Plc, ConocoPhillips, Total SA and BP plc include $7 trillion of worthless ‘unburnable” carbon assets. 

Extract

“This unburnable carbon is the oil, gas, and coal that is still in the earth that, if extracted and burned, would push the globe over the edge in terms of climate change. Because this is an edge we can’t cross, it would suggest that the companies owning the assets are all but doomed.” read more

The litigation relates to a corruption case in which Shell was ordered to pay $48 million (£29.4m) in civil and criminal fines after its contractor (Panalpina Inc.) bribed Nigerian customs officials. It appears Shell decided  to make Robert Writt the fall guy for Shell’s involvement in the massive corruption scheme (targeting officials of a host country) by turning Writt in to the US federal authorities in the belief that Shell was safe from legal retribution by him. The Appeals Court decided otherwise. read more

By John Donovan

A contributor to the Shell Blog has requested an update on the long running OSSL saga. OSSL is the former “Mr Fixit” company working for Shell in Ireland that blew the whistle on alleged corruption surrounding the controversial Corrib Gas Project.

There have been two internal investigations by Royal Dutch Shell and three by the Irish police authorities. All reached the conclusion that there is no evidence to support the OSSL allegations.

In fact, there is evidence but for obvious reasons, neither the police nor Shell want to reveal the truth. read more

By John Donovan

Royal Dutch Shell says that it has suspended shale gas production in eastern Ukraine due to security concerns. 

A Shell spokesperson said:

“Currently we are not conducting drilling in eastern Ukraine. The security situation is such that we are not able to carry out certain activities scheduled by the shale gas production agreement for reasons beyond our control. Hence, we took a step specified in the contract to announce force majeure regarding certain obligations set in the agreement on gas production at the Yuzivka field. Shell’s interests in shale gas production in Ukraine remain the same, and we will continue to execute all kinds of operations that we can carry out safely.”  read more

By John Donovan

Andrew Manley worked at Shell for 30 years, leaving at the end of January 2010.

By then he was Downstream-One Programme Director. 

Mr Manley was a hapless individual and his emails were prone to leakage.

I published them, including the one when he announced his departure to no doubt delighted colleagues.

The IT project he led was plagued by delays. 

Mr Manley left to become an overpaid “high-flying Ministry of Defence mandarin.”

He grew very close to his 32 year old private secretary Laura Clare who he quickly promoted to be his chief of staff. Both are shown right. She obviously had impressive credentials. read more

By John Donovan

A number of current articles warn of falling oil prices. A zacks.com article says that oil prices have fallen below $100 to the lowest level this year and that natural gas has fared even worse. Nas.daq.com reports that the price of oil has plummeted, and that the fall is accelerating. It also points out that big oil has taken on $106 billion in new debt. A related article warns of $96 Billion of High-Risk Oil Megaprojects. The Russia/Ukraine crisis is partly responsible for the uncertainly and anxiety. read more

THE CORRUPT SULTAN OF BRUNEI – RECIPIENT OF SHELL WEDDING GIFT BRIBERY

Firstbiz. has published an article setting out 5 things it says you should know about the Sultan.

See “Meet Sultan of Brunei, the man willing to shell out more than $2 bn for Sahara’s hotels”

Extract: “Ironically, the Sultan’s Beverly Hills Hotel and Dorchester Collection properties in the United States have been subject to a boycott by many, including Hollywood personalities, following the Sharia penal code — which levies harsh punishments like flogging, the severing of limbs, and death by stoning for homosexuals and adulterers — that was instituted in the country of Brunei in early May.”  read more

SHELL’S USA FIRE SALE

The New York Times reports that the Blackstone Group, a private equity company, is paying Royal Dutch Shell $1.2 billion for a stake comprising more than 107,000 net acres in Louisiana. MORE

A related article by BusinessReport.com features a quote from Marvin Odum, president of Royal Dutch Shell’s U.S. division, Shell Oil Company. Marvin said in a statement: “We are adding highly attractive exploration acreage, where we have impressive well results in the Utica, and divesting our more mature, Pinedale and Haynesville dry gas positions.” MORE read more

A frosty reception for Shell sponsorship; Oil and Gas company debt soars to danger level; Shell a gigantic flea

By John Donovan

UK

The Telegraph City Diary column has commented on Shell’s embarrassment at arts sponsorship monies being returned to the  company in Ireland. “First the Antarctic, now Ireland. The list of countries where Royal Dutch Shell receives a frosty reception continues to lengthen. The energy major has been told that its sponsorship money for the Emerald Isle’s biggest folk festival, the Fleadh Cheoil na hEireann in Sligo, is no longer acceptable, after eco-campaigners kicked up a storm.” read more