Shell and Eni Struggle To Control Oil Spills In Nigeria

Shell and Eni Struggle To Control Oil Spills In Nigeria

Mar 20th, 2015

by John Donovan. 

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By: MICHEAL KAUFMAN
Published: Mar 20, 2015 at 9:35 am EST

As reported by Bloomberg, Amnesty International has indicated that Royal Dutch Shell plc (ADR) (NYSE:RDS.A) and Eni SpA (ADR) (NYSE:E) are finding it difficult to control the oil spills in Nigeria. Amnesty International asserted that both companies have been involved in over 550 oil spills in the Southern Niger Delta River. This is much higher than the average of ten oil spills per year in Europe from 1971 to 2011.

Nigeria is regarded as one of the major crude oil producers. According to Bloomberg, the country records daily production of two million barrels. Hence, it has attracted the attention of many major energy companies. The oil spills are a major source of concern for the residents of the country. The Nigerian community believes that oil spills lead to serious environmental concerns. The fisherman community, in particular, feels that the spills are damaging the fishing villages in the Niger Delta.

The oil companies hold the belief that a majority of the spills are caused by oil theft and sabotage in the Niger Delta.

Bloomberg further reported Audrey Gaughran, the global issue director of Amnesty International, claiming the situation to be alarming. He said if these oil spills had occurred in any other country, an emergency would have been declared. However, this appears to be a standard operating procedure for the oil industry in Nigeria.

In 2014, Eni SpA was responsible for 349 oil spills. A year earlier, the Roma-based company had reported 500 oil spills. Amnesty International feels that Eni should be investigated for negligence.

The largest crude oil producer in Nigeria, Shell, was responsible for 204 oil spills in the region. The company received significant criticism for two of oil spills in January 2008. Last year, the company agreed on paying $81 million to the Bodo community, who were affected by the spill. The company fought a three-year battle with the community before finally agreeing to pay the amount.

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Posted in: Africa, Bloomberg, Business Principles, Eni, Environment, Human Rights,John Donovan, Nigeria, Oil, Oil Spill, Pollution, Royal Dutch Shell Plc.
Tagged: Litigation · Niger Delta · Nigeria · Oil · Royal Dutch Shell Plc

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SPDC Completes Sale of Oil Mining Lease 18 in Nigeria

SPDC Completes Sale of Oil Mining Lease 18 in Nigeria

Mar 20th, 2015

by John Donovan. 

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Cautionary note: Shell has a track record in Nigeria of repeated oil spills; toxic gas flaring without end; arming police thugs; hiring militant gang leaders; hanging Nigerian campaigners while in bed with one particularly despotic regime; paying bribes to corrupt Nigerian government ministers and infiltrating spies into the Nigerian government.

THE HAGUE, The Netherlands, March 20, 2015 /PRNewswire/ –

The Shell Petroleum Development Company of Nigeria Limited (SPDC), a subsidiary of Royal Dutch Shell plc (Shell) (NYSE: RDS.A) (NYSE: RDS.B), has completed the assignment of its 30% interest in oil mining lease (OML) 18 and related facilities in the Eastern Niger Delta. Its interests in OML18 were assigned to Eroton Exploration & Production Company Limited. Total cash proceeds for Shell amount to $737 million.

This divestment is part of the strategic review of SPDC’s onshore portfolio and is in line with the Federal Government of Nigeria’s aim of developing Nigerian companies in the country’s upstream oil and gas business.

Shell has been in Nigeria for more than 50 years and remains committed to keeping a long-term presence there – both onshore and offshore. Through SPDC and its other Nigerian companies, Shell responsibly produces the oil and gas needed to help fuel the economic and industrial growth that generates wealth for the nation and jobs for Nigerians.

OML18 covers an area of 1,035 square kilometres and includes the Alakiri, Cawthorne Channel, Krakama, and Buguma Creek fields and related facilities. The divested infrastructure includes flow stations together with associated gas infrastructure plus oil and gas pipelines within the OML. The divested fields produced on average around 14,000 barrels of oil equivalent per day (100%) during 2014.

Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited have also assigned their interests of 10% and 5% respectively in the lease, ultimately giving Eroton Consortium a 45% interest in OML18.

All approvals have been received from the relevant authorities of the Federal Government of Nigeria.

Notes to editors:

SPDC is the operator of a joint venture between the Nigerian National Petroleum Corporation (55%), SPDC (30%), Total E&P Nigeria Limited (10%) and Nigerian Agip Oil Company Limited (5%).

ADDED BY JOHN DONOVAN:

Cautionary note: Shell has a track record in Nigeria of repeated oil spills; toxic gas flaring without end; arming police thugs; hiring militant gang leaders; hanging Nigerian campaigners while in bed with one particularly despotic regime; paying bribes to corrupt Nigerian government ministers and infiltrating spies into the Nigerian government.

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Posted in: Africa, Bribery, Business Principles, Corruption, Eni, GoogleNews, John Donovan, Nigeria, Oil, Oil Spill, Pollution, Royal Dutch Shell Plc, Shell, Shell Spying.
Tagged: John Donovan · Niger Delta · Nigeria · Oil · Royal Dutch Shell Plc

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Shell Leads Gulf Sale Bids

Shell Leads Gulf Sale Bids

Mar 20th, 2015 

by John Donovan. 

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By: MICHEAL KAUFMAN: Published: Mar 19, 2015 at 1:06 pm EST

Extracts

The Oil and Gas Journal, quoting US Bureau of Ocean Energy Management (BOEM), has reported that the Gulf of Mexico, Central Planning Area Lease Sale 235 attracted around 195 bids from 42 companies. Major energy companies such as Statoil ASA (ADR) (NYSE:STO), Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM) and Royal Dutch Shell plc. (ADR) (NYSE:RDS.A) led the bids.

Shell was the highest bid placer placing around 17 bids amounting to $37.89 million.

FULL ARTICLE

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Posted in: Bidness Etc, BP, Chevron, Exxon Mobil, Gulf of Mexico, Oil, Royal Dutch Shell Plc.
Tagged: BP · Chevron · ExxonMobil · Oil

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Massive Layoffs Occurring in the Oil Industry

Massive Layoffs Occurring in the Oil Industry

Mar 20th, 2015 

by John Donovan. 

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From an article by Wall Street Sector Selector Staff published 19 March 2015

Massive Layoffs Occurring in the Oil Industry

Husky Energy operating in the Canadian oil sands announced it would cut capital expenditures and put some long-term projects on hold.

Husky Energy announced the layoffs of 1,000 workers.

Suncor and Royal Dutch Shell are both cutting workers in the Albian Sands project.

Twenty three thousand jobs could be lost according to the Canadian Association of Oil Drilling Contractors.

In the United States Baker Hughes has stated it will layoff 7,000 workers. 

FULL ARTICLE

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Posted in: Canada, Oil Prices, Oil Sands, Royal Dutch Shell Plc.
Tagged: Canada · Oil Prices · Royal Dutch Shell Plc

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Will Royal Dutch Shell Cut Its Dividend?

Will Royal Dutch Shell Cut Its Dividend?

Mar 20th, 2015 

by John Donovan. 

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From an article by Tim McAleenan Jr. published 19 March 2015 by Seeking Alpha

Will Royal Dutch Shell Cut Its Dividend?

Summary

• Royal Dutch Shell’s current dividend payout ratio is over 90%, putting the safety of the dividend in question.
• The good news for investors is that the company is sitting on $21 billion in cash, and likely has the ability to continue paying its dividend throughout continued low prices.
• The bad news for investors is that Royal Dutch Shell’s reserve replacement rate is only 47%, and this will affect the company’s long-term earnings power for producing oil.

FULL ARTICLE

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Posted in: Oil Prices, Royal Dutch Shell Plc.

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Arctic Drilling: Key decisions due at end of March for Shell

Arctic Drilling: Key decisions due at end of March for Shell

Mar 20th, 2015 

by John Donovan. 

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ARTICLE BY TIM BRADNER OF ALASKA JOURNAL OF COMMERCE, PUBLISHED 19 MARCH 2015

Key decisions due at end of March for Shell

Extracts

A key federal decision is shaping up for Shell at the end of this month.

The U.S. Bureau of Ocean Energy Management, or BOEM, expects to issue a final decision by March 31 on a revised environmental impact statement of the Chukchi Sea 2008 Outer Continental Shelf lease sale that has been contested in court by environmental groups, the director of the agency said March 13.

Abigail Hopper, director of the BOEM, said a Record of Decision on a revised supplemental environmental impact statement, or SEIS, is to be issued.

That will enable the agency to begin its formal review of a plan submitted by Shell for 2015 summer exploration in the Chukchi Sea, she said.

Although a decision in late March puts Shell on a tight timetable, the company hopes to get its drill fleet to the Arctic in time for the open-water drill season.

One of the most important “lessons learned” from Shell’s 2012 experience was that Shell had no integrated plan, he said.

A post-season review by the U.S. Department of the Interior on Shell’s 2012 drilling season, “showed that not all elements of the operations were synchronized. The need for better coordination, such as between the company and contractors, was one of the lessons learned in 2012,” Salerno said.

That may have contributed to management decisions leading to the loss of the Kulluk drill ship when it lost its tow and ran aground off Kodiak Island in a Gulf of Alaska storm in late 2012, he said.

FULL ARTICLE

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Posted in: Alaska, Arctic, Beaufort Sea, Chukchi Sea, Oil, Oil Spill, Royal Dutch Shell Plc, Shell, United States.
Tagged: Alaska · Arctic Ocean · Beaufort Sea · Chukchi Sea · Oil · Royal Dutch Shell Plc

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