Dutch

Royal Dutch/Shell Group Chairman Philip Watts apparently sent a letter to employees earlier this month to reassure them that no evidence of wrongdoing was involved in the company’s recent oil and gas reserves revision. However, despite the reassurances, a group of shareholders is calling for his resignation.

Royal Dutch/Shell Group Chairman Philip Watts apparently sent a letter to employees last week to reassure them that no evidence of wrongdoing was involved in the company’s recent oil and gas reserves revision. However, despite the reassurances, a group of shareholders is calling for his resignation.

Royal Dutch/Shell Group’s decision to reclassify its proven reserves by 20% continued to rattle energy investors and analysts on Monday, with many wondering whether other producers also will restate their reserves numbers in the near future. And in London, insiders say it’s only a question of weeks before Group Chairman Phil Watts is looking for another job.

Royal Dutch/Shell Group’s share price tumbled Friday after announcing it would recategorize nearly 20% of its proved hydrocarbon reserves — about 3.9 billion boe. More than 90% of the total comes from a reduction in proved undeveloped reserves; the remainder in proved developed. The changes would trim proved reserves to 15.6 billion boe from the 19.5 billion boe the major estimated in December 2002.

Na Kika, the deepwater Gulf of Mexico (GOM) project jointly owned by BP and Royal Dutch/Shell Group, achieved first production, the companies announced on Monday. At its peak, the project is expected to produce about 425 MMcf/d and 110,000 bbl, and ultimate production is expected to be nearly 300 MMboe.

Spanish energy group Repsol YPF said on Monday it will supply Royal Dutch Shell with about 2 billion cubic meters (70.6 Bcf) of liquefied natural gas (LNG) over the next two years. Repsol said it was the largest ever LNG supply deal in the United States.

Following on the heels of ExxonMobil’s major LNG supply deal with Qatar earlier this month (see NGI, Oct. 20), a Royal Dutch/Shell Group subsidiary, Qatar Shell GTL Ltd (Shell), said last week that it signed a deal with Qatar Petroleum to build the worlds largest gas to liquids (GTL) plant in Ras Laffan, Qatar.

Royal Dutch/Shell Group and ChevronTexaco Corp. were identified last week as potential partners with Australian-based mining/resources firm BHP Billiton in plans for the world’s first floating offshore LNG receiving terminal about 21 miles offshore from Oxnard, CA, a coastal town 50 miles west of Los Angeles.

Royal Dutch/Shell Group and ChevronTexaco Corp. were identified Tuesday as potentially joining the huge Australian-based mining/resources firm, BHP Billiton in the latter’s plans for the world’s first floating offshore LNG receiving terminal about 21 miles from Oxnard, CA, a coastal town 50 miles west of Los Angeles.