Shell In Mayo: Qui Bono? Follow The Money Blog Is Here

by * Wed Jul 20, 2005 11:44

The Iran scandal

15.5 million US Dollars "fees" paid to an intermediary group to secure solid access in the lucrative Iranian oil market.  The "fees" were channelled through Horton Investments, a small company registered in Turks and Caicos Islands of the Caribbean and owned by a young Anglo-Iranian businessman .

There has been a huge problem tracing the funds and for all we know the funds could have ended up with Al-Qaida or other terrorist organisations. 5,2 million US Dollars of the total bribe is not accounted for .

Økokrim's Lars Stoltenberg said Statoil and Hubbard were fined because they failed to cancel the contract with Horton immediately after July 4 last year, when such contracts became criminally liable in Norway. They avoided indictment only because the contract itself was entered into before that time.  Statoil received 20 million NOK in fine.

For more information related to the Iran scandal:
Statoil receive 20 million NOK in fine (Aftenposten)
Son of Ayatollah Ali Akbar Hashemi Rafsanjani involved (Iran Press-service)
Secrecy toppled Statoil bosses in the Iran Scandal (Aftenposten)
Statoil faces uncertain future in Iran (Aftenposten)

The Azerbaijan Scandal

In Azerbaijan Statoil hired senior KGB officers to get sensitive information. All documents related to their work in Azerbaijan has very conveniently been maculated or disappeared. However Statoil confirm buying services from the KGB officers for several years. Statoil denies that the information has been used for extortions or bribery. Anyway we think it is a strange business practice to use foreign secret service agents if they only wanted to obtain legal available information.

The Nigeria Scandal

Five million USD has disappeared in dealings with the Nigerian company Allied Energy. Substantial amounts has also been transferred to Allied Energy Cayman Island Bank accounts.

by * Wed Jul 20, 2005 10:57

"there was a big scandal last year when the
internal audit discovered that the CEO had approved major bribery of Iran's ex-president Rafsanjani through an external consultant. This caused lots of heads to roll, including the CEO's. So my guess would be there is a fairly high treshold now for attempting a shortcut like that again."

(mail from a fellow blogger)

by redjade Tue Jul 19, 2005 18:03

Gavin has created a rather ambitious website called:
http://www.irishcorruption.com

Huge topic, hard to know where to begin!

Would be nice if he would looked this over.

by * Mon Jul 18, 2005 00:29

The Corrib diary . . . a never-ending saga

October, 1996: Corrib field is discovered by Enterprise Oil 70km off Mayo coast in over 349 metres of water, with the gas field a further 3,500 metres below sea level.
October, 2000: Bord Gais outlines plans to construct pipeline from North Mayo to Craughwell, Co. Galway, on behalf of the Corrib co-venturers—Enterprise, Statoil and Marathon.
November, 2000: Enterprise Energy Ireland (E.E.I.) applies for planning permission for an onshore terminal for Corrib at Bellanaboy, North Mayo.
January, 2001: Mayo Co. Council seeks more information from E.E.I. after local concerns are raised.
April, 2001: E.E.I. submits a new planning application for the onshore terminal.
June, 2001: Mayo Co. Council seeks further information on the second planning application for the onshore terminal.
July, 2001: E.E.I. sumits this further information. Meanwhile, the Minister for the Marine and Natural Resources, Mr. Frank Fahey, hosts a public meeting on offshore licensing aspects of Corrib in Geesala, Co. Mayo.
August 3rd, 2001: Mayo Co. Council grants planning permission for the onshore terminal, with conditions. This is immediately appealed to An Bord Pleanála by residents and environmental groups.
August 24th, 2001: Minister Fahey, during a debate on Corrib gas, tells the Humbert Summer School in Ballina that the objectors are holding up progress in the west.
October, 2001: The Minister for the Marine denies claims made in the Dáil by Mayo Fine Gael TD, Michael Ring, that he has been interfering in the planning process in relation to the Corrib project.
November 16th, 2001: Mr. Fahey issues a petroleum lease for Corrib gas field—the first new production lease in the last 30 years.
November 21st, 2001: E.E.I. submits new environmental impact statement to the Department of Marine and Natural Resources in support of application to construct a natural gas pipeline from sub-sea facilities to the terminal at Bellanaboy bridge. The company also applies for approval of its plan of development, a foreshore licence, and consent to construct the pipeline.
February, 2002: An Bord Pleanála opens its oral hearing in Ballina on the appeal against planning permission for the onshore terminal.
April, 2002: Mr. Fahey publishes Marine Licence Vetting Committee report which approved granting foreshore lease to Corrib project, with conditions.
May, 2002: Foreshore licence granted by Minister Fahey to E.E.I. shortly before he leaves office.
June, 2002: An Bord Pleanála requests further information on the onshore terminal application from E.E.I., now owned by Shell, and raises concerns about health and safety.
July, 2002: Managing Director of E.E.I., Mr. Brian Ó Cáthain, resigns and is replaced by Mr. Andy Pyle, formerly of Shell.
September, 2002: E.E.I. submits further information to An Bord Pleanála and denies reports that it may “abandon” the Corrib field.
November, 2002: An Bord Pleanála holds unprecedented second oral hearing into the E.E.I. terminal application. The two oral hearings have now lasted 22 days, making them the second longest in the board’s history.
December, 2002: E.E.I. and former Minister Fahey deny claims in a Channel 4 news report that “huge pressure” was exerted on Mayo Co. Council’s planning office to grant permission for the controversial terminal. E.E.I. also refutes a suggestion that it has chosen a highly dangerous route for the 8km pipeline from the seashore to the termainl at Bellanaboy.
March, 2003: E.E.I. again denies claims that it intends to “plug” the Corrib Field for a period of 20 years.
April, 2003: An Bord Pleanála overturns Mayo Co. Council’s decision to grant planning permission for the gas terminal. E.E.I. expresses disappointment with the outcome and announces that it is now considering the future of the Corrib gas project.
September, 2003: Enterprise Energy Ireland announces that it intends to submit a new planning application to Mayo County Council for an onshore gas terminal.
December, 2003: A new planning application is submitted by E.E.I., now known as Shell E&P Ireland. It includes revised plans for the removal of large quantities of peat from the terminal site.
February, 2004: Former civil servant and ‘Irish Man of the Twentieth Century’, Mr TK Whitaker, expresses concerns over the plans for an onshore Corrib gas terminal. Mr Whitaker owns a holiday home in Bangor.
March, 2004: Mayo County Council requests further information from the company on a number of issues pertaining to the application. The information is submitted within weeks.
April, 2004: Mayo County Council grants planning permission subject to a total of 75 conditions. Objectors immediately indicate that they intend to appeal the decision to An Bord Pleanála.
October, 2004: Shell is granted planning permission by An Bord Pleanála for the Bellanaboy gas terminal. The company announces that work will commence immediately. Residents say they are disgusted with the decision.
January, 2005: Preparatory work for the removal of peat from the terminal site begins at Bangor. Shell publishes details of a traffic management plan for the duration of the work.
April, 2005: Proceedings are instituted in the High Court to prevent residents obstructing the construction of the gas pipeline at Rossport. The High Court grants Shell the right to access private lands in the village for the installation of the pipeline. Meanwhile, it is revealed that Shell employed a company of which it is a substantial shareholder to conduct an ‘independent’ audit of the pipeline’s safety.
June, 2005: Five residents from Rossport are jailed for contempt of court for refusing to obey the High Court order not to interfere with the construction of the Corrib gas pipeline. The men vow to stay in prison until they get justice.

by * Mon Jul 18, 2005 00:11

Shell deal marks Ion's arrival

17 July 2005  By Gavin Daly
The purchase of the retail and commercial business of Shell by a consortium led by Ion Equity marks the arrival in the big time of the corporate finance house founded in 2000.
Neil O'Leary and Joe Devine, the founders of Ion, identified the deal, formed the Topaz consortium that included Emo Oil and took “a chunk'‘ of the equity in the firm, according to industry sources.

The terms of the deal were not disclosed, and O'Leary could not be contacted for comment.
The deal sees Topaz take over a business with turnover of more than €1 billion. It comprises Shell's six oil importation facilities, 35 local distribution depots, 55 retail service stations and the supply of products to 105 independently-owned service stations.

A relative minnow in the corporate finance sector, Ion has proved willing to take risks. Despite launching just as the technology downturn hit, it made its money and reputation by raising money for a range of private technology firms in difficult markets.
It also has stakes in technology firms including Corvil and Similarity Systems.
Ion made headlines in 2002 when it put together a consortium to buy Usit, the troubled travel firm. It bought a third of the company for €2.5 million and made its money back in eight months.

“If it was an easy deal, someone else would have done it,” O'Leary said at the time.
Usit quickly returned to profitability after the deal, and, earlier this year, sold three of its hostels for more than €20 million.
Ion also has stakes in eNet, the private firm building a national broadband network, and in facilities management firm Vector. It has also opened a London office and has advised on funding and merger and acquisition deals in Britain, Germany and Israel.

Last year, O'Leary told The Sunday Business Post that Ion had advised on about 30 deals worth more than €300 million since its foundation. Its deal-flow has remained strong: it recently made about $1 million in fees after advising a British firm on a $21 million funding.

O'Leary and Devine are the major shareholders in Ion, and some staff, including director Ulric Kenny, also have stakes.
Industry sources said that the Shell deal would make larger advisory firms sit up and take notice of Ion.

“We are not afraid to take calculated risks and borrow money to back our judgment,” O'Leary said last year. Last week's purchase of Shell, which he described in a statement as “a unique opportunity to acquire a premium business with huge potential'‘, bears that out.

by screen shooter Sun Jul 17, 2005 23:58

as of 22:55pm 17 July 2005
news.google.com lists
indymedia.ie as the number three news story
when 'shell oil' is searched.

beating Sunday Business Post, IrishExaminer.com and the Irish Times

http://news.google.com/news?hl=en&ned=us&q=shell+oil&btnG=Search+News

gotta brag, sometimes

by * Sun Jul 17, 2005 15:42

Qui Bono? For a no royalties expenses written off against minimal corporation tax deal in mayo - shell benefits and it's closest affiliates in gas supply in Ireland and the uk benefit.

Who are it's closest affiliates in this in Uk Ireland?

DCC

DCC are the Economic elites in Ireland.

by * Sun Jul 17, 2005 15:28

The only answer that makes any logical sense to the qui bono question to me (and our government are nothing if not logical when it comes to asset stripping and putting interests of corporate / business elites above public interest) is that local economic elites will benefit further down the pipelines. The state will get no royalties but through these sweetheart deals the irish economic elite will extract their own royalties literally at the pumps.

No wonder there is no political appetite to question the motivations of ray burke at the time of the original deals.

I can't find anything that resembles a smoking gun but I would love to know who exactly this crew called TOPAZ are and who exactly is involved. They are imho the best bet for a missing link between shell oil and the FF government's attitude to this.

DCC (who Own Emo Oil Which One of the Ion Guys used to run) (Connected to the whole barrel of apples from crh to banks to independent newspapers to ibec - http://www.dcc.ie/dcc/about_us/directors.html ) is involved. Ion are involved in building a cutout. The cutout is called topaz. Topaz/Ion are connected laterally in a batch of ways to shell oil. I mean it's not even funny: I check one name to see if there are existing connections and I get this:

Secretary Tim Dolphin, Irish Shell
Treasurer
Ray Willis, Dublin Insitute of Technology
Council Members
Joe Devine, Ion Equity
Garry O'Dea, Irish Continental Group plc
Joe Kearns, QED Recruitment

http://www.fea.ie/

Now will some journalist who is paid to do this shit do some research for fucks sake.

The government is giving away national assets and they are not doing it for a pat on the head from andy pyle.

let's keep following the pipes and money. I bet it all leads to the Grand canal.

by * Sun Jul 17, 2005 14:11

The shares of Royal Dutch/Shell Group fell in London, heading for their worst week since the January 2004 disclosure that the company's oil and gas reserves had been overstated for years.

The reason now: soaring costs and project delays from Russia to Nigeria. Shell, Europe's second-largest oil company, yesterday said an oil and gas development in Russia's Far East is behind schedule and may cost $20 billion, twice original estimates. The Sakhalin-2 joint venture is central to Shell's strategy of boosting reserves through internal projects, not acquisitions.

------

Shell shares in London lost as much as 11.5 pence, or 2.1 percent, and were down 7.5 pence at 541.5 pence as of 4:15 p.m. in London. Shell is down 4 percent this week. Royal Dutch/Shell next week plans to complete a merger of its two parent companies, Royal Dutch Petroleum Co. of The Hague and Shell Transport & Trading Co. of London, which for almost a century have controlled the group but remained separate.

The weekly decline at Shell compares with a drop of 0.9 percent at Eni SpA of Italy and 0.2 percent at Total SA of France. BP Plc, Shell's closest competitor, is off 3.4 percent.

Not Till 2008

The Sakhalin venture, in which Shell is the biggest shareholder, won't start liquefied natural gas deliveries until summer 2008, instead of November 2007, and may cost ``in the order of $20 billion,'' double its original estimate, the company said yesterday. Last week it swapped part of its share in the venture for part of an undeveloped Russian oil field, prompting analysts to lower forecasts for Shell's production this decade.

by * Sun Jul 17, 2005 14:04

The parties and several third parties contend that there are demand side substitutes for heating oils, such as mains gas or LPG, although it is not clear that these are viable substitutes for a sufficient number of customers to constrain the prices of heating oils.  Although there are no alternatives for transport fuels, the parties submit the supply of heating oils and transport fuels are most appropriately considered together as supply side switching is easy and cheap.  In practice, most distributors supply both and tankers have separate compartments to allow simultaneous transport of both fuels.  However, there is no need to reach a definitive conclusion on this point as, regardless of the frame of reference considered, this transaction is not expected to result in a substantial lessening of competition.

by * Sun Jul 17, 2005 13:55

Flogas plc was founded in 1977 and is the second largest independent supplier of liquefied petroleum gas (LPG) in both Ireland and the United Kingdom. It manufactures and distributes liquefied petroleum gas, namely butane and propane, throughout Ireland and the United Kingdom and also distributes natural gas in the United Kingdom. The Group is 60.2% controlled by DCC Group.

(Flogas Plc People: Chairman - J.F. FLAVIN)

by * Sun Jul 17, 2005 13:44

During the twentieth century the concept of goodwill has changed significantly. In the earlier days goodwill was thought of as the good and valuable relationships of a proprietor of a business with his customers. The present concept is broader in that it encompasses many more intangible economic factors of a business enterprise and accountants now consider that goodwill results from the evaluation of the earning power of a business by investors.

From an accountant's perspective, goodwill appears in accounts of a company only when the company has purchased some intangible and valuable economic source. Intangibles such as patents and copyrights are examples of identifiable intangible assets. On the otherhand, intangibles such as favourable government regulations, outstanding credit ratings, superior management and good labour relations are examples of unidentifiable intangible assets. Goodwill comprises the complete set of unidentifiable intangible assets held by the reporting entity.

Generally, goodwill has appeared to be an umbrella concept embracing many features of a company's activities that could lead to superior earning power, such as excellent management, an outstanding workforce, effective advertising and market penetration.

by * Sun Jul 17, 2005 13:35

DCC ’s oil business grew strongly,benefiting
from good organic volume growth in Britain
and the Republic of Ireland.The scale of the
business was significantly increased by two
acquisitions during the year and DCC is now
the leading independent marketer of lpg and
oil products in both Britain and Ireland.In
October 2004,DCC acquired the trade,assets
and goodwill of the business of Shell Direct
UK,which supplies heating oils and transport
fuels to domestic,agricultural and small
commercial and industrial customers.

by * Sun Jul 17, 2005 13:26

Jim Flavin.

Also involved in The Wonderful Beneficial for De PEEpil Eircom Selloff

and

Former Head of AIB Venture Capital

by * Sun Jul 17, 2005 13:16

DCC is a leading branded marketer and distributor of liquefied petroleum gas (LPG) and oil products in Britain and Ireland.

In LPG, DCC supplies LPG (propane and butane) for domestic, commercial, transport and industrial uses under the Flogas, AltaGas and Ergas brands. DCC is a strong number two in the both the British and Irish LPG markets. DCC has increased its share of the larger British market significantly over recent years through excellent bolt-on acquisition activity.

In the oil market, DCC supplies heating oils, transport fuels, fuel oils to domestic, commercial, and agricultural customers. Oil is sold principally under the Emo, Cawoods, Fuel Services and Scottish Fuels brands. DCC is the leading oil distributor in Northern Ireland and in Scotland and is a leading independent oil distributor in the Republic of Ireland.

by * Sun Jul 17, 2005 12:23

Consortium to take over Shell's Irish business
Una McCaffrey

     
     
 
A consortium fronted by former Emo Oil managing director Danny Murphy has won the takeover battle for Shell Oil's Irish retail and commercial business.

The value of the deal agreed with Royal Dutch/Shell has not been disclosed but it is thought to have approached at least €200 million.

Four executives from corporate finance and private equity firm Ion Equity have joined with Mr Murphy to secure the high-profile takeover.

The consortium will buy Irish Shell through a new company called Topaz Distribution and Logistics, of which Mr Murphy will become chief executive.

The Ion Equity executives involved are: Neil O'Leary, Joe Devine, Ulric Kenny, Patrick Hogan and David Fewer.

Topaz has been backed by Anglo Irish Bank.

The purchase agreement brings to an end a lengthy auction process at Shell, which decided to sell the business almost a year ago. Completion of the sale is expected before the end of 2005.

Irish Shell is a substantial business, with turnover almost touching the €1 billion mark last year. It operates on both sides of the border and is active in oil, gas, diesel, kerosene, fuel oil and lubricants in all sectors of the energy market.

Topaz will be allowed to keep the Shell name and Shell will continue to supply fuel to the company. Irish Shell owns six oil importation depots at ports, including Dublin, Cork and Limerick, and has 35 local distribution depots across the country.

It also owns 55 retail service stations and supplies 105 independently-owned service stations.

A number of these service stations are located on valuable properties, such as sites at Stillorgan, Blackrock, Glasnevin and Dalkey in the Dublin area. Market observers believe Topaz could raise as much as €150 million by selling off selected properties.

Ion Equity chief executive Neil O'Leary, who will become chairman of the new company, said yesterday that the deal represented a "unique opportunity to acquire a premium business".

He said the company had "huge potential and a very strong and difficult-to-replicate infrastructure".

by googleer Fri Jul 15, 2005 21:12

The 800km pipeline at the centre of the scheme will traverse 21 seismic faults in some of the world's most earthquake-prone territory. It will cross more than 1,000 rivers and streams including dozens of sensitive salmon spawning grounds. Campaigners believe the threat of a serious oil spill on land or a tanker disaster in the seas that surround Sakhalin would wreck the fisheries from which a third of islanders make their living. Worst hit would be Sakhalin's 3,500 indigenous people.

Many also believe that while Shell will make billions from the project, the people of Sakhalin - whose average income is just £28 a week - will be left with nothing but a ruined landscape.

More than 200 lorries a day thunder past the dachas on their way to deliver materials to Shell's LNG plant rapidly rising on the shores of Aniva Bay at Prigorodnoe. Mr Tikhonov says the dust storms they kick up are making people ill, polluting wells and ruining crops. Much of the public beach where families used to swim and gather mussels on the shore is now being built on. A local museum director, Elena Lopukhina, is furious. "Our losses are immeasurable," she says. "I have lost the opportunity to drink from the streams that I always did. I cannot go to the beach, which I loved. When this project is over all that will be left for us Russians is a pipeline that will cost a lot more to dig up than it did to bury."

    The deal for the project was among the first of the post-Soviet era, allowing Western and private companies to exploit eastern Russia's vast resources. The fallout from liberalisation and the huge wealth it unleashed into private hands continues to resonate in Russia - witness the sentencing last week of the former Yukos oil chief Mikhail Khodorkovsky.

    Shell assumed majority control of the Sakhalin project from the US oil company Marathon in 2000. But according to an energy economist, Ian Rutledge, the original profit-sharing agreement was "particularly disadvantageous" to the Russians. He compares aspects of the deal to the "oil concessions signed by Middle East rulers at the beginning of the 20th century".