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Iraq National Oil Company

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The Iraq National Oil Company ( INOC ) was founded in 1966 by the Iraqi government . It was empowered to operate all aspects of the oil industry in Iraq except for refining which was already being run by the Oil Refineries Administration (1952) and local distribution which was also already under government control.

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104-699: In 1961 Iraq passed Public Law 80 whereby Iraq expropriated 95% of the Iraq Petroleum Company 's concessions , and went on to announce the intent to form the INOC in 1964. In 1967 Iraq and the Soviet Union signed the Iraq-Soviet Protocol which committed the Soviet Union to give technical and financial aid to the company. In 1967 and 1968 the company's purview was expanded to include areas expropriated from

208-556: A Ferranti Mark 1* , was assembled and used at the Shell laboratory in Amsterdam. In 1970, Shell acquired the mining company Billiton , which it subsequently sold in 1994. In 1989, Shell redesigned a $ 3-billion natural gas platform in the North Sea , raising its height one to two meters, to accommodate an anticipated sea level rise due to global warming . In the 1990s, protesters criticised

312-666: A 40 km (25 mi)-wide strip on either side of its proposed railway in Mesopotamia. On 28 June 1914, the Turkish grand vizier confirmed the promise of a concession to TPC, but the outbreak of World War I ended TPC's plans. When the Ottoman Empire was broken up in the aftermath of the war, the question of shareholding in TPC became a major issue at the 1920 San Remo conference , where the future of all non- Turkish and Arab -majority areas of

416-572: A US$ 20 billion gas project that was to be constructed in the US state of Louisiana . A new CEO Ben van Beurden was appointed in January 2014, prior to the announcement that the corporation's overall performance in 2013 was 38 percent lower than in 2012—the value of Shell's shares fell by 3 percent as a result. Following the sale of the majority of its Australian assets in February 2014, the corporation plans to sell

520-636: A compromise solution but the Ba'athist government rejected the offer and, on 1 June 1972, nationalized IPC operations, which were taken over by the Iraq National Oil Company. The Kirkuk field still forms the basis for northern Iraqi oil production. Kirkuk has over 10 billion barrels (1.6 km ) of remaining proven oil reserves . The Jambur, Bai Hassan, and Khabbaz fields are the only other currently producing oil fields in northern Iraq. While Iraq's northern oil industry remained relatively unscathed during

624-411: A fee for its parent companies, based on their shares. The company itself was only allowed to refine and sell to Iraq's internal market, in order to prevent any competition with the parent companies. The agreement, known as Red Line Agreement after a red line was drawn around the former boundaries of the Ottoman Empire (with the exception of Kuwait), effectively bound the partners to act together within

728-581: A full-scale merger or takeover of either of the two companies. The Dutch company, Koninklijke Nederlandsche Petroleum Maatschappij at The Hague , was in charge of production and manufacture. The British Anglo-Saxon Petroleum Company was based in London, to direct the transport and storage of the products. In 1912, Royal Dutch Shell purchased the Rothschilds ' Russian oil assets in a stock deal. The Group's production portfolio then consisted of 53 percent from

832-414: A fund that would go towards humanitarian aid to Ukraine. On 8 March, Shell announced that it would stop buying Russian oil and gas and close its service stations in the country. In 2022, the major oil and gas companies, including Shell, reported sharp rises in interim revenues and profits. In fact, this rise in profit for Shell was so sharp, that 2022 was the company's best year, as Shell recorded double

936-679: A further US$ 15 billion worth of assets in the period leading up to 2015, with deals announced in Australia, Brazil and Italy. Shell announced on 8 April 2015 it had agreed to buy BG Group for £47 billion (US$ 70 billion), subject to shareholder and regulatory approval. The acquisition was completed in February 2016, resulting in Shell surpassing Chevron Corporation and becoming the world's second largest non-state oil company. On 7 June 2016, Shell announced that it would build an ethane cracker plant near Pittsburgh , Pennsylvania , after spending several years doing an environmental cleanup of

1040-459: A loss of $ 21.7 billion in 2020 due to the COVID-19 pandemic, despite reducing its operating expenses by 12%, or $ 4.5 billion, according to a Morningstar analysis cited by Barron's . In November 2021, Shell announced that it is planning to relocate their headquarters to London, abandon its dual share structure, and change its name from Royal Dutch Shell plc to Shell plc. The company's name change

1144-407: A monthly magazine, entitled Iraq Petroleum , from August 1951 until April/May 1957. An insert in the January 1957 edition read "In the light of present circumstances it has been found necessary to restrict the production of Iraq Petroleum and... publication will be bi-monthly until further notice." An in-house company magazine, The Crescent , continued in print until the 1970s. The IPC Newsletter ,

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1248-599: A quarterly magazine for IPC pensioners, was issued between 1974 and 2014. Royal Dutch Shell Shell plc is a British multinational oil and gas company headquartered in London , England. Shell is a public limited company with a primary listing on the London Stock Exchange (LSE) and secondary listings on Euronext Amsterdam and the New York Stock Exchange . A core component of Big Oil , Shell

1352-493: A self-supporting unit without subsidies from other parts of the company. Traditionally, Shell was a heavily decentralised business worldwide (especially in the downstream) with companies in over 100 countries, each of which operated with a high degree of independence. The upstream tended to be far more centralised with much of the technical and financial direction coming from the central offices in The Hague . The upstream oil sector

1456-639: A series of ground-breaking explorations in southern Arabia during these years. The failure of IPC to secure concessions in Bahrain and Saudi Arabia should not obscure the fact that elsewhere in the Middle East the company was successful in closing the "open door" of commercial opportunity to outsiders. The principal competitors for concessions were British Oil Development Co. Ltd.(BOD), and SOCAL. When BOD became interested in concessions in northern Iraq, IPC eventually bought them out. So successful were its efforts that by

1560-413: A single-unit partnership for business purposes. The terms of the merger gave 60 percent stock ownership of the new group to Royal Dutch, and 40 percent to Shell. Both became holding companies for Bataafsche Petroleum Maatschappij , containing the production and refining assets, and Anglo-Saxon Petroleum Company, containing the transport and storage assets. National patriotic sensibilities would not permit

1664-470: A type of snail shell ), to enter this market; by 1907 the company had a fleet. Although for several decades the company had a refinery at Shell Haven on the Thames, there is no evidence of this having provided the name. The Shell logo is one of the most familiar commercial symbols in the world. This logo is known as the " pecten " after the sea shell Pecten maximus (the giant scallop ), on which its design

1768-531: Is active in every area of the oil and gas industry, including exploration , production , refining , transport , distribution and marketing , petrochemicals , power generation , and trading . Shell has operations in over 99 countries, produces around 3.7 million barrels of oil equivalent per day and has around 44,000 service stations worldwide. As of 31 December 2019, Shell had total proved reserves of 11.1 billion barrels (1.76 × 10  m ) of oil equivalent. Shell USA , its principal subsidiary in

1872-512: Is also commonly known as the "exploration and production" sector. Downstream operations, which now also includes the chemicals business, generate the majority of Shell's profits worldwide and is known for its global network of more than 40,000 petrol stations and its various oil refineries . The downstream business, which in some countries also included oil refining , generally included a retail petrol station network, lubricants manufacture and marketing, industrial fuel and lubricants sales, and

1976-476: Is based. The yellow and red colours used are thought to relate to the colours of the flag of Spain , as Shell built early service stations in California , previously a Spanish colony . The current revision of the logo was designed by Raymond Loewy in 1971. The slash was removed from the name "Royal Dutch/Shell" in 2005, concurrent with moves to merge the two legally separate companies (Royal Dutch and Shell) to

2080-522: Is linked to The "Shell" Transport and Trading Company. In 1833, the founder's father, Marcus Samuel Sr., founded an import business to sell seashells to London collectors. When collecting seashell specimens in the Caspian Sea area in 1892, the younger Samuel realised there was potential in exporting lamp oil from the region and commissioned the world's first purpose-built oil tanker , the Murex (Latin for

2184-496: Is the second largest investor-owned oil and gas company in the world by revenue (after ExxonMobil ), and among the world's largest companies out of any industry. Measured by both its own emissions, and the emissions of all the fossil fuels it sells, Shell was the ninth-largest corporate producer of greenhouse gas emissions in the period 1988–2015. Shell was formed in April 1907 through the merger of Royal Dutch Petroleum Company of

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2288-505: The Argentinian town of Magdalena, Buenos Aires , the Shell tanker Estrella pampeana collided with a German cargo ship , emptying its contents into the lake, polluting the environment, drinkable water, plants and animals. Over a decade after the spill, a referendum held in Magdalena determined the acceptance of a US$ 9.5 million compensatory payout from Shell. Shell denied responsibility for

2392-711: The Ba'athist government in Iraq nationalized the IPC, and its operations were taken over by the Iraq National Oil Company . The company "Iraq Petroleum Company" still remains extant, although only in paper form. One associated company – the Abu Dhabi Petroleum Company (ADPC, formerly Petroleum Development (Trucial Coast) Ltd) – also continues with its original shareholding intact. The related Iraq Petroleum Group

2496-771: The East Indies , 29 percent from the Russian Empire , and 17 percent from Romania . During the First World War , Shell was the main supplier of fuel to the British Expeditionary Force . It was also the sole supplier of aviation fuel and supplied 80 percent of the British Army's TNT . It also volunteered all of its shipping to the British Admiralty . The German invasion of Romania in 1916 saw 17% of

2600-587: The New York Stock Exchange on 18 November 2005. The shares of the company were issued at a 60/40 advantage for the shareholders of Royal Dutch in line with the original ownership of the Shell Group. During the 2009 Iraqi oil services contracts tender , a consortium led by Shell (45%) and which included Petronas (30%) was awarded a production contract for the "Majnoon field" in the south of Iraq, which contains an estimated 12.6 billion barrels (2.00 × 10  m ) of oil. The "West Qurna 1 field" production contract

2704-692: The Pan-American Petroleum and Transport Company , and Atlantic Richfield Co. Shares were held in the following proportions: 23.75% each to the Anglo-Persian Oil Company , Royal Dutch/Shell, the Compagnie Française des Pétroles ( CFP ), and the NEDC; the remaining 5% went to Calouste Gulbenkian. TPC was to be organized as a nonprofit company, registered in Britain, that produced crude oil for

2808-464: The Paradise Papers , a set of confidential electronic documents relating to offshore investment , revealed that Argentine Energy Minister Juan José Aranguren was revealed to have managed the offshore companies 'Shell Western Supply and Trading Limited' and 'Sol Antilles y Guianas Limited', both subsidiaries of Shell. One is the main bidder for the purchase of diesel oil by the government through

2912-487: The Russian invasion of Ukraine and in the midst of the growing boycott of Russian economy and related divestments , Shell bought a cargo of discounted Russian crude oil. The next day, following criticism from Ukraine's Foreign Minister Dmytro Kuleba , Shell defended the purchase as a short term necessity, but also announced that it intended to reduce such purchases, and it would put profits from any Russian oil it purchases into

3016-684: The Sultan of Muscat that would cover the entire region of the Sultanate. IPC, however, failed to discover oil in the Sultanate's region, which was limited to the coastal area of Oman, and informed the Sultan that oil is more likely to exist in the interior region of Oman. The Treaty of Seeb provided autonomous rule to the Omanis who resided in the interior region of Oman, which was called the Imamate of Oman , by stating that

3120-581: The Sultan of Muscat . In 1952, IPC offered financial support to raise an armed force that would assist the Sultan in occupying the interior region of Oman , an area that geologists believed to be rich in oil. This led to the 1954 outbreak of the Jebel Akhdar War in Oman that lasted for more than 5 years. Around 1952, Shell was the first company to purchase and use a computer in the Netherlands. The computer,

3224-532: The Turkish Petroleum Company ( TPC ), is an oil company that had a virtual monopoly on all oil exploration and production in Iraq between 1925 and 1961. It is jointly owned by some of the world's largest oil companies and headquartered in London , England. However, today it is only a paper entity with historical rights and plays no part in the modern development of Middle Eastern oil. In June 1972,

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3328-412: The 1925/6 season, an international geological team, including representatives from the shareholding companies and an American contingent, conducted a comprehensive survey of Iraq. They identified drilling locations at Pulkanah (two wells), Khashm al Ahmar, Injanah, Qaiyarah, and Kirkuk. Geologist J.M. Muir located the well at Baba Gurgur, just north of Kirkuk. Drilling commenced, and on October 14, 1927, oil

3432-546: The Aden Protectorates), Petroleum Development (Western Arabia) Ltd. In 1933, IPC joined negotiations for an oil concession in Al-Hasa province, Saudi Arabia, bidding against Standard Oil of California (SOCAL, later renamed Chevron). Represented by Stephen Hemsley Longrigg , the company's bid failed when it offered payment in rupees rather than the gold that King Abdul-Aziz (also known as Ibn Saud ) desired. SOCAL gained

3536-619: The American partners broke free. During the period, IPC monopolized oil exploration inside the Red Line; excluding Saudi Arabia and Bahrain, where ARAMCO (formed in 1944 by renaming of the Saudi subsidiary of Standard Oil of California (Socal)) and Bahrain Petroleum Company (BAPCO) respectively held controlling position. The San Remo conference had stipulated that Iraqis should be allowed 20% of

3640-535: The Anglo-Persian Oil Company, Royal Dutch/Shell and Standard Oil had access to major sources of crude oil outside Iraq, and therefore wanted to hold the Iraqi concessions in reserve, whilst CFP and the other companies pushed for rapid development of Iraqi oil as they had limited crude oil supplies. These competing interests delayed the development of the Iraqi fields, and IPC's concession eventually expired because

3744-621: The British and the Iraqis who preferred a southern route, terminating at Haifa , in what then was Palestine . The issue was settled by a compromise which provided for the construction of two pipelines, each with a throughput capacity of 2,000,000 tons a year. The length of the Northern line would be 532 miles (856 km), that of the Southern line ( Mosul-Haifa oil pipeline ) 620 miles (1,000 km). In 1934,

3848-520: The Gulf War. IPC has ceased operations, but the company "Iraq Petroleum Company Limited" still remains extant as a name on paper, and one of its surviving associated companies – Abu Dhabi Petroleum Company (ADPC), formerly Petroleum Development (Trucial Coast) Limited – continued with the original shareholding intact until January 2014. ADPC still holds 40% of the onshore concession in Abu Dhabi, with

3952-513: The INOC with the oil ministry , which became the direct operator in the industry as well as its regulator. At an operational level, the single national-level company was broken into a series of regional companies, the largest among them being North Oil Company , based in Kirkuk , and South Oil Company , based in Basra . Iraq Petroleum Company The Iraq Petroleum Company ( IPC ), formerly known as

4056-610: The Iran-Iraq War, an estimated 60% of the facilities in southern and central Iraq were damaged in the Gulf War . Post-1991 fighting between Kurdish and Iraqi forces in northern Iraq resulted in temporary sabotage of the Kirkuk field's facilities. In 1996, production capacity in northern and central Iraq was estimated at between 0.7 and 1 million barrels (110,000 to 160,000 m³) per day, down from around 1.2 million barrels (190,000 m³) per day before

4160-607: The Iraq Government tried to open up the country to competition, the company taking up the new concession was bought out by IPC and, under the name of the Mosul Petroleum Company, was duly gathered into the IPC 'family' of associated companies (see below). The company also got the concession rights to southern Iraq in 1938, and founded the Basrah Petroleum Company (BPC) as their wholly owned subsidiary to develop

4264-670: The Iraq Petroleum Company. Unlike the National Iranian Oil Company , the INOC was forbidden from entering into partnerships or granting concessions to foreign oil companies . Though there was discussion of allowing the French Compagnie Française de Pétroles , partners in IPC from whom the North Rumaila Field had been appropriated, to enter into a contract to develop the field, ultimately, with

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4368-456: The Iraqi government criticized the IPC and used the IPC as a central piece of their anti-western propaganda. The Soviet-Iraqi agreement of 1969 emboldened the Iraqi government and in 1970 they made a list of demands including ownership of 20% of the company's assets and more control. The IPC by this time was taking the Iraqi government very seriously and made some huge concessions. They agreed to increase oil production substantially and also increase

4472-401: The Iraqi monarch was murdered. He ruled the country as Prime Minister of Iraq until his downfall and death in 1963. Before the coup, he used the fact that the IPC was producing oil for western nations rather than for the benefit of Iraq citizens as one of his main points of contention with the Iraqi government. Once in power, he was critical of several aspects of the IPC. First, he was critical of

4576-521: The Netherlands and The "Shell" Transport and Trading Company of the United Kingdom. The combined company rapidly became the leading competitor of the American Standard Oil and by 1920 Shell was the largest producer of oil in the world. Shell first entered the chemicals industry in 1929. Shell was one of the " Seven Sisters " which dominated the global petroleum industry from the mid-1940s to

4680-484: The Sultanate "should not interfere in their [Imamate] internal affairs". IPC offered financial support to the Sultan in order to raise a military force that would occupy the Imamate's region so that IPC would gain access to the possible oil reserves. The Sultanate, backed by the British government and the financial support received from IPC, attacked the interior of Oman on 25 October 1954 triggering Jebel Akhdar War . IPC

4784-548: The TPC, but it would take several years until the negotiations were completed. In 1925, the Turkish Petroleum Company (TPC) obtained a concession to explore for oil in Iraq. The agreement stipulated that the Iraqi government would receive royalties for each ton of oil extracted, based on the oil companies' profits and not payable for the first 20 years. The concession allowed the company to select 24 rectangular plots of 8 square miles (21 km²) each for drilling. During

4888-647: The Theatre of Operations of the Iraq Petroleum Company Limited and its Associated Companies authored by Stephen Hemsley Longrigg. The IPC Film Unit produced a number of short films, most notably The Third River , a film produced in 1952 about operations around the Iraq-Mediterranean pipeline, and Rivers of Time , produced in 1957, about the history of Mesopotamia. Ageless Iraq was an historical film made for IPC by British Pathé. The company published

4992-580: The United States, is one of its largest businesses. Shell holds 44% of Raízen , a publicly-listed joint venture with Cosan , which is the third-largest Brazil -based energy company. In addition to the main Shell brand, the company also owns the Jiffy Lube , Pennzoil and Quaker State brands. Shell is a constituent of the FTSE 100 Index and had a market capitalisation of US$ 199 billion on 15 September 2022,

5096-536: The amount of crude oil extracted, getting more Iraqis involved in the process of producing the oil and getting more royalties. In 1952, terms that were more generous to the Iraqi government were negotiated. These terms were largely based on the far more lucrative terms of the Saudi-Aramco "50/50" agreement of December 1950 . One could argue that a determinant in these negotiations was the friendly atmosphere in which they were conducted. This atmosphere did not continue to

5200-454: The appointment of Jorma Ollila , chairman and CEO of Nokia at the time, to succeed Aad Jacobs as the company's non-executive chairman on 1 June 2006. Ollila is the first Shell chairman to be neither Dutch nor British. Other non-executive directors include Maarten van den Bergh , Wim Kok , Nina Henderson, Lord Kerr , Adelbert van Roxe, and Christine Morin-Postel. Since 3 January 2014, Ben van Beurden has been CEO of Shell. His predecessor

5304-410: The companies failed to meet certain performance requirements, such as the construction of pipelines and shipping terminals. The concession was renegotiated in 1931, however, giving the company a 70-year concession on an enlarged 83,200 square kilometres (32,100 sq mi) area east of the Tigris River . In return, the Iraqi government demanded, and received, additional payments and loans, as well as

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5408-501: The company if they wanted to invest in it, but the existing shareholders successfully resisted Iraqi efforts to participate, despite pressure by the British government to accept Iraqi shareholders. In 1929 the TPC was renamed the Iraq Petroleum Company. By 1934, the NEDC comprised only two shareholders, Standard Oil of New Jersey and Socony, which had merged with the Vacuum Oil Company to form Socony-Vacuum in 1931. The original concession of 14 March 1925 covered all of Iraq, but IPC

5512-477: The company's environmental record, particularly the possible pollution caused by the proposed disposal of the Brent Spar platform into the North Sea. Despite support from the UK government, Shell reversed the decision under public pressure but maintained that sinking the platform would have been environmentally better. Shell subsequently published an unequivocal commitment to sustainable development , supported by executive speeches reinforcing this commitment. Shell

5616-442: The concession and, joined by the Texas Oil Company in 1936, went on to discover oil at Dammam through its subsidiary, California-Arabian Standard Oil Company (Casoc) in 1938. Thereafter, IPC concentrated its efforts in Arabia in developing its Qatar oil concession (oil discovered 1939), Abu Dhabi (oil discovered in 1959), Oman (see Petroleum Development Oman ) and the Aden Protectorates (in today's Yemen ). IPC personnel carried out

5720-406: The core competencies on which the company was founded. Similar competencies were required for natural gas, which has become one of the most important businesses in which Shell is involved, and which contributes a significant proportion of the company's profits. While the vertically integrated business model provided significant economies of scale and barriers to entry , each business now seeks to be

5824-446: The cost of a planned $ 28bn capital spending programme. Shell invited buyers to submit indicative bids, due by 22 March, with a plan to raise $ 2–3bn from the sale. In June 2010, Shell agreed to acquire all the business of East Resources for a cash consideration of $ 4.7 billion. The transaction included East Resources' tight gas fields. Over the course of 2013, the corporation began the sale of its US shale gas assets and canceled

5928-416: The departure of the chairman Philip Watts . A lawsuit resulted in the payment of $ 450 million to non-American shareholders in 2007. As a result of the scandal, the corporate structure was simplified. Two classes of ordinary shares, A (code RDSA) and B (code RDSB), identical but for the tax treatment of dividends, were issued for the company. In November 2004, following a period of turmoil caused by

6032-448: The end of 1944 IPC was operating in over 467,055 square miles (1,209,670 km ) of territory, an area larger in size than the states of Texas, Oklahoma, Arkansas, and Louisiana combined. In addition, IPC attempted, though without success, to extend further its area of operations by seeking concessions or exploration permits in Turkey and in the neutral zones of Kuwait and Saudi Arabia. In 1937, IPC signed an oil concession agreement with

6136-482: The firm operated as a dual-listed company , whereby the British and Dutch companies maintained their legal existence and separate listings but operated as a single-unit partnership. From 2005 to 2022, the company had its headquarters in The Hague, its registered office in London and had two types of shares (A and B). In January 2022, the firm merged the A and B shares, moved its headquarters to London, and changed its legal name to Shell plc . The Royal Dutch Shell Group

6240-563: The former Ottoman Empire were mostly decided. A rising demand for petroleum during the war had demonstrated to the big powers the importance of having their own sources of oil. Since one of the original partners of TPC had been German , the French demanded this share as the spoils of war. This was agreed upon by the San Remo Oil Agreement , much to the annoyance of the Americans, who felt excluded from Middle Eastern oil and demanded an "open door". After prolonged and sometimes sharp diplomatic exchanges, U.S. oil companies were permitted to buy into

6344-430: The group's worldwide production destroyed. In 1919, Shell took control of the Mexican Eagle Petroleum Company and in 1921 formed Shell-Mex Limited, which marketed products under the "Shell" and "Eagle" brands in the United Kingdom. During the Genoa Conference of 1922 Royal Dutch Shell was in negotiations for a monopoly over Soviet oilfields in Baku and Grosny , although the leak of a draft treaty led to breakdown of

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6448-477: The help of the Soviet Union, the INOC opened the field on 7 April 1972. In 1972 nationalization was complete. In its first years of sole control, INOC managers succeeded in raising production in Iraq from 1.4 million barrels per day (220,000 m/d) to over 3 million barrels per day (480,000 m/d) in 1980. But the outbreak of war with Iran that year severely hit capacity. In April 1987, under newly appointed oil President Asfhaq ul Rasheed, Decree 267 merged

6552-435: The largest of any company listed on the LSE and the 44th-largest of any company in the world. By 2021 revenues, Shell is the second-largest investor-owned oil company in the world (after ExxonMobil ), the largest company headquartered in the United Kingdom, the second-largest company headquartered in Europe (after Volkswagen ), and the 15th largest company in the world. Until its unification in 2005 as Royal Dutch Shell plc ,

6656-457: The legal name) was a British company, founded in 1897 by Marcus Samuel, 1st Viscount Bearsted , and his brother Samuel Samuel . Their father had owned an antique company in Houndsditch , London, which expanded in 1833 to import and sell seashells, after which the company "Shell" took its name. For various reasons, the new firm operated as a dual-listed company , whereby the merging companies maintained their legal existence but operated as

6760-519: The majority 60% held by the Abu Dhabi National Oil Company (ADNOC) on behalf of the Abu Dhabi Government. Operations are carried out by the local operating company – the Abu Dhabi Company for Onshore Oil Operations (ADCO) – jointly owned by ADNOC, and the ADPC shareholders: BP , Royal Dutch Shell , ExxonMobil , TotalEnergies and Partex ; reflecting the historical make-up of the Iraq Petroleum Company. The Abu Dhabi onshore oil concession expired in January 2014. Abu Dhabi Petroleum Company Limited

6864-412: The mid-1970s. In 1964, Shell was a partner in the world's first commercial sea transportation of liquefied natural gas (LNG). In 1970, Shell acquired the mining company Billiton , which it subsequently sold in 1994 and now forms part of BHP . In recent decades gas has become an increasingly important part of Shell's business and Shell acquired BG Group in 2016. Shell is vertically integrated and

6968-443: The monetary arrangement between the IPC and the government. He also did not appreciate the monopoly that the IPC had been granted. However the economic situation at the time did not permit Qasim to nationalize the IPC – western nations had boycotted Iranian oil when Mossadeq nationalized its oil company and could be expected to do the same in this case. (It is likely that nationalization would have been Qasim's favored route had he had

7072-406: The necessary capabilities). Further, Iraqis lacked the technical and managerial capabilities to run the IPC. Qasim needed the oil revenues to run his government and to keep the military satisfied. Therefore, Qasim resorted to many other tactics including increasing transit rates at Basra by 1,200%. In response, the IPC stopped producing oil that used Basra as a shipping point. The ensuing confrontation

7176-430: The negotiations held between the IPC and revolutionary governments that followed the overthrow of the Hashemite monarchy in 1958. Relations between the two can be examined on two major factors. First, oil was a vital part of the Iraqi economy. Because of this, the IPC had a huge impact on the amount of revenue that the government generated and thus had a certain amount of influence over the government. The second major factor

7280-426: The pipelines were completed from Kirkuk to Al Hadithah , and from there, to both Tripoli and Haifa; the Kirkuk Field was brought online the same year. Only in 1938, nine years after the discovery, did IPC begin to export oil in significant quantities. The Kirkuk production averaged 4 million tons per year until World War II , when restricted shipping in the Mediterranean forced down the production sharply. Although

7384-471: The price of its crude oil in certain areas. They also offered an advance payment on royalties. However this was not enough for the Iraqi government and they issued a new set of demands in November 1970 which essentially involved more Iraqi control of operations and more Iraqi profit-taking. Dissatisfied with the IPC's unwillingness to negotiate on Iraq's terms, the Iraqi government gave the IPC an ultimatum with similar demands in May 1972. The IPC tried to offer

7488-552: The profits from 2021, and the highest profit in its entire history. In November 2024, Shell won a case in the Hague court of appeal against Friends of the Earth which would have required Shell to cut its carbon emissions by 45%, in line with the Paris climate accords . The key trends of Shell are (as at the financial year ending 31 December): On 4 August 2005, the board of directors announced

7592-615: The promise that IPC would complete two oil pipelines to the Mediterranean by 1935—something CFP had demanded for a long time, in order to get its share of the oil quickly to France. Different routes and terminal locations on the Mediterranean coast were sought by the French, who favored a northern route through Syria and Lebanon terminating at the city of Tripoli on the Lebanese coast, and

7696-495: The proposed plant's site. In January 2017, Shell agreed to sell £2.46bn worth of North Sea assets to oil exploration firm Chrysaor. In 2017, Shell sold its oil sands assets to Canadian Natural Resources in exchange of approximately 8.8% stake in that company. In May 2017, it was reported that Shell plans to sell its shares in Canadian Natural Resources fully exiting the oil sands business. On 5 November 2017,

7800-438: The red line. The writer Stephen Hemsley Longrigg, a former IPC employee, noted, "[T]he Red Line Agreement, variously assessed as a sad case of wrongful cartelization or as an enlightened example of international co‑operation and fair-sharing, was to hold the field for twenty years and in large measure determined the pattern and tempo of oil development over a large part of the Middle East". The Agreement lasted until 1948 when two of

7904-631: The remoter parts of its concession areas. During the Hashemite Monarchy (1932–58) , there were no serious issues between the IPC and the Iraqi government as the Hashemites were extremely pro-west. In fact, they had been installed by the British, and therefore tensions were minimized. They were dependent on the British militarily and had essentially pledged allegiance to them through the Baghdad Pact . The Hashemites' main disputes centered on increasing

8008-451: The revelation that Shell had been overstating its oil reserves , it was announced that the Shell Group would move to a single capital structure, creating a new parent company to be named Royal Dutch Shell plc, with its primary listing on the LSE, a secondary listing on Euronext Amsterdam , its headquarters and tax residency in The Hague , Netherlands and its registered office in London. The company

8112-426: The same period the previous year. On 30 September 2020, the company said that it would cut up to 9,000 jobs as a result of the economic effects caused by the pandemic and announced a "broad restructuring". In December 2020, Shell forecast another write-down of $ 3.5-4.5 billion for the fourth quarter due to lower oil prices, following $ 16.8 billion of impairment in the second quarter. In February 2021, Shell announced

8216-538: The single legal entity which exists today. On 15 November 2021, Royal Dutch Shell plc announced plans to change its name to Shell plc. Shell is organised into four major business groupings: Shell's primary business is the management of a vertically integrated oil company. The development of technical and commercial expertise in all stages of this vertical integration, from the initial search for oil (exploration) through its harvesting (production), transportation, refining and finally trading and marketing established

8320-508: The southern region of Iraq. Three issues caused protracted negotiations among the partner groups of IPC: As the Red Line Agreement defined the company's sphere of operations well beyond the boundaries of Iraq, IPC's shareholders were keen to look for oil elsewhere in the Middle East. They created associated companies, one for each territory to be explored. These companies were collectively known as "The IPC Group". They would obtain from

8424-643: The sovereign power an exploration licence covering simple exploration over a defined geographical area, or a concession permitting exploration and the production of oil. By 1948, the company had created 12 companies with concessions or exploration licences: Petroleum Development (Cyprus Ltd), Lebanon Petroleum Company Ltd, Petroleum Development (Palestine) Ltd, Syrian Petroleum Company Ltd, Trans-Jordan Petroleum Company Ltd, Mosul Petroleum Company Ltd, Basrah Petroleum Company Ltd, Petroleum Development (Qatar) Ltd, Petroleum Development (Trucial Coast) Ltd, Petroleum Development (Oman and Dhofar) Ltd, Petroleum Concessions Ltd (for

8528-426: The spill, but an Argentine court ruled in 2002 that the corporation was responsible. In 2002, Shell acquired Pennzoil-Quaker State through its American division for $ 22 USD per share, or about $ 1.8 billion USD. Through its acquisition of Pennzoil, Shell became a descendant of Standard Oil . With its acquisition, Shell inherited multiple auto part brands including Jiffy Lube , Rain-X , and Fix-a-Flat . The company

8632-572: The state owned CAMMESA (Compañía Administradora del Mercado Mayorista Eléctrico). On 30 April 2020, Shell announced that it would cut its dividend for the first time since the Second World War , due to the oil price collapse following the reduction in oil demand during the COVID-19 pandemic . Shell stated that their net income adjusted for the cost of supply dropped to US$ 2.9 billion in three months to 31 March. This compared with US$ 5.3 billion in

8736-568: The talks. In 1929, Shell Chemicals was founded. By the end of the 1920s, Shell was the world's leading oil company, producing 11 percent of the world's crude oil supply and owning 10 percent of its tanker tonnage. During the Spanish Civil War the company sold oil to the Nationalist side of Francisco Franco . Located in the north bank of the River Thames in London, Shell Mex House

8840-780: The value of World War II military production contracts. The 1930s saw Shell's Mexican assets seized by the local government. After the invasion of the Netherlands by Nazi Germany in 1940, the head office of the Dutch companies was moved to Curaçao . In 1945, Shell's Danish headquarters in Copenhagen , at the time being used by the Gestapo , was bombed by Royal Air Force De Havilland Mosquitoes in Operation Carthage . In 1937, Iraq Petroleum Company (IPC), 23.75 percent owned by Royal Dutch Shell plc, signed an oil concession agreement with

8944-504: Was Peter Voser who became CEO of Shell on 1 July 2009. Following a career at the corporation, in locations such as Australia and Africa, Ann Pickard was appointed as the executive vice president of the Arctic at Royal Dutch Shell, a role that was publicized in an interview with McKinsey & Company in June 2014. In January 2023, Wael Sawan succeeded Ben van Beurden as CEO. The name Shell

9048-532: Was Gulbenkian, and the largest single shareholder was the British government-controlled Anglo-Persian Oil Company , which by 1914 held 50% of the shares. TPC received a promise of a concession from the Ottoman government, but the outbreak of World War I in 1914 stopped all exploration plans. Deutsche Bank brought a concession granted to the Anatolian Railway Company to explore for minerals and oil along

9152-547: Was already incorporated in 2002 as Forthdeal Limited , a shelf corporation incorporated by Swift Incorporations Limited and Instant Companies Limited, both based in Bristol. The unification was completed on 20 July 2005 and the original owners delisted their companies from the respective exchanges. On 20 July 2005, the Shell Transport & Trading Company plc was delisted from the LSE, whereas, Royal Dutch Petroleum Company from

9256-722: Was also interested in other ventures apart from oil, such as potash mining in Trans-Jordan , asphalt in Syria (for which it set up a company, Société Industrielle des Asphaltes et Pétroles de Lattique ) and salt mining in the Aden Protectorates - although this latter venture was never developed. The company created air transport companies, the Iraq Petroleum Transport Company and Transports du Proche Orient, to operate aircraft and vessels to ferry people and equipment to

9360-469: Was an Ottoman possession , early negotiations for an oil concession centered in the empire's capital, Constantinople . The first interest was shown by Imperial German banks and companies, already involved in building the Berlin-Baghdad railway . In 1911, in an attempt to bring together the competing British and German interests in the region, a British company known as African and Eastern Concession Ltd,

9464-465: Was an association of companies that played a major role in the discovery and development of oil resources in areas of the Middle East outside Iraq. The forerunner of the Iraq Petroleum Company (IPC) was the Turkish Petroleum Company (TPC), which was established in the early 20th century in the belief that Mesopotamia (Iraq and parts of Syria) contained substantial reservoirs of oil. Since Mesopotamia

9568-467: Was awarded to a consortium led by ExxonMobil (60%) and included Shell (15%). In February 2010, Shell and Cosan formed a 50:50 joint-venture, Raízen , comprising all of Cosan's Brazilian ethanol, energy generation, fuel distribution and sugar activities, and all of Shell's Brazilian retail fuel and aviation distribution businesses. In March 2010, Shell announced the sale of some of its assets, including its liquefied petroleum gas (LPG) business, to meet

9672-482: Was completed in 1931, and was the head office for Shell's marketing activity worldwide. In 1932, partly in response to the difficult economic conditions of the Great Depression , Shell-Mex merged its UK marketing operations with those of BP (British Petroleum) to create Shell-Mex & BP , a company that traded until the brands separated in 1975. Royal Dutch Company ranked 79th among United States corporations in

9776-823: Was created in April 1907 through the amalgamation of two rival companies: the Royal Dutch Petroleum Company ( Dutch : Koninklijke Nederlandse Petroleum Maatschappij ) of the Netherlands and the Shell Transport and Trading Company Limited of the United Kingdom . It was a move largely driven by the need to compete globally with Standard Oil . The Royal Dutch Petroleum Company was a Dutch company founded in 1890 to develop an oilfield in Pangkalan Brandan , North Sumatra , and initially led by August Kessler , Hugo Loudon, and Henri Deterding . The "Shell" Transport and Trading Company (the quotation marks were part of

9880-463: Was dissolved on 4 October 2018, while Iraq Petroleum Company Limited still exists, now using company number 09646587 instead of 00113948. "New" Iraq Petroleum Company Limited was incorporated on 18 June 2015 as " BP Newco 1 Limited" and succeeded operations of "old" Iraq Petroleum Company, Limited, which dissolved on 30 December 2015. In 1948, IPC published its Handbook of the Territories which Form

9984-592: Was formed. In 1912, this company became the Turkish Petroleum Company (TPC), formed with the purpose of acquiring concessions from the Ottoman Empire to explore for oil in Mesopotamia. The owners were a group of large European companies – Deutsche Bank , the Anglo Saxon Oil Company (a subsidiary of Royal Dutch Shell ), the National Bank of Turkey (a British concern) – and Armenian businessman Calouste Gulbenkian . The driving force behind its creation

10088-415: Was inability of the Iraqi government at that time to source the technical knowledge and skill necessary to take over oil operations in the country. Beginning in the early 1950s, as the strength of nationalism in Iraq grew, the focus came to bear on foreign control over the oil production of the country. Abd al-Karim Qasim was a nationalist Iraqi Army general who seized power in a 1958 coup d'état in which

10192-483: Was notably late in its acquisition as seen by journalists, with Shell seen as streamlining its assets around the same time of other major mergers and acquisitions in the industry, such as BP 's purchase of Amoco and the merger of Exxon and Mobil . In 2004, Shell overstated its oil reserves, resulting in loss of confidence in the group, a £17 million fine by the Financial Services Authority and

10296-796: Was registered in the Companies House on 21 January 2022. In December 2021, Shell pulled out of the Cambo oil field , off the Shetland Islands, claiming that "the economic case for investment in this project is not strong enough at this time, as well as having the potential for delays". The proposed oilfield had been the subject of intense campaigning by environmentalists in the run-up to the COP26 UN climate summit in Glasgow in November 2021. On 4 March 2022, during

10400-498: Was reluctant to develop it quickly and production was restricted to fields constituting only one-half of 1 percent of the country's total area. During the Great Depression , the world was awash with oil and greater output from Iraq would simply have driven the price down to even lower levels. Delaying tactics were employed not only in actual drilling and development, but also in conducting negotiations on such matters as pipeline rights-of-way. The owners of IPC had conflicting interests:

10504-585: Was struck. The initial uncontrolled gushing spilled many tons of oil, but the oil field was soon brought under control and proved to be extensive. The discovery hastened the negotiations over the composition of TPC, and on 31 July 1928 the shareholders signed a formal partnership agreement to include the Near East Development Corporation (NEDC), an American consortium of five large US oil companies that included Standard Oil of New Jersey , Standard Oil Company of New York (Socony), Gulf Oil ,

10608-542: Was subsequently criticised by the European Commission and five European Union members after deciding to leave part of its decommissioned oil rigs standing in the North Sea. Shell argued that removing them would be too costly and risky. Germany said that the estimated 11,000 tonnes of raw oil and toxins remaining in the rigs would eventually seep into the sea, and called it a 'ticking timebomb'. On 15 January 1999, off

10712-507: Was the lowest point in relations between the two up to this point. On 12 December 1961, the Iraqi government enacted Law No. 80, which expropriated 99.5 per cent of the IPC group's concession areas without compensation and put an immediate stop on oil exploration. Law 80 did not impact the IPC's ongoing production at Az Zubair and Kirkuk, but all other territories, including North Rumaila , were returned to Iraqi state control. One major difference between these negotiations and those of 1952,

10816-404: Was the stance of the Iraqi government. Whereas it had been more willing to accommodate the IPC in 1952, the government's positions under Qasim were largely non-negotiable. However this should not be surprising because it was expected that Qasim would take advantage of growing Arab nationalism and a sense amongst many ordinary Iraqis that they were being exploited by the west. Throughout the 1960s,

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