Energy Biz Insights: Shell Accused Of Paying PROTECTION, Chesapeake’s CONTRACTS

Reversing Thursday’s story that the Asian gas project would be shelved at least temporarily, the French oil major Total S.A. (NYSE:TOT) commented that “The cost of the project with its current definition is too high, [but] there has been no decision by partners to postpone Shtokman project sine die.” Reports that the project’s operator Oao Gazprom Adr (OGZPY.PK) has indefinitely stopped development of the huge gas field were thus denied. Spokespersons said that “teams are pursuing technical studies to achieve an economically viable project.”

It is claimed that Royal Dutch Shell (NYSE:RDSA)(NYSE:RDSB) paid hundreds of millions of dollars from extortion by armed militants and criminal gangs for “security” during the height of Nigeria’s civil war between 2007 and 2009, says a report from watchdog group Platform that was based on leaked internal data.

It’s alleged that Chesapeake Energy Corporation (NYSE:CHK) has been reinterpreting some thousands of contracts with landowners from Texas to Pennsylvania in its own favor, according to Bloomberg. In its defense, the company cites a federal court decision that a provision to pay royalties on “market value” of the gas lets it to deduct costs.

Are these stocks a buy or sell? Let us help you decide. Check out our Wall St. Cheat Sheet Stock Picker Newsletter now >>