Shell cuts reserves again, delays report

Oil giant Royal Dutch/Shell cut its oil and gas reserves again on Thursday and said it would delay publication of its annual report, due out on Friday, until May.

Some 250 mn barrels of the new reduction applies to reserves at end-2002. A further 220 mn barrels affects 2003, thereby increasing Shell’s total reserves cut for that year to 4.12 bn barrels from 3.9 bn previously. “This means about a quarter of what they’ve booked for 2003 goes into non-proven reserves,” said a trader.

Shell’s troubles have sent shockwaves through the industry, and have already cost the jobs of its two top executives. Its shares have fallen some 10 per cent since it cut its proven reserves by 20 per cent in January. Shell shares in London were trading 3.8 per cent lower at 358 pence at 1345 GMT, while stock in the Dutch arm were 3.7 per cent down at 38.10 euros in Amsterdam.