The Times: BUSINESS WEEK: Times Online's guide to the week's business stories:  “We can be pretty sure of Shell delivering a strategy briefing. But what, after such a torrid 2004 for the oil giant, might it contain?” (ShellNews.net)

Posted 18 Sept 04

Wednesday September 22

We can be pretty sure of Shell delivering a strategy briefing. But what, after such a torrid 2004 for the oil giant, might it contain?

Analysts will be hoping for detailed plans on how the company will refresh its reserves, after admitting in a series of revisions that more than 20 per cent of its "proven" stocks might not be so certain after all. The company's reserves fell to the equivalent of 10.2 years of production, a considerably lower figure than boasted by rivals such as BP.

Angus McPhail, the ING Financial Markets oil analyst, said: "They need to show some sort of roadmap as to how they are actually going to achieve a reserve replacement ratio above 100 per cent."

Shell may also outline further disposals, to raise cash for, in part, supporting exploration budgets.

However, the company is not expected to report details of its corporate governance review, which may lead to the Anglo-Dutch company adopting a unified structure.

Mark Iannotti, the Merrill Lynch oil analyst, said: "It's about convincing the market that there's genuine appetite at the senior level in the company for change."