Business Report: Shell gets hefty fine for reserves fiasco : “The SEC found the Anglo-Dutch group had violated reporting, record-keeping and anti-trust rules” (ShellNews.net)

Posted 30 July 2004

London - Energy multinational Shell said Thursday it had been fined $120 million (R753.6 million) by the Securities and Exchange Commission in the United States following the fiasco regarding the repeated downgrading of its proven reserves earlier this year.

The SEC found the Anglo-Dutch group had violated reporting, record-keeping and anti-trust rules.

An announcement by Shell in January that its oil and gas stocks were 20 percent lower than previously stated led to a spike in the oil price and a decline in its shares.

Shell subsequently announced a further three downgrades, although these were more limited in scope. 

Three senior executives were forced out after internal correspondence revealed they had known for some time that the group's reserves were overstated.

Shell has agreed to pay a penalty of £17 million (R193.8 million) imposed by Britain's Financial Services Authority.

The group reported Thursday its second-quarter profit stood at 4 billion dollars, attributing this to the highest oil prices for 20

years. - Sapa-dpa

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