CBC News: Shell reduces reserve estimates for fourth time this year

Posted 24 May 04

TORONTO - Royal Dutch/Shell Group downgraded its oil reserves for the fourth time this year on Monday.

The company said it was shifting about 103 million barrels from "proven" to a less-certain classification.

Shell blamed the shift on accounting changes involving royalties paid in Canada.

The restatement came ahead of Friday's publication of the company's annual report.

In January, the company said its reserve estimates were overstatement chopped its confirmed them by 20 per cent or roughly 3.9 billion barrels.

Two other announcements since January brought the total downgraded to 4.47 billion barrels,.

Shell has released documents that show senior executives at the firm knew the estimates were inflated. Former company chairman Sir Philip Watts, former CFO Judith Boynton and former exploration and development head Walter van de Vijver all resigned amid the controversy.

Written by CBC News Online staff

http://www.cbc.ca/stories/2004/05/24/shell_040524