THE LONDON TIMES: Shell in £8bn payout amid reserves cut: “…yesterday admitted that it had found barely enough oil to replenish half the barrels that it pumped last year” (ShellNews.net) 4 Feb 05

By Carl Mortished

February 04, 2005

AFTER a year of record oil prices, Shell is promising shareholders a payout of up to $15 billion (£8 billion) in dividends and share buybacks, but yesterday admitted that it had found barely enough oil to replenish half the barrels that it pumped last year.

The Anglo-Dutch group was forced to downgrade its oil reserves for a fifth time yesterday as it unveiled record earnings of $17.6 billion, up 38 per cent on 2003. A well-by-well review of Shell’s portfolio has led to a cut of 1.4 billion barrels of oil and gas to 12.9 billion barrels as at the end of 2003. Shell has cut 5.8 billion barrels from proven reserves since its reserves scandal arose last January.

Malcolm Brinded, exploration director, yesterday insisted that it was the last revision, and admitted Shell had a challenge to restore reserves after a year’s net depletion. 

Shell said it had replaced with new reserves 45 to 55 per cent of its output of 3.8 million barrels a day in 2004. Mr Brinded said he was “reasonably confident” of 100 per cent replacement over five years without a big acquisition, but said: “In 2005 it will still be less than 100 per cent.”

http://business.timesonline.co.uk/article/0,,8209-1469934,00.html