TheMiamiHerald.com: Shell Takes Hit from New Leak on Reserves
Daily Mail, London Knight Ridder/Tribune Business News
Fri, Apr. 02, 2004
Apr. 2 - Shell has been embarrassed once again by leaked documents suggesting that its top managers were warned about its oil reserves problems three years before they told investors.
The documents were unearthed by Shell's audit committee and handed over to US investigators, the Wall Street Journal reported. Shell would not comment.
In a June 2000 presentation to the exploration and production division, then headed by Sir Philip Watts, Shell planners warned that their bosses ran the risk of "an over-promise, under-delivery cycle."
They said projections for several projects were "very optimistic" and they pointed out that older oil fields were declining by up to 10 percent a year, the Journal said.
Shell only revealed its reserve problems in January, leading to a tumble in the share price. Yesterday, they held at 355 1/2 pence, down from 401 pence in January.