THE WASHINGTON TIMES: Royal/Dutch Shell CEO frets about reserves: “The company is rechecking the remaining 6 billion barrels and expects to complete the review by the end of the month, he said. But failure to complete the job by then could be severe.” (ShellNews.net) Posted 17 Dec 04
The Hague, Netherlands, (UPI) -- The head of Anglo-Dutch energy giant Royal Dutch/Shell says his head is "on the block" over uncertainty about how much oil and gas the company actually has.
Jeroen van der Veer told 100 of the company's top executives that he and Malcolm Brinded, head of the Shell's exploration and production division, could face expulsion if booking concerns are not remedied by year's end, the Financial Times reported Thursday.
Shell was forced to cut its proved reserves by 23 percent this year, a move that led to the removal of three senior executives, including Philip Watts, the chairman. Shell has rechecked 8 billion barrels of its 14 billion barrels of total reserves and said 900 million of those could be "unbooked."
The company is rechecking the remaining 6 billion barrels and expects to complete the review by the end of the month, he said. But failure to complete the job by then could be severe.
"My head, Malcolm's and those of the exploration and production leadership are all on the block," van der Veer said.