DAILY EXPRESS (UK): Shell's oil reserves drop extra Ibn barrels: “The company said it was aiming to settle one of the civil class action lawsuits resulting from the scandal. But it is still facing another class action and a criminal investigation from the US Department of Justice. (ShellNews.net) Posted 2 April 05
City & Business
Edited by Stephen Kahn
SCANDAL-STRUCK energy giant Shell unveiled a further 1 billion barrel fall in its oil reserves yesterday.
But for once the move had nothing to do with correcting previous overstatements — -which led to nearly 5 billion barrels being wiped from reserves last year — but was because it was not replacing all the oil it pumped out of the ground.
At the end of the last year, reserves stood at 11.9 billion barrels because the group replaced only 19 per cent of the oil it produced, the group's annual report said. It added: "It is clearly a concern."
But despite the fall, company bosses, led by executive chairman Jeroen van der Veer, still enjoyed lucrative cash bonuses equivalent to 90 per cent of their 2005 salaries.
Van der Veer collected a £900,000 bonus, based on this year's pay of £1 million. His 2004 salary was £880,000. He was appointed last year to replace Sir Philip Watts, who was ousted in the wake of the scandal along with finance director Judy Boynton and exploration chief Walter van de Vijver.
The company said it was aiming to settle one of the civil class action lawsuits resulting from the scandal. But it is still facing another class action and a criminal investigation from the US Department of Justice.
The group's shares shed Ip to475p.
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