The Wall Street Journal: Shell Will Take Quarterly Charge Of $330 Million
“reserves-booking scandal this year exposing Shell’s need for new reserves”
By MARK LONG
DOW JONES NEWSWIRES
July 2, 2004
LONDON — Royal Dutch/Shell Group said it will take a $330 million (€270.7million) charge to its second-quarter earnings for unsuccessful exploration on assets inherited in its 2002 purchase of Enterprise Oil. The company also announced the planned sales of a number of downstream assets in the U.S., Peru and Spain, in a move seen as a signal that Shell is following through on intentions to boost returns.
Shell was criticized by some observers as overpaying in its $5 billion purchase of Enterprise, which brought producing and exploration areas in the North Sea, Brazil and the Gulf of Mexico under Shell’s aegis.