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Posts on ‘August 25th, 2004’

Los Angeles Times: Shell Increases 2004 Spending in Europe

Los Angeles Times: Shell Increases 2004 Spending in Europe

“The alleged role of individuals in the scandal remains under investigation by the SEC, and Shell also faces a separate probe by the U.S. Justice Department.”

By Associated Press

25 August 04

LONDON — Royal Dutch/Shell Group on Wednesday announced a $150 million increase in the amount of money it will spend in 2004 on exploration and production in Europe, bringing the total to $1.8 billion.

In addition to Italy, Ireland, Germany and Austria, Shell’s European region includes the North Sea, which is made up of Britain, Denmark, Netherlands and Norway. Despite recent concerns in the oil industry of declining production in the North Sea, Shell said it remains a strategic heartland for the company. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Forbes: Shell to Spend More on North Sea Venture

Forbes: Shell to Spend More on North Sea Venture

Shell has acknowledged that the overstatement of reserves and “inappropriate” accounting in other business areas resulted in profits being inflated by US$432 million.

Associated Press

08.25.2004,

Royal Dutch/Shell Group announced Wednesday that it would spend US$1.8 billion on exploration and production in the North Sea, including building a pipeline to transfer gas from Norway to Britain.

Shell said the North Sea remained a strategic heartland.

“We have invested around 8 billion pounds (US$14.3 billion) in technology, manpower and infrastructure in the past 10 years,” he said. “We are not going to walk away from that investment.”

One of the fields likely to receive part of the additional investment is Ormen Lange in Norway, which was among oil fields subject to last year’s controversial reserves downgrades by the company. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Forbes: Nigerian Senate Orders Shell Unit to Pay

Forbes: Nigerian Senate Orders Shell Unit to Pay

“Nigeria’s Senate has ordered a subsidiary of petroleum giant Royal/Dutch Shell to pay a Nigerian ethnic group US$1.5 billion… for oil spills in their homelands”

Associated Press

08.25.2004, 12:18 PM

Nigeria’s Senate has ordered a subsidiary of petroleum giant Royal/Dutch Shell to pay a Nigerian ethnic group US$1.5 billion (euro1.2 billion) for oil spills in their homelands, but the legislative body can’t enforce the resolution, an official said Wednesday.

Nigeria’s Senate ruled Tuesday that the unit, Shell Petroleum Development Company of Nigeria Ltd., must disburse the payment over five years to the Ijaw people of Nigeria’s oil-flush south as compensation for pollution in their area since 1956, Senate spokesman Henry Ugbolue said. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell faces £830m Nigeria claim

London Evening Standard: Shell faces £830m Nigeria claim

“The FSA’s conclusions will raise questions about the part played by Watts’ predecessor, Sir Mark Moody-Stuart, chairman between 1997 and 2001.

Steve Hawkes,

25 August 2004

ANGLO-DUTCH oil giant Shell suffered yet another blow today after it emerged the group could face a lengthy court battle over a $1.5bn (£833m) environmental compensation claim in Nigeria.

The Nigerian Senate, the country’s controversial upper house, passed a resolution asking Shell’s Nigerian unit to compensate oilfield communities in the Niger Delta for pollution.

Its move came as Shell struggled to shake off fresh controversy over its reserves scandal following yesterday’s damaging reports by regulators on both sides of the Atlantic. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

The Shell Chairman responsible for Shell’s descent into cover-up and scandal

ShellNews.net: The Shell Chairman responsible for Shell’s descent into cover-up, scandal and shame on an epic scale – Sir Mark Moody-Stuart

By Alfred Donovan, 25 August 2004

(This article was written at the kind invitation of Mr Charles Wiwa, the nephew of Ken Saro-Wiwa, for publication in a US newsmagazine circulated to university students. Charles Wiwa is one of the parties in a U.S. Class Action lawsuit being brought against Shell in respect of its misdeeds in Nigeria.)

It is now confirmed by the reports by the U.S. Securities & Exchange Commission and the UK Financial Services Authority that the deception regarding Shell reserves started during the tenure of Shell Chairman Sir Mark Moody-Stuart. He is identified in many newspaper reports as being implicated in the reserves debacle. As will become obvious when reading this article, the news stories naming Moody-Stuart come as no surprise to me. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

London Evening Standard: Shell scandal ‘could be repeated’

London Evening Standard: Shell scandal ‘could be repeated’

“Findings by regulators have widened the scandal by accusing Shell of giving false reserve figures from 1998 to 2003, raising questions about the role of executives, including Sir Mark Moody-Stuart”

Steve Hawkes,

25 August 2004

REPEAT of the reserves crisis at Shell may be unavoidable despite moves by the US regulators to force oil and gas majors to hire third parties to check the size of their discoveries.

Ryder Scott, the US firm brought in to requantify Shell’s reserves earlier this year, claims there are simply too few of its type around to cover the number of companies operating in the energy industry.

Ryder Scott chief executive Ron Harrell said: ‘Clearly there are not enough of us qualified to serve the needs of companies reporting to the Securities and Exchange Commission in conducting annual, meaningful reserve certifications.’ read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Daily Mail: Shocking rebuke stings Shell

Daily Mail: Shocking rebuke stings Shell

“Officials are said to have found Shell’s behaviour particularly appalling given the fact that the Anglo-Dutch giant had appeared a pillar of respectability.”

Ruth Sunderland,

25 August 2004

THE dressing- down administered to Shell by City regulator the Financial Services Authority is one of the most ferocious and shaming ever suffered by a major British company.

The FSA confirmed it is imposing a £17m fine on Shell, which admitted in January that it had overstated its oil and gas reserves by a fifth.

That is a mere drop in the oil well for Shell. But the truly damning part of yesterday’s announcement was not the financial penalty but the language used to describe Shell’s ‘unprecedented misconduct’. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

The horror story that has emerged from Shell

The Times: An auditor of no account

“the horror story that has emerged from Shell”: “determination to present the City with inflated numbers…widespread”

by Patience Wheatcroft

Business Editor’s Commentary

August 25, 2004

IT cannot have been much fun being the Group Reserves Auditor (GRA) of Shell. With no staff and limited resources, the part-timer could only visit a fraction of the group’s operating units in any one year. And it seems that he might have just as well not have bothered anyhow.

Reading the Financial Services Authority’s report into why it felt Shell deserved a £17 million fine, it emerges that the GRA was given as much respect in the organisation as the tea lady might have had. He could voice concerns about the valuations the company chose to use and they would be totally ignored. He had no authority to enforce the official rules on how reserves should be valued or even hold the company to its own guidelines. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell Settles Oil Reserve Fraud Case for $150.7 Million

The New York Times: Shell Settles Oil Reserve Fraud Case for $150.7 Million

Degenhardt added that the overstatements had occurred “over an extended period.”

Posted 25 August 04

LONDON (Reuters) – Regulators said on Tuesday they would pursue individuals responsible for a reserves scandal at Royal Dutch/Shell Group (RD.AS) (SHEL.L), as the oil giant settled $151 million in fines over the debacle.

“As our investigation continues, we intend to focus on, among other things, the people responsible for Shell’s failures,” said Harold F. Degenhardt, administrator at the Securities and Exchange Commission (SEC) in the United States.

Degenhardt added that the overstatements had occurred “over an extended period.” The SEC added that it had warned Shell before late 2003 that its “reported proved reserves potentially were overstated.” read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Investigators say Royal Dutch-Shell officials in sights

Houston Chronicle: Probe aims at top: Investigators say Royal Dutch-Shell officials in sights

By TOM FOWLER

Posted 25 August 2004

U.S. and British securities regulators are focusing on senior Royal Dutch-Shell officials and the roles they may have played in the oil giant’s massive overstatement of reserves.

The Securities and Exchange Commission and England’s Financial Services Authority said Tuesday they are now pursuing senior officials from the company related to the matter, which led to numerous shareholder lawsuits and a Justice Department investigation.

“As our investigation continues, we intend to focus on, among other things, the people responsible for Shell’s failures,” said Harold Degenhardt, administrator of the SEC’s Fort Worth office. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

SEC, FSA Fine Shell For Reserves Overstatements

THE WALL STREET JOURNAL: SEC, FSA Fine Shell For Reserves Overstatements

“The SEC can still bring civil charges against individuals. Prosecutors at the U.S. Justice Department – who can bring criminal and civil charges – are continuing their own probe into the reserves issue”

DOW JONES NEWSWIRES

August 24, 2004 2:25 p.m.

By Mark Long

Of DOW JONES NEWSWIRES

LONDON — U.S. and British listing authorities Tuesday formally announced they are fining embattled oil giant Royal Dutch/Shell Group (RD, SC) around $150 million for overstating its tally of oil and natural gas reserves.

The fines – announced simultaneously by the U.S. Securities and Exchange Commission and the U.K.’s Financial Services Authority – are in line with fines Shell said last month it had agreed to pay the agencies in a preliminary agreement. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

SEC Order Shows Many Involved In Shell Reserves Debacle

THE WALL STREET JOURNAL: SEC Order Shows Many Involved In Shell Reserves Debacle

“administrative order confirms that the scandal touched many officials beyond the senior executives who have left the company”

By JOHN M. BIERS

August 24, 2004 6:25 p.m.

Of DOW JONES NEWSWIRES

HOUSTON — After months of quietly investigating the Royal Dutch/Shell (RD,SC) accounting scandal, U.S. regulators finally weighed in Tuesday, concluding in an official report that the company “knowingly or recklessly” misrepresented its oil and gas holdings.

The government disclosed no new bombshells, but a Securities and Exchange Commission administrative order confirms that the scandal touched many officials beyond the senior executives who have left the company. Shell neither confirmed nor denied the findings in a 19-page SEC order released in tandem with $125 million settlement. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

The Guardian: Damned in detail – but let off lightly

The Guardian: Damned in detail – but let off lightly: Shell faced far higher penalty in the US: The Financial Services Authority’s judgment of the Shell reserves scandal is damning both in detail and conclusion, accusing the company of “unprecedented misconduct”.

Wednesday August 25, 2004

The Financial Services Authority’s judgment of the Shell reserves scandal is damning both in detail and conclusion, accusing the company of “unprecedented misconduct”.

To a degree, the “unprecedented misconduct” has been met with an unprecedented punishment. The £17m fine slapped on the company is more than four times the previous record for an FSA sanction.

Unprecedented it may be, but will it hurt? And, by meting out a £17m fine on Shell, has the FSA raised the bar when it comes to handing out punishment? Or has it set a ceiling? read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

The Guardian: Shell’s shame: FSA spells out abuse

The Guardian: Shell’s shame: FSA spells out abuse

“Fadel Gheit, an oil analyst at broker Oppenheimer & Co in New York, said the latest revelations from the regulators proved this was a corporate scandal of “historic proportions”. He added: “Short of Enron… I have not seen anything like this in 30 years of covering the market.”

Regulator confirms £17m fine and accuses group of ‘unprecedented misconduct’ in oil and gas reserves scandal

Terry Macalister

Wednesday August 25, 2004

The Financial Services Authority yesterday accused Shell of “unprecedented misconduct” for misleading the markets over the reporting of oil and gas reserves.

The searing criticism came alongside confirmation of a £17m fine for “market abuse” from the FSA plus a further $120m (£67m) from the Securities and Exchange Commission in the United States. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

The Guardian: Solitary part-timer conducted group audit

FROM OUR AUGUST 2004 SHELL NEWS ARCHIVE

The Guardian: Solitary part-timer conducted group audit

“The FSA makes clear that Shell’s reserves difficulties began in 1997”

Terry Macalister

Wednesday August 25, 2004

The crucial auditing of Shell’s global oil and gas reserves was undertaken by one part-time engineer.

The revelation comes in the report by the Financial Services Authority, which describes group reserves auditing (GRA) of a key value indicator as “deficient and ineffective”.

Shell’s decentralised structure needed a robust internal reserves auditing function. Instead, it “had engaged as GRA a petroleum engineer – who worked only part-time and was provided limited resources and no staff – to audit its worldwide operations,” the FSA says. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Daily Telegraph: Shell takes mauling over ‘market abuse’

Daily Telegraph: Shell takes mauling over ‘market abuse’

“Shell was yesterday savaged by regulators in Britain and America for “unprecedented misconduct”: ‘The FSA said Shell “disseminated false or misleading information as to the true extent of its proved reserves” from 1998 until last July.’

By James Moore (Filed: 25/08/2004)

Shell was yesterday savaged by regulators in Britain and America for “unprecedented misconduct” that led to it mis-stating its proven oil reserves by more than a fifth.

The US Securities & Exchange Commission and the Financial Services Authority spelled out a catalogue of failings at the crisis-stricken oil company and set out their reasons for imposing penalties of $120m (£67m) in the US and a record £17m in the UK.

A further $5m will be spent by the Anglo Dutch company on developing and implementing a comprehensive internal compliance programme as part of its decision to settle an SEC fraud probe announced last month. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Pressing questions: Can Shell rebuild its reputation? Is Shell a takeover play?

The Times: Pressing questions: “Can Shell rebuild its reputation?”: “Is Shell a takeover play?”: “Why did the auditors not resign when they questioned the booking of gas reserves in 1998?”: “Should they resign now?”

August 25, 2004

Can Shell rebuild its reputation?

It will take time, ingenuity and luck — all sadly lacking at present. The company’s main problem is it has not been finding oil because of poor strategic decisions in the past. Rebuilding by exploration alone could take a decade. Shell could buy reserves but would pay dearly.

Is Shell a takeover play?

City bankers would love a big deal but Shell is too large to tempt all but three companies. ExxonMobil and BP would face huge antitrust problems. Total might escape competition problems but it is smaller than Shell and would need the blessing of Dutch institutions. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

SHELL shareholders have demanded that more heads roll

The Times: SHELL shareholders have demanded that more heads roll at the world’s third-largest oil company to regain investor confidence.: “The people who are in charge of Shell today … were there when these activities were going on and are still involved at the highest level…

25 August 2004

Several top Shell executives have already lost their jobs in the wake of numerous reserves downgrades this year.

A new board has promised to improve corporate governance. But a fund manager with control of more than 1 per cent of Shell’s shares, who declined to be named, said the company continued to be “steeped in a kind of civil service culture”.

“The people who are in charge of Shell today … were there when these activities were going on and are still involved at the highest level … They didn’t have the controls in place to stop this kind of thing happening,” he said. “I’m not sure that they can manage the business properly, to avoid similar problems in the future.” read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

FSA exposes long-running deception by Shell executives

The Times: FSA exposes long-running deception by Shell executives

“raises questions about the role of senior executives who led Shell in the late 1990s, including Sir Mark Moody-Stuart”

By Carl Mortished, International Business Editor

August 25, 2004

THE Shell oil reserves scandal grew yesterday as the Financial Services Authority said that the misreporting of a quarter of Shell’s oil and gas reserves was part of an attempt led from the top over many years to boost its poor exploration performance.

The FSA’s report, which accuses Shell of market abuse in announcing false oil reserve figures from 1998 to 2003, raises questions about the role of senior executives who led Shell in the late 1990s, including Sir Mark Moody-Stuart, chairman of Shell’s committee of managing directors (CMD). read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

FSA fines Shell £17,000,000 for market abuse

PRESS STATEMENT BY FINANCIAL SERVICES AUTHORITY: FSA fines Shell £17,000,000 for market abuse

FSA/PN/074/2004
24 August 2004

Posted 25 August 04

The FSA has today fined the Shell Transport and Trading Company (“STT”), Royal Dutch Petroleum Company (“RDP”) and the Royal Dutch/Shell Group of Companies (“Shell”) £17 million for committing market abuse and breaching the listing rules.

This fine was imposed on Shell as a result of unprecedented misconduct in relation to misstatements of its proved reserves. When Shell first publicly revealed on 9 January 2004 that it had misstated its reserves, STT’s share price fell from 401p to 371p (7.5%) reducing its market capitalisation on that day by approximately £2.9 billion. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell settles fraud case for $150M

FROM OUR AUGUST 2004 SHELL NEWS ARCHIVE

CNN: Shell settles fraud case for $150M

Oil company agrees to pay SEC for overstating reserves, also settles market abuse case in Britain.

August 24, 2004

NEW YORK (CNN/Money) – Royal Dutch/Shell has agreed to pay about $150 million to settle charges by U.S. and British regulators that it vastly overstated oil reserves.

Under the settlement, Shell has also agreed to commit another $5 million to establish an internal compliance program under the direction and oversight of the company’s legal director, the Securities and Exchange Commission said in a statement.

The company units cited by the SEC, Royal Dutch Petroleum and Shell Transport, neither admitted to or denied any wrongdoing, the commission said. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell oil scandal ‘began in 1998’

thisislondon.co.uk: Shell oil scandal ‘began in 1998’

“the FSA said Shell made false and misleading statements between 1998 and 2003.”

Andrew Oxlade, This Is Money

24 August 2004

Posted 25 August 04

THE Financial Services Authority, the City watchdog, has alleged that Shell’s now infamous mis-statement of proven reserves dates back to 1998 – four years earlier than was previously thought.

Its investigation, published today, also found that the company ignored warnings as early as 2000 that estimates may be wrong.

The world’s third-largest oil group admitted earlier this year it had overbooked oil and gas reserves by more than 4bn barrels, slashing its lucrative energy portfolio by 23% and stunning the City. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

The Scotsman: Shell’s £82.7M Fines over Reserves Crisis Confirmed

The Scotsman: Shell’s £82.7M Fines over Reserves Crisis Confirmed

“False or misleading statements were given to investors about the extent of Shell’s reserves as far back as 1998, the FSA said.”

By David Winning, City Staff, PA News

25 August 04

Shell was today rapped by financial watchdogs for a catalogue of failings that led to it inflating its oil and gas reserves.

Fines totalling £82.7 million were confirmed against the group after investigations by the Financial Services Authority (FSA) and Securities and Exchange Commission (SEC) in the US found it committed market abuse.

False or misleading statements were given to investors about the extent of Shell’s reserves as far back as 1998, the FSA said. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Fool.com: Shell Shocked?

Fool.com: Shell Shocked?

“If the stink of a recent restatement and high-sulfur gas mixture wasn’t enough to have shareholders gasping for air, then the past year’s proven oil reserves scandal certainly was.”

By Seth Jayson (TMFBent)

August 24, 2004

Posted 25 August 04

Long-suffering investors in Royal Dutch Petroleum (NYSE: RD) and Shell Transport (NYSE: SC) likely spent the day wondering whether this morning’s news might finally clear the air.

If the stink of a recent restatement and high-sulfur gas mixture wasn’t enough to have shareholders gasping for air, then the past year’s proven oil reserves scandal certainly was.

The problem, first revealed in January, seems to have been that for Royal Dutch/Shell execs, proven meant made up, and reserves meant wishful thinking. I hope they’re clear on what oil is. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell committed ‘unprecedented misconduct’

AccountancyAge: Shell committed ‘unprecedented misconduct’

“This included the false announcements made about the levels of its oil reserves, despite warnings that its figures were ‘false or misleading’.”

By Kevin Reed

Posted 25 August 04

Shell’s ‘unprecedented misconduct’ in relation to misstating its oil reserves led to the record-breaking £17m fine by the FSA, the regulator has today confirmed.

A number of factors made Shell’s abuse of the market ‘particularly serious’, according to the regulator’s findings.

This included the false announcements made about the levels of its oil reserves, despite warnings that its figures were ‘false or misleading’. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

The Independent: Shell still wrestling with its moment of shame

FROM OUR AUGUST 2004 SHELL NEWS ARCHIVE

The Independent: Shell still wrestling with its moment of shame

“Shell is bluntly accused of making false and misleading statements about its oil reserves over a five-year period, of doing so despite internal warnings that the statements were false”

JEREMY WARNER

United Kingdom; Aug 25, 2004

SHELL CAN only hope that yesterday’s parallel statements from the Financial Services Authority and the US Securities and Exchange Commission on the reserving debacle that threatened to engulf the company earlier this year finally closes the chapter on one of the darkest and most disreputable periods in its history.

The statements themselves make humiliating reading for a company that invests so heavily in public trust. Where once you could be sure of Shell, there seems very little you can be sure of now. Shell is bluntly accused of making false and misleading statements about its oil reserves over a five-year period, of doing so despite internal warnings that the statements were false, and then of blithely failing to correct the misleading impression given. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Lloyds List: Shell settles with regulators to end reserves scandal

Lloyds List: Shell settles with regulators to end reserves scandal

“findings and conclusions in the FSA’s ‘final notice’ and the SEC’s ‘cease and desist order’.”

Tony Gray

Aug 25, 2004

SHELL has moved closer to consigning one of the oil giant’s darkest chapters to history when it reached final settlements with the US and UK authorities over its mis-statement of proven oil reserves.

The world’s third-largest oil group is paying $120m to the US Securities and Exchange Commission and a record GBP17m ($30.4m) to the UK Financial Services Authority.

These fines come seven months after Shell shocked investors by slashing its proven oil and gas reserves by a fifth, or 4.47bn barrels. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Creating value through entrepreneurial management of hydrocarbon resource values: fraud

Financial Times: Lex: Royal Dutch/Shell

“Creating value through entrepreneurial management of hydrocarbon resource values” could be the title of just another jargon-filled memo. The fact that the paper was written at Royal Dutch/Shell in May 1998 and led to a relaxation of reserve guidelines lends it a more ironic slant.”: “The findings further damage the oil group’s battered reputation.”

Published: August 24 2004 19:00

Posted 25 August 04

“Creating value through entrepreneurial management of hydrocarbon resource values” could be the title of just another jargon-filled memo.

The fact that the paper was written at Royal Dutch/Shell in May 1998 and led to a relaxation of reserve guidelines lends it a more ironic slant. Unfortunately, Shell’s management focused more on the entrepreneurial aspects than the value-creating ones.

The document is mentioned in the Financial Services Authority’s report on Shell, which found it guilty of market abuse. Shell has been fined £17m by the FSA and $120m by the Securities and Exchange Commission in a simultaneous settlement. The findings further damage the oil group’s battered reputation. Shell was warned by internal reports as early as January 2000 that its reserves bookings were suspect a reminder of just how long the cover-up lasted. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell ‘knew of reserves overstatement in 2000’

Financial Times: Shell ‘knew of reserves overstatement in 2000’

“two years earlier than previously reported by the company’s own investigation into the reporting scandal.”

By Carola Hoyos, Adrian Michaels and Andrew Parker

Published: August 24 2004

Royal Dutch/Shell, the Anglo-Dutch energy group, abused market regulations because it wanted to maintain the appearance of a strong oil and gas reserves base, US and UK regulators concluded on Tuesday.

Shell’s reserves auditors warned the company as early as January 2000 that its reserves figures may have been overstated, four years before executives admitted mistakes in public and two years earlier than previously reported by the company’s own investigation into the reporting scandal. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.
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