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Judy Boynton

Verdict on Royal Dutch Shell CFO Simon Henry

Shell internal email correspondence irrefutably proves that Simon Henry was aware in March 2002 that “reserves bookings were made that should not have been made”. Walter van de Vijver, the “sick and tired” Chief Executive of Shell EP, gave the information directly to him. As can be seen in the email, Walter van de Vijver aggressively accused Mr Henry of setting targets that were near impossible to achieve. The question arises of whether Mr Henry was a culprit, an accomplice, or an innocent bystander.

By John Donovan

INTRODUCTION

We have published a series of articles about the starring role of Simon Henry in the Royal Dutch Shell reserves scandal.

Shell internal email correspondence irrefutably proves that Simon Henry was aware in March 2002 that “reserves bookings were made that should not have been made”. Walter van de Vijver, the “sick and tired” Chief Executive of Shell EP, gave the information directly to him. Walter van de Vijver accused Mr Henry of setting targets that were near impossible to achieve. read more

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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

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Shell seeks to draw a line after fourth cut in reserves

FROM OUR ARCHIVES…

Shell seeks to draw a line after fourth cut in reserves

By Michael Harrison, Business Editor

25 May 2004

Royal Dutch-Shell, the crisis-torn oil giant, yesterday cut its proven reserves for the fourth time this year but then sought to reassure the City that it had drawn a line at last under the fiasco.

The latest downgrade means that Shell has now removed 4.5 billion barrels of oil from the proven category, equivalent to just under a quarter of its total reserves.

Malcolm Brinded, the head of exploration and production for Shell, said he was as sure as he could be that this would be the last revision to reserves estimates. “We are not planning to make further changes but you can never say never,” he added.
read more

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Canada candidate for top Shell job

Financial Times: Canada candidate for top Shell job

By Carola Hoyos in London

Published: May 19 2004 5:00 | Last Updated: May 19 2004 5:00

Royal Dutch/Shell yesterday announced the first promotion to its committee of managing directors since the scandal over its oil and gas reserves cut its members from six to three.

The appointment of Linda Cook, president and chief executive of Shell Canada, requires approval by shareholders at next month’s annual meeting. If it is passed, she will take up her post in August.

She is to run the group’s natural gas and power operations – a position she held before her move to Canada in 2003.
read more

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Shell reputation reserves close to empty

FROM OUR ARCHIVES…

Sydney Morning Herald: Shell reputation reserves close to empty

April 22, 2004

Posted 6 May 2004

The closely guarded reputation of Royal Dutch/Shell was in tatters this week as British newspapers accused the oil giant of lies and a cover-up after an explosive internal report admitted executives knew of problems with reserves more than two years ago.

Amid the clamour on Tuesday, a leading Shell shareholder publicly rejected the company’s claim that there was nothing fundamentally wrong with its structure. Robert Talbut, chief investment officer at fund manager Isis, said: “They have attempted to present this as being down to a couple of bad apples.
read more

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Daily Express: Shell pays £52m to help settle reserves actions

Daily Express: Shell pays £52m to help settle reserves actions

Posted Tuesday 19 July 2005

By Andrew Johnson

Published 13 July 2005

SHELL is close to settling one of the three major class actions it was facing in the US in the wake of last year’s reserves scandal.

The Anglo-Dutch oil giant has agreed to pay, subject to court approval, $90 million (£52 million) to a clutch of pension funds run for its US staff.

It is the latest move by the group to draw a line under the affair which saw nearly 6 billion barrels wiped from its reserves which had been artificially inflated. read more

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Shell pays $90m to settle class action

Times Online: Shell pays $90m to settle class action

“Shell still faces two other class action claims. One is a shareholder class action that has been consolidated in a New Jersey court. It is believed this claim asserts that share-based savings schemes suffered losses of more than £1 billion. Shell declined to comment on this case this morning. The other action is a derivative claim. Shell said that it was in settlement discussion over this claim but that it would be premature to comment any further.”

Wednesday July 13, 2005

By Miles Costello

Royal Dutch Shell, the oil giant, has agreed to pay more than $90 million to settle one of three class action legal cases levelled against it following its shock overstatement of the level of its proven oil and gas reserves last year.

The proposed settlement – which still has to be ratified by the American courts – comes after Shell found out earlier this month that it would not face criminal charges in connection with the overstatement scandal.

Shell’s revelation last January that it had been exaggerating the level of its oil reserves for years sent its stock tumbling and cost the jobs of several of its senior executives, including the chairman, Philip Watts. read more

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The Guardian (UK): US drops Shell criminal action

The Guardian (UK): US drops Shell criminal action

Mark Milner and David Teather in New York

Friday July 1, 2005

Shell will not face criminal prosecution by federal authorities in the United States for overstating its oil and gas reserves, the company said yesterday.

It said the US department of justice had concluded its investigation and David Kelley, the attorney for the Southern District of New York, had announced that no further action would be taken.

Jeroen van der Veer, Shell’s chief executive, said the company appreciated Mr Kelley’s decision. “The conclusion of this investigation is a most important step towards putting the matter of reserves recategorisations behind us.” read more

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The Guardian: Shell escapes charges over reserves reporting

The Guardian (UK): Shell escapes charges over reserves reporting

Mark Tran

Thursday June 30, 2005

Shell escaped criminal charges in the US today after a federal prosecutor decided that bringing the Anglo-Dutch oil giant to court over last year’s reserves scandal would not be in the public interest.

US lawyer David Kelley said yesterday that the world’s third-largest publicly traded oil company had cooperated with an investigation after admitting to an overstatement of its proven oil and natural gas reserves by 4.47bn barrels, or about 23%, from 1997 to 2002. read more

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Shell’s slimmer structure ‘will open the door to acquisitions’

Daily Telegraph: Shell’s slimmer structure ‘will open the door to acquisitions’

By Christopher Hope (Filed: 07/06/2005)

A leading Shell executive yesterday predicted that the company’s new slimmed down structure would make it easier to make acquisitions after it missed out on consolidation in the oil and gas industry in the late 1990s.

Shell’s shareholders vote later this month on plans to replace the British and Dutch companies which own Shell with just one business – Royal Dutch Shell – with its main listing on the London Stock Exchange.

Peter Voser, Shell’s chief financial officer, said: “The restructuring scheme will enable us to use our shares as a currency for acquisitions. This will bring us at par with our main competitors. This could be useful in a possible consolidation phase within the industry.” read more

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Shell News Monday, 17 January 2005

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Shell agrees to cull surplus non-execs

Sunday Telegraph: Shell agrees to cull surplus non-execs

“Executives of Royal Dutch/Shell, the Anglo-Dutch oil giant, have agreed to make a huge cull of its non-executive directors…”: “Meanwhile Judy Boynton, the discredited former finance director, is understood to be likely to agree her severance package in the next two weeks.”: “Her position was seen as untenable after the reserves debacle.”: “It is understood that her package will be close to her contractual terms, which guarantee a payoff worth at least $1m.”

By Sylvia Pfeifer (Filed: 26/09/2004)

Executives of Royal Dutch/Shell, the Anglo-Dutch oil giant, have agreed to make a huge cull of its non-executive directors – the clearest sign yet that the company will unify its two boards next year.

The boards of the two companies – Royal Dutch and Shell Transport & Trading – currently have 16 non-executives between them, far more than the average UK plc board.

The non-execs on the Royal Dutch board include some of Holland’s leading business and political figures, including Wim Kok, the country’s former prime minister. Shell Transport & Trading’s board has nine non-executives. read more

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Shell unveils $15bn recovery plan

The Guardian: Shell unveils $15bn recovery plan

“The reserves scandal forced Shell’s chairman, Philip Watts, to resign, along with Walter van de Vijver, its oil and gas chief and its chief financial officer, Judy Boynton. The company was fined by the financial services authority in the UK and the securities and exchange commission (SEC) in the US.”

Mark Tran

Posted 23 Sept 2004

The Anglo-Dutch oil giant Shell today sought to draw a line under its reserves scandal by announcing plans to spend $15bn (£8.4bn) a year to replenish reserves and develop production in its oil and gas business.

The world’s third-largest oil company also said it would sell $10-$12bn of non-core businesses over three years and would look at “focused acquisitions” to create value.

“We are focused on improving our competitive position, strong cash generation and total shareholder returns,” Jeroen van der Veer, the Shell chairman, said in the group’s strategy statement. “Replacing our reserves is a priority to support future growth.” read more

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Ex-Shell Chairman Challenges Watchdog over Oil Reserves Scandal

The Scotsman: Ex-Shell Chairman Challenges Watchdog over Oil Reserves Scandal

“The FSA found Shell guilty of market abuse and the Anglo-Dutch company last month agreed to pay £17 million to the FSA. (ShellNews.net)

By Phil Waller, City Staff, PA News

Posted 17 Sept 04

The former chairman of oil group Royal Dutch/Shell today challenged the City watchdog over its findings on the company’s oil reserves scandal.

In a letter to the Financial Services and Markets Tribunal, Sir Philip Watts sought permission to challenge some of the Financial Services Authority’s (FSA) findings on the reserves overstatement, which has led to Shell downgrading its proven reserves by 23%, or 4.47 billion barrels, since January.

The FSA found Shell guilty of market abuse and the Anglo-Dutch company last month agreed to pay £17 million to the FSA. read more

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Vision needed to revitalise Shell

London Evening Standard: Vision needed to revitalise Shell

“It is just six months since possibly the biggest post-Enron scandal erupted at Shell with the stunning admission that a group regarded as one of the most reliable in the world had lied about the health of its business.”

Steve Hawkes,

17 September 2004

SHELL chairman Jeroen van der Veer needs to give the presentation of his life next week, when he steps into the heart of the City to convince sceptics the struggling oil giant is on the way back.

After the worst year in the group’s long, proud history, van der Veer will finally spell out his vision for improving Shell’s reputation, restoring growth and, most importantly, finding more oil.

The setting is suitably ironic. Plaisterers’ Hall, one of the largest livery halls in London, is touted as reflecting the ‘grandeur of a bygone era’. Van der Veer now sorely needs to haul Shell into modern times. Deutsche Bank’s respected oil analyst JJ Traynor says: ‘The seeds of recovery are there … the right presentation could provide the catalyst.’ read more

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Former Shell Chairman Appeals Censure

Forbes.com: Former Shell Chairman Appeals Censure

“The Financial Services Authority’s final notice, issued on Aug. 24, said Shell had made false or misleading announcements in relation to its hydrocarbon reserves and reserves replacement ratios between 1998 and 2003, and had made those announcements despite indications and warnings that they were false.”

Associated Press

09.16.2004

The former chairman of Royal Dutch/Shell Group, Sir Philip Watts, petitioned a British regulatory body for permission to challenge some of its findings on Shell’s oil reserves scandal.

In a letter submitted to the Financial Services and Markets Tribunal, Watts defended his actions as head of the company.

“I believe that a full and fair examination of all the facts will demonstrate that I have acted properly and in good faith at all times,” Watts said in the letter. read more

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FSA chief hits right note on investor responsibility

The Scotsman: FSA chief hits right note on investor responsibility

“In the wake of a splurge of recent fines, particularly the record £17 million penalty on Shell for the oil giant’s reserves shortfall and cover-up, there have been those who have argued that it is the culpable directors who should bear the penalty, not the companies and investors.”

SCRUTINEER

MARTIN FLANAGAN

CITY EDITOR

Posted 11 Sep 2004

THE comments of the head of Britain’s financial regulator about who should suffer from financial penalties for corporate wrong-doing – companies and shareholders or the errant directors themselves – is timely.

In the wake of a splurge of recent fines, particularly the record £17 million penalty on Shell for the oil giant’s reserves shortfall and cover-up, there have been those who have argued that it is the culpable directors who should bear the penalty, not the companies and investors. read more

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The Scotsman: Concerns over potential £3m windfall

The Scotsman: Concerns over potential £3m windfall

“Ensuing investigations by the US Securities and Exchanges Commission and the UK Financial Services Authority revealed that the oil major had been over-inflating its reserves since 1998, implicating the company’s top management in the scandal.”

CATRINA STEWART

Posted 29 August 2004

A CORPORATE governance watchdog has flagged concerns over share option rewards for disgraced Royal Dutch/Shell executives Sir Philip Watts and Walter van de Vijver.

Sir Philip and Van de Vijver, who resigned this year along with chief financial officer Judy Boynton over the reserves scandal at Shell, could reap windfalls of over £3 million apiece if the dual-listed company’s share price achieves certain levels, said the Pensions Investment Research Consultancy (Pirc) this week. read more

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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

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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

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Fresh probe into Shell oil reserves scandal

The Scotsman: Fresh probe into Shell oil reserves scandal

Watchdogs to target ‘those responsible’

JIM STANTON, DEPUTY BUSINESS EDITOR

25 August 04

REGULATORS on both sides of the Atlantic are set to pursue a number of as-yet unnamed individuals that they believe are responsible for the reserves scandal at oil giant Shell.

News of separate investigation came as the embattled company settled fines with British and United States watchdogs over the debacle totalling £84 million.

Wrapping up an initial investigation, British regulator the Financial Services Authority said the Anglo-Dutch group was responsible for “unprecedented misconduct” and was putting out false figures for its proven oil reserves as far back as 1998. read more

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SEC to Continue With Shell Interviews Despite Striking Deal

Energy Intelligence Group: SEC to Continue With Shell Interviews Despite Striking Deal: “(SEC) is to continue interviewing Royal Dutch/Shell witnesses next month in connection with the group’s reserves downgrades, despite the deal in principle struck between the two sides”

(Copyright © 2004 Energy Intelligence Group, Inc.)

Thursday, August 5, 2004
Posted 14 August 2004

The US Securities and Exchange Commission (SEC) is to continue interviewing Royal Dutch/Shell witnesses next month in connection with the group’s reserves downgrades, despite the deal in principle struck between the two sides last week to halt the SEC’s investigation into the company, a Shell source told International Oil Daily on Wednesday.

“There are still some interviews being conducted in September,” the source said. read more

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Daily Mail: Board reforms will suit Shell

Daily Mail: Board reforms will suit Shell

“Call it a triumph of globalisation – or call it a total mess.”

Ruth Sunderland
13 August 2004
Posted 14 August 04

THE senior oilmen who resigned in the wake of Shell’s reserves crisis this year must rank pretty high up the league table of executives who are rewarded for failure.

Dutchman Walter van de Vijver, the former exploration boss, is receiving a golden handshake of up to €3.8m or £2.54m.

Given that he has been portrayed as an ineffectual whistleblower, some may wonder why he is being handed an even bigger golden handshake than the £1m-plus doled out to departed chairman Sir Philip Watts. read more

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The Guardian: Shell fined £84m over reserves scandal

The Guardian: Shell fined £84m over reserves scandal

“Shell is facing a criminal investigation by the US department of justice, ongoing inquiries by the Dutch financial market regulator and the Euronext stock exchange as well as litigation in the US”

Mark Milner

Friday July 30, 2004

Posted 31 July 2004

Royal Dutch/Shell said yesterday it had agreed in principle to pay £83.6m in fines to regulators in Britain and the US to settle investigations into the oil reserves scandal that broke this year.

News of the fines came alongside results from Shell which showed higher oil prices helped the group to earn net income of $4bn (£2.2bn) in the second quarter.

Shell said it would pay $120m to the securities and exchange commission for breaches of SEC rules and US laws, and £17m to the Financial Services Authority under UK market abuse provisions. The British fine is the largest imposed by the FSA and more than four times the previous record. Shell promised the SEC it would spend another $5m on bolstering internal compliance procedures. read more

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New York Times: Shell to Pay $150 Million in Settlement on Reserves

New York Times: Shell to Pay $150 Million in Settlement on Reserves

“Separately, the Commodity Futures Trading Commission said… Shell’s energy trading unit, Coral Energy Resources, had agreed to pay $30 million to settle accusations that it submitted false price data to publishers”

By HEATHER TIMMONS

Published: July 30, 2004

LONDON, July 29 – The Royal Dutch/Shell Group said on Thursday that it had agreed to pay a total of $150 million in fines to settle investigations by American and British securities regulators into its reporting of crude oil and natural gas reserves. The company said in January that it had substantially overstated those reserves.

The agreement eases some of the pressure on Shell, the world’s third-largest publicly held oil company. But Shell still faces a separate criminal investigation into the matter by the United States Justice Department, a continuing regulatory investigation in the Netherlands and several shareholder lawsuits. read more

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Daily Telegraph: Shell to pay watchdogs £80m for oil reserves row

Daily Telegraph: Shell to pay watchdogs £80m for oil reserves row

“but warned it could not put a figure on the cost of investor lawsuits.”

By Caroline Muspratt (Filed: 30/07/2004)

Royal Dutch/Shell has agreed to pay more than £80m to regulators to settle investigations into the oil giant’s overstatement of reserves, but warned it could not put a figure on the cost of investor lawsuits.

The company will pay £17m to the Financial Services Authority, the largest settlement ever paid to the UK watchdog. It will also pay $120m (£66m) to the US Securities and Exchange Commission and will spend a further $5m to develop an internal compliance programme. read more

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BBC NEWS: Shell fined over reserves scandal

BBC NEWS: Shell fined over reserves scandal

“will pay a penalty of £17m to the FSA – the biggest fine ever imposed by the regulator – and a $120m (£65.7m) civil penalty in the US.

The scandal rocked investor confidence

29 July 04

Oil giant Shell has agreed to pay more than £80m in penalties to settle inquiries by US and UK regulators into the firm’s restatement of reserves. The firm slashed its reserves estimates by 20% in January, a move which cost three top executives their jobs.

News of the settlement came as the company unveiled second-quarter net income of $4bn (£2.2bn) boosted by high oil prices from last year’s $2.6bn.

Shell added the review of its corporate structure was moving at a “good pace”. read more

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Reuters: Shell pays fines for reserves woes

Reuters: Shell pays fines for reserves woes

“Royal Dutch/Shell will pay about $150 million (82 million pounds) in fines for an oil reserves scandal that tarnished its reputation”

“Shell’s profits looked reasonable, but concerns remain over future production.” Oriel Securities analyst Richard Rose

By Sudip Kar-Gupta

Thu 29 July, 2004 09:12

LONDON/AMSTERDAM (Reuters) – Royal Dutch/Shell will pay about $150 million (82 million pounds) in fines for an oil reserves scandal that tarnished its reputation, the group says after reporting higher second-quarter profits.

The world’s third-biggest oil group said on Thursday net profit adjusted for the current cost of supply was $3.768 billion in the quarter, up 16 percent from a year earlier, but below forecasts. The company said production was lower and would fall further. read more

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Financial Director: The incriminating 2002 Form 20F Sarbanes-Oxley certificates signed separately by Jeroen van der Veer, Sir Philip Watts and Judy Boynton.

Financial Director: The incriminating 2002 Form 20F Sarbanes-Oxley certificates signed separately by Jeroen van der Veer, Sir Philip Watts and Judy Boynton.

(Webmasters note: the following article first published by Financial Director in June is printed below because it contains the incriminating Form 20 F signed by Jeroen van der Veer, the Chairman of the Royal Dutch Shell Group.)

Financial Director: Stringing us along? “even its new ‘Mr. Clean’, Jeroen van der Veer, could all be forced onto centre stage in Wall Street’s first major Sarbanes-Oxley prosecution”

By Anthony Harrington [02-06-2004]

Posted 24 July 04

With an investigation into Shell’s “proven” oil reserves looming, Sarbanes-Oxley may well have caught its first major false accounting scandal. read more

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Investors snub Shell in vote on liability

The Times: Investors snub Shell in vote on liability

“Pointing to Sir Mark Moody-Stuart, a former chairman of Shell’s CMD who sits on the Shell Transport board, Mr Pal said: “When this scandal came up, Sir Mark was present. Why did he allow this departure from Shell’s business principles? He should resign from all his other directorships.”

By Carl Mortished, International Business Editor

June 29, 2004

SHELL’S directors yesterday suffered a humiliating rebuff in the Netherlands when investors in Royal Dutch Petroleum, representing almost 40 per cent of the Dutch holding company’s shares, voted against discharging the directors from liability.

The annual resolution to discharge managing directors and supervisory board directors is normally a formality at Royal Dutch meetings, but a number of Dutch pension funds yesterday took the chance to express anger over the misreporting of 4.5 billion barrels of oil and gas reserves. read more

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Toronto Star: Oil giant’s brass beg for pardon and time

Toronto Star: Oil giant’s brass beg for pardon and time: Contrition expressed at Royal Dutch/Shell: Reserve-booking fiasco stays at centre stage

Jun. 29, 2004.

LONDON—Royal Dutch/Shell Group’s top brass, chastened by this year’s reserves-booking fiasco, have begged shareholders for forgiveness and time to revamp the Anglo-Dutch oil giant.

At twin annual general meetings yesterday in The Hague and London, board members of the parent companies, Royal Dutch Petroleum Co. and Shell Transport & Trading Co., were pressed by both the usual coterie of individual shareholders and an uncommonly large number of institutional investors who have been chafing for structural change and greater openness from the oil giant. read more

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Oil & Gas Journal: Pension funds sue Shell brass, auditors, seeking damages, policy changes

Oil & Gas Journal: Pension funds sue Shell brass, auditors, seeking damages, policy changes

Judy Clark

Associate Editor

28 June 2004

HOUSTON, June 28 — In a move that could indirectly impact a number of companies, two US-based pension funds filed suit Friday against 27 directors and officers of the Royal Dutch/Shell Group and their accounting and audit firms PricewaterhouseCoopers International and KPMG International.

The action followed financial losses and scandal associated with Shell’s cutting its proved oil and natural gas reserves four times since Jan. 9 for a total downgrade of 4.47 billion boe for 2002 reserves—23% of its proved reserves as stated Dec. 31, 2002—and 500 million boe for 2003. The reserves debacle exposed an underlying industry-wide problem in reserves booking that many companies must now address (OJG, Apr. 5, 2004, p. 43). read more

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Some fear that Shell is not going to undergo the drastic shake-up that it is clear is required

The Times: ‘Some fear that Shell is not going to undergo the drastic shake-up that it is clear is required’

By Patience Wheatcroft

June 26, 2004

WHAT a generous gesture from Shell’s remuneration committee. There was Sir Philip Watts, contemplating a future on a meagre pension of just £568,000 but now he has at least got an extra £1 million in the bank to fund those occasional excursions he may be planning in his retirement. The news must have cheered him up on his 59th birthday. It might even have taken his mind off those investigations that the FSA and the SEC are still conducting into his activities at Shell. read more

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Sacked Shell boss walks away with £1m

Daily Telegraph: Sacked Shell boss walks away with £1m: “despite his role in the oil giant’s reserves debacle”

By David Litterick (Filed: 26/06/2004)

Sir Philip Watts: huge payout despite failure on reserves

Sir Philip Watts was paid more than £1m compensation from Shell despite his role in the oil giant’s reserves debacle.

The former chairman has been paid a lump sum of £1,057,971, which the company said was based on the amount he could expect to receive if he had stayed in his job until his normal retirement date of June 2005.

Sir Philip received an annual salary of £800,000 when he was forced to resign in March after Shell’s announcement that it had overstated its proven oil reserves by 20pc – the equivalent of 3.9billion barrels. read more

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The Independent: Investor fury over £1m pay-off for Shell chief

The Independent: Investor fury over £1m pay-off for Shell chief

By Michael Harrison, Business Editor

26 June 2004

Shell outraged investors yesterday by giving its disgraced former chairman Sir Philip Watts a pay-off worth more than £1m.

Sir Philip, who was ousted from the oil giant in March following a scandal over the misreporting of reserves, has also been allowed to keep 2.9 million share options in Shell and start drawing a £584,000-a-year pension immediately.

The size of the pay-off is certain to provoke fury from shareholders at Monday’s twin annual meetings of the Anglo-Dutch company in London and The Hague. Investors are still recovering from January’s shock reserves downgrade which wiped £16bn from Shell’s market value. read more

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The Times: Shell hires veteran as new chief of finance

The Times: Shell hires veteran as new chief of finance

By Ingrid Mansell

June 25, 2004

SHELL plugged the final hole in its top management yesterday by appointing a 20-year company veteran to replace its ousted finance director.

Peter Voser, who worked for Shell from 1982 to 2002, will rejoin the oil major in October, following a two and a half year stint as chief financial officer of ABB. He is widely credited with turning round the Swiss engineering group.

Analysts said Mr Voser’s most pressing task at Shell would be a “City charm offensive” to restore investor confidence in the company’s management. The boardroom was cleared out after it emerged that the group had massively overstated its oil and gas reserves. read more

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Market welcomes return of Shell boss

Daily Telegraph: Market welcomes return of Shell boss

By David Litterick (Filed: 25/06/2004)

Shell brought back a veteran executive of 20 years’ experience yesterday to replace ousted finance director Judy Boynton and help it recover from recent scandals.

The oil giant appointed Peter Voser to the finance role, more than two years after he left the company to help turn around ABB as the engineers’ finance director.

The 45-year-old Swiss will join on October 4 and help to rebuild confidence in the group, which is still reeling from the news that it over-booked its oil and gas reserves. read more

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The Independent: Shell appointment

The Independent: Shell appointment

25 June 04

The appointment of Peter Voser to succeed the ousted Judy Boynton as Shell’s new finance chief drew a predictable howl of derision from all the usual suspects yesterday. This is because Mr Voser was a Shell lifer before his brief two years with ABB in Switzerland, making Shell vulnerable to the claim that it sill hasn’t taken on board the need for root and branch change despite the disasters of the last six months.

Nothing could be further from the truth. Mr Voser only left Shell after being passed over for the top finance job in favour of Ms Boynton, who was an acolyte of Sir Philip Watts. Indeed, it is possible to imagine that had the cool headed and accessible Mr Voser got the job, the reserving débâcle may never have happened, or rather it would have been gripped at a much earlier stage. read more

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Shell hires new finance director after reserves scandal

The Independent: Shell hires new finance director after reserves scandal

By Michael Harrison, Business Editor

25 June 2004

Shell moved yesterday to fill the gap at finance director level caused by the scandal over its mis-reporting of oil reserves by appointing a senior executive from the Swiss engineering giant ABB to the post.

Peter Voser, chief financial officer at ABB, will take up his job at Shell in October and will also join the oil company’s committee of managing directors – in effect its executive board. Mr Voser, 45, spent 20 years with Shell, leaving in 2002 after he was beaten to the job of finance director by Judy Boynton who was brought in from the US film and camera company Polaroid. Mr Voser is now replacing Ms Boynton who was forced to step down two months ago because of the lax internal controls within Shell, which resulted in it overstating its proven oil and gas reserves by 4.5 billion barrels or 25 per cent. read more

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The Guardian: Shell veteran returns to fold

The Guardian: Shell veteran returns to fold

Mark Milner

Friday June 25, 2004

Shell has brought back one of its old boys as it rebuilds a top management team devastated by scandal over oil reserves.

The Anglo-Dutch group has recruited Peter Voser, a Shell veteran of 20 years, who has spent the last two years helping engineering group ABB to rebuild its balance sheet.

He will take over as chief financial officer of Royal Dutch-Shell and will be a member of its committee of managing directors in early October. He will also become a director of Shell Transport and Trading, the British arm of the Anglo-Dutch group. read more

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The Guardian: Shell appoints new finance director

The Guardian: Shell appoints new finance director

Thursday June 24, 2004

Oil giant Shell today announced the appointment of a new finance director as it seeks to recover from the debacle over the booking of oil reserves.

Shell has recruited Peter Voser, the current finance head of Asea Brown Boveri (ABB), the Swiss engineering group. He will replace Judy Boynton, who quit Shell’s finance job in April after the company admitted in January that it had overstated its oil reserves.

Shell has been forced to restate its reserves four times this year to the consternation of its shareholders. Besides Ms Boynton, the chairman, Philip Watts, and oil and gas chief, Walter van de Vijver, have also been forced out. read more

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Shell appoints new finance chief: ‘a Shell veteran’

BBC News: Shell appoints new finance chief: ‘a Shell veteran’

24 June 04

Troubled oil giant Shell has appointed a new finance chief as it seeks to reassure nervous investors.

Peter Voser, formerly chief financial officer at Swiss firm ABB, will join Shell with effect from 4 October.

Shell’s former CFO Judy Boynton quit in April this year following a row over the firm’s booking of oil reserves.

Shell has been forced to restate its reserves four times this year, sparking anger amongst shareholders and leading several top executives to quit.

Ms Boynton’s departure had been preceded by the removal of chairman Philip Watts and oil and gas chief Walter van de Vijver. read more

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Shell investors threaten to revolt

Financial Times: Shell investors threaten to revolt

Posted 14 June 04

Royal Dutch/Shell faces the prospect of a investor revolt. With two weeks before the oil giant’s delayed twin annual meetings, institutional shareholders are growing increasingly frustrated by the secrecy surrounding the internal review of its governance structures and they plan to go public with their grievances, in person, at the meetings.

Since January 9 Shell has downgraded its proved oil reserves four times and, in the aftermath, shed Sir Philip Watts, group chairman, Walter van de Vijver, head of exploration and production, and Judy Boynton, finance director. It is also facing numerous class action lawsuits and regulatory investigations in the US, UK and the Netherlands. read more

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Shell investors threaten to revolt

Financial Times: Shell investors threaten to revolt

Posted 14 June 04

Royal Dutch/Shell faces the prospect of a investor revolt. With two weeks before the oil giant’s delayed twin annual meetings, institutional shareholders are growing increasingly frustrated by the secrecy surrounding the internal review of its governance structures and they plan to go public with their grievances, in person, at the meetings.

Since January 9 Shell has downgraded its proved oil reserves four times and, in the aftermath, shed Sir Philip Watts, group chairman, Walter van de Vijver, head of exploration and production, and Judy Boynton, finance director. It is also facing numerous class action lawsuits and regulatory investigations in the US, UK and the Netherlands. read more

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Mail on Sunday: Chairman Jeroen van der Veer in frame over Shell scandal – could lead to 20 years in jail

Mail on Sunday: Chairman Jeroen van der Veer in frame over Shell scandal – could lead to 20 years in jail

Patrick Tooher,

6 June 2004

SHELL chairman Jeroen van der Veer could face criminal prosecution in the US after signing accounts that massively overstated oil and gas reserves.

The revelation is another blow to Shell. Throughout the reserves fiasco, it has presented van der Veer as Mr Clean.

Van der Veer is bound to be questioned again about his role in the scandal when he meets leading shareholders this week.

Financial Mail has established that van de Veer, ex-chairman Sir Philip Watts and former finance director Judy Boynton put their names to statements required by the Sarbanes-Oxley Act. The Act came into force in 2002 after the WorldCom and Enron scandals. read more

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Shell’s Ex-Chairman Got Pay Raise in 2003

The Wall Street Journal: Shell’s Ex-Chairman Got Pay Raise in 2003

 

By CHIP CUMMINS

Staff Reporter of THE WALL STREET JOURNAL

June 1, 2004

 

LONDON — Philip Watts, ousted earlier this year as chairman of Royal Dutch/Shell Group for his role in the oil company’s energy-reserve accounting scandal, took home a 13% raise in base pay in 2003. Sir Philip earned £843,021 ($1.6 million or €1.3 million) in salary and fees, according to Shell’s annual report.

 

Sir Philip and other top executives received no annual bonus for 2003, a move Shell announced earlier this year in the midst of disclosures that it had greatly overstated its reserves of oil and natural gas. Without the bonus, Sir Philip’s pay for the year fell by 47%. read more

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The Observer: Shell’s ground zero

The Observer: Shell’s ground zero

Sunday May 30, 2004

The reserves scandal has left the Anglo-Dutch oil giant a long way behind its rivals. Dogged by difficulties in Nigeria and elsewhere, can it ever catch up, asks Oliver Morgan

On Friday morning there were loud thumps across the City as oil giant Shell’s hefty annual report finally landed on desks. The long-awaited document, delayed thanks to the internal turmoil caused by four downgrades that have stripped 4.7 billion barrels of oil from the company’s proved reserves, was an attempt to ‘fess up and move on.
read more

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The Scotsman: Troubled Shell’s board bonuses axed

The Scotsman: Troubled Shell’s board bonuses axed

 

MARTIN FLANAGAN CITY EDITOR

Sat 29 May 2004

 

STORM-tossed Shell, the subject of regulatory investigations on both sides of the Atlantic for the overstated oil reserves scandal, dispensed with annual bonuses last year as a result, it emerged yesterday.

 

The British/Dutch oil giant’s twin annual reports released yesterday, after months of delay in the wake of the reserves overstatement, also showed that two of the three directors who were sacked had no contractual right to a severance payoff. read more

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Shell withholds bonuses from ousted directors

The Times: Shell withholds bonuses from ousted directors

 

By Ingrid Mansell

May 29, 2004  

 

SHELL yesterday sought to assuage shareholder anger over its reserves misreporting scandal by revealing that it had withheld more than £2.5 million worth of bonuses from its ousted senior directors.

 

The Anglo-Dutch oil major said Sir Philip Watts, the former chairman, and Walter van de Vijver, the exploration chief, had missed out on potential bonuses worth £843,021 and £563,000 respectively. Sir Philip also failed to qualify for £752,000 worth of long-term incentives.   read more

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The Independent: Sacked Shell chief keeps 1m options

The Independent: Sacked Shell chief keeps 1m options

 

By Michael Harrison

29 May 2004

 

The disgraced former chairman of Royal Dutch/Shell, Sir Philip Watts, is to be allowed to retain more than a million share options granted to him last year. He will also be entitled to a £568,000 income in retirement after a £2m increase in his pension pot last year to more than £10m.

 

Sir Philip’s basic pay went up in 2003 by £98,000 or 13 per cent to £843,000. However, he received no annual bonus. He has also forfeited £752,000 worth of performance shares in Shell’s long-term incentive plan and 232,500 share options granted in 2001 because of the company’s below-average financial performance. However, the share options are worthless anyway because their exercise price is more than a pound above Shell’s current market price. read more

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