Shell says US government drops probe into reserves scandal

Shell says US government drops probe into reserves scandal

London (Platts)--30Jun2005


The US Department of Justice has dropped its investigation into Shell's
recategorizations of its oil and gas reserves which saw the company shave over
5-bil bbl of oil equivalent from its proved reserve base, Shell said
Wednesday. 

Shell cited the US Attorney for the Southern District of New York,
David Kelley, as saying that the Department of Justice "would not take any
further action against Shell." Having originally reported proved oil and gas
reserves of 19.4-bil boe for 2002, Shell downgraded this figure five times in
16 months, leaving it at 13.72-bil boe, 5.6-bil boe less than first reported.
The resulting scandal led to the departure of three of the company's top
executives and $150-mil in fines from US and UK regulators as well as the
investigation by the Department of Justice. The company is also facing
shareholder lawsuits.

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