US SEC, UK's FSA confirm settlements with Shell over reserves

London (Platts)--24Aug2004

US and British financial regulators Tuesday confirmed they have agreed
settlements totalling over $150-mil with Shell for its overstatement of
reserves which has rocked investor confidence in Europe's second-biggest oil
company. Shell, which recategorized 22% of its proved oil and gas reserves
since the start of this year, and replaced three senior board executives over
the downgrades, is to pay a $120-mil civil order to the US' Securities and
Exchange Commission, which found Shell breached US antifraud, reporting,
recordkeeping laws. It will also pay a token $1 in "disgorgement" and $5-mil
to implement an internal control program. In the UK, it will pay a record
GBP17-mil ($30.8-mil) to Britain's Financial Services Authority for breaching
market-abuse provisions. Shell has said the agreements will clear it of any
further regulatory action from the agencies over its reserves debacle.

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