The Guardian is reporting that in an internal inquiry released yesterday, the World's Third Largest Oil Company misled investors about the financial
health of the Company.
The Anglo-Dutch oil company sacked its chairman Sir Philip Watts and his exploration director Walter van de Vijver earlier this year after
admitting it had overstated the amount of oil and gas reserves it had in the ground by more than 20%.
Yesterday it said the figure was nearer 25% and admitted Sir Philip and Mr Van de Vijver had known about the problems for at least two years and
possibly for as long as seven.
Extraordinary messages between senior directors, revealed yesterday, must increase the likelihood of them facing criminal charges from the US justice
department which is investigating events.
The most damning statement comes in an email from Mr Van de Vijver to Sir Philip dated November 9 2003, which says: "I am becoming sick and tired
about lying about the extent of our reserves issues and the downward revisions that need to be done because of far too aggressive/optimistic
LONDON (Reuters) - Royal Dutch/Shell executives knowingly hid an oil and gas reserves shortfall for years and feared the game was up as far back as
2002, an independent review revealed on Monday.
The news came as the oil giant cut reserve estimates again and sacked a third senior executive, Chief Financial Officer Judy Boynton, for her part in
the scandal, which shocked investors when it finally became public in January this year.
Shell added 300 million barrels to total booked reserve cuts for 2002, to make a total reduction of 4.35 billion barrels of oil equivalent (boe) --
more than 22 percent of reserves originally booked for that year.
Shell admits deceiving shareholders; Sacked chairman savaged in report
20 April 2004
Shell was embroiled yesterday in Britain's biggest corporate scandal for almost 20 years after it admitted a three-year plan to deceive its
The City reacted with astonishment after the crisis-stricken multinational released details from an internal report that exposed how the company had
deliberately overstated its oil and gas reserves for several years.
Judy Boynton, the finance chief, became the third boardroom casualty of the furore that followed the shock 20 per cent downgrade in reserves three
months ago. The Shell affair, the most damaging scandal in the UK since the Guinness debacle 18 years ago, has already led to the departure of the
chairman, Sir Philip Watts, and the head of exploration and production, Walter van de Vijver.
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