Shell says reserves unchanged from last year |
| MarketWatch - Mar 17, 2008 |
Shell said that total net reserves were 11.9 billion barrels of oil equivalent at the end of December. Reserves have been an issue at Europe's second-largest oil producer since a scandal in 2004 that found the firm was overstating them.
Excluding acquisitions and divestments, Shell's reserve replacement ratio was 109%. One major divestment in 2007 was the reduction of its stake in Sakhalin, a major field in Russia that the company was forced in part to sell. Read archived Sakhalin story.
De-consolidating Sakhalin hit reserves by about 1.1 billion barrels of oil, noted James Neale, an analyst at Citigroup.
"The group has had a very good performance with the drill bit," said Peter Hitchens, an analyst at Charles Stanley & Co. "However, with the sharp increase in capital expenditure that we have seen over the last few years we would expect to see the group at least replace production."
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- Posted: 2008-03-17 09:45:40
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