19-04-04

Shell said in London it was restating the firm's oil reserves for the third time this year.

The latest restatement means the company has sliced 4.35 bn barrels of oil from its original 2002 estimate, with a further 500 mm barrels of oil downgraded for 2003. Also, the company confirmed Judy Boynton was to step aside as finance director. It's the third departure of a senior officer since January when the company made the first restatement of proven oil reserves.

The announcement included the statement that the company was cutting more than $ 400 mm from profits to account for the "disturbing deficiencies" in its reporting practices.

The reserves downgrade brings Shell's total reserves cuts to about 22 % of the company's previously stated holdings as of the end of 2002. Shell is the world's third-largest publicly traded oil company by market capitalization.

Source: United Press International