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Oil's well with Shell.

OIL giants Royal Dutch Shell moved yesterday to quell fears over their level of reserves.

The firm - who were hit by a crisis in 2004 when they overstated reserves by a fifth - said net reserves were unchanged at 11.9billion barrels at the end of last year.

Attacks on Shell's Nigerian operations, as well as the sale of part of their stake in Russia's vast Sakhalin-2 field, led to concerns over levels.

But the company said their reserves replacement ratio - the measure of how well they replace the oil they take out of the ground - was 109 per cent after the impact of acquisitions and sales, meaning the firm have found more oil and gas than they produced last year.

The group have also upped estimates of their overall oil and gas resources to 66billion barrels of oil - lasting 55 years.

Chief executive Jeroen van der Veer added that Shell were "rejuvenating its portfolio" for a world of higher and more volatile oil prices, which hit a record of nearly EUR112 a barrel yesterday.

The update from Shell comes just weeks after they reported annual profits of pounds 13.6billion in 2007.
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Title Annotation:Business
Publication:Daily Record (Glasgow, Scotland)
Date:Mar 18, 2008
Words:192
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