Shares in Royal Dutch/Shell fell by more than 7 per cent on Friday afternoon, dragging down other big groups in the oil sector, after the company cut its estimate of its proven oil and gas reserves by 20 per cent.
The Anglo-Dutch group surprised the market by "recategorising" the equivalent of 3.9bn barrels of oil following an internal review.
...Shell said the restatement of reserves would not have a material impact on production in the near term or the volumes expected to be recovered. But the FAS69 standardised measure of discounted future cashflows associated with the proved reserves would be impacted, Shell said.
The affected reserves were mainly booked from 1996 to 2002, and the largest impact of the change will be in Nigeria and Australia. Shell said the recategorisation would bring the global reserve base up to a "common standard of definition," consistent within the exploration and production business. article
Friday, January 09, 2004
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