The oil and gas group has proved reserves of 14.4 billion barrels of oil equivalent. The Group, a subsidiary of Shell Petroleum (once Royal Dutch Shell), generates sales mainly from oil products, but it also makes chemicals, transports natural gas, trades gas and electricity, and develops renewable energy sources. It operates more than 46,000 gas stations worldwide. In 2004 the company reported that it had overestimated its reserves by 24%. The bad news resulted in the ouster of the Group’s chairman and CFO and the merger of Royal Dutch Petroleum and The Shell” Transport and Trading Company.
Shell could be facing a $1bn damages bill after it admitted overestimating oil reserves, according to a US lawyer.
Robert Schulman, who is launching a legal action on behalf of Shell investors, has told the BBC he thinks they have a “very good case”.
The oil giant admitted earlier this month that it had overstated its proven reserves by 20%