Oil giant Royal Dutch/Shell has announced a further downgrade of its oil reserves and says it will delay publication of its annual report, due out tomorrow, until May.
The company is under heavy pressure from investors to come up with an explanation for why it had to cut its proven reserves in January by 3.9 billion barrels, or 20 per cent.
Some of today's cut applies to 2002 and some to 2003, but it amounts to a total cut of a further 470 million barrels. Its annual shareholders meeting was also postponed to June from April.
"This means about a quarter of what they've booked for 2003 goes into non-proven reserves," said one trader. "Terrible".
Shell's troubles have sent shockwaves through the industry and have already cost the jobs of its two top executives. Shell said an internal review was continuing.
Shell's shares were trading 3.43 per cent lower at 359-1/4 pence at 1 p.m.