Oil giant Royal Dutch/Shell unveiled plans for major disposals and new production today in its bid to draw a line under an earlier reserves scandal that rocked the group.
The world's third-largest oil group said in a statement that it planned $10-$12 billion of divestments for 2004-2006. Shell added that it expected $45 billion in capital expenditure in the period.
Shell shocked investors in January by slashing its proven oil and gas reserves by 20 per cent. Subsequent smaller reserves cuts further dented investor confidence.
The scandal caused the ousting of chairman Mr Philip Watts, oil and gas chief Mr Walter van de Vijver and chief financial officer Mr Judy Boynton.
It has led to $150 million in regulatory fines and also cost Shell its "AAA" top-grade credit rating.
In a bid to win back the trust of investors Shell's new management said at a presentation in London that the company would focus on proving reserves and developing production in its upstream oil and gas business, and would also look to extend its leadership in the liquefied natural gas (LNG) sector.
Shell added it had received an approach concerning its downstream global liquid petroleum gas (LPG) distribution and marketing business.
Shell shares were down 1.2 percent at 427 pence in morning trade.
The stock had hit its highest level in over a year yesterday, but has underperformed global rivals BP and Exxon in the wake of the reserves downgrade.
"Shell is such a long turnaround story that BP looks a less risky bet," said Cavendish Asset Management fund manager Mr Paul Mumford.