Shell to Pay $352.6 Million Settlement for Overbooking

Royal Dutch Shell announced today that it will pay $352.6 million to settle claims among European and other non-U.S. investors regarding a reserves overbooking scandal. In 2004, Shell abruptly cut its proven oil and gas reserves by 20%, a move that led to the dismissal of three senior executives, a U.S. regulatory probe and a drop in the company's share price. Shell is not admitting to any wrongdoing, but has agreed to pay the sum to non-U.S. institutional investors, including ABP and PGGM, and organizations representing individual shareholders. The settlement remains contingent on a decision by the Amsterdam Court of Appeals that it is binding for all shareholders. Shell plans to offer the same settlement to U.S. investors in proportion to their holdings in the company. The company's shares were up 0.4% to ₤16.93 this morning, giving the business a value of about ₤108 billion.

Sources: Reuters
Commentary: The New Seven Sisters: Today's Most Powerful Energy Companies • Royal Dutch Shell: Growing Investor Interest?
Stocks/ETFs to watch: Royal Dutch Shell [ADR] (RDS.A). Competitors: BP plc (BP), Exxon Mobil Corp. (XOM), Total SA (TOT). ETFs: WisdomTree Europe Total Dividend (DEB), WisdomTree International Energy (DKA), iShares MSCI United Kingdom Index (EWU)

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