Shell set for £189m assets write-down
Embattled petroleum group, Royal Dutch/Shell, will take a $330m (£189m) write-down on the value of exploration assets acquired through its $3.5bn takeover of Enterprise Oil.
Analysts claim that while the eventual impact of the writedown would be small, it was disappointing news that Shell paid too much for Enterprise Oil, reported the Financial Times.
‘We didn’t think the acquisition was an excellent idea and this confirms what we thought,’ said Vincent Zelenko, oil analyst at JP Morgan.
The news follows a series of announcements about the over estimation of its oil reserves, which caused investor outrage and the eventual removal of top management.