Shell's two most senior directors quit today amid a continuing crisis of investor confidence over an oil and gas reserves downgrade by the company two months ago that shocked the markets.
In a statement that made no reference to reasons for their departure, the Anglo-Dutch oil giant said chairman, Mr Phil Watts and the head of the company's core oil and gas division Mr Walter van de Vijver, would leave with immediate effect.
The company's share price, which tumbled in the aftermath of Shell's 20 per cent cut to its proved reserves on January 9th, climbed by three per cent.
"I think he has done the honourable thing post the reserves debacle. I think he was under so much pressure that he had no choice. Arguably, it might bring the unification of the board that much closer," said Investec analyst Mr Bruce Evers.
Some investors had called for Mr Watts' head, but few had expected him to go ahead of his retirement date in June 2005. Many had seen Mr van de Vijver as his successor. "There was a lot of bad feeling about Shell's management," said one share trader. "I'm just surprised the resignation has taken so long. The initial bounce in the share price is not surprising but it may not last."
Mr Florian van Laar, a fund manager with Eureffect, said: "This is great news because Watts was the man who was behind the reserves warning. (New chairman) Mr Van der Veer has a good name and standing and this means Shell is trying to clean the slate and start afresh."