Shell to return to growth as reserves jump

Royal Dutch Shell said it was planning a return to robust growth in oil and gas production after years of decline, as it unveiled strong reserves additions that would underpin longer term growth.

Europe's largest oil company by market value said it is targeting output of 3.5 million barrels of oil equivalent per day in 2012, up from 3.15 million in 2009 – equivalent to an annual growth rate of 3.5 per cent.

The Hague-based company has seen its production fall each year for the last seven years.

Shell also predicted growth beyond 2012, underpinned by a new focus on exploration.

The company said it added 3.4 billion barrels in reserves in 2009 – equivalent to almost three times the amount of oil and gas it pumped.