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Shell urges investors to reject oil sands vote

Reuters UK

Mon Apr 12, 2010 5:32pm BST

LONDON, April 12 (Reuters) – Royal Dutch Shell Plc (RDSa.L) told investors to reject a shareholder motion tabled for its Annual General meeting next month which would require the oil major to review its multi-billion dollar investments in Canada’s oil sands.

Religious and environmental shareholders oppose Shell’s oil sands activities because this form of oil production uses more water and emits more carbon dioxide than pumping traditional crude.

The groups say growing concerns about climate change could lead to high charges for emitting CO2 that would make oil sands projects unprofitable.

But Shell said it had already considered potential charges for CO2 in its initial business plans, and so shareholders should reject the plea for a new review into the projects.

Shell also fears its business in other areas could be affected if the shareholder group is successful in forcing a review.

“It would set a precedent which, if applied more generally to the company’s major investment opportunities, would add unnecessary costs and duplication of effort,” the company said in a posting on its website.

(Reporting by Tom Bergin; editing by Simon Jessop)

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