Shell pressured as BP pumps cash

OIL giant BP is expected to raise the pressure on old rival Shell on Tuesday by unveiling annual profits that will beat 2000's record $12.2bn.

Royal Dutch/Shell faces shareholder calls for big changes, including a unified board and a stronger chief executive, after shocking investors by slashing 3.9bn barrels off reserves.

BP boss Lord Browne has no plans to downgrade his proven oil assets. Though US regulators are tightening guidelines, BP remains confident about its figures.

This applies even to the assets of its Russian joint venture with TNK, where some remain sceptical and expect the US watchdog to be especially vigilant.

BP's quarterly profit is expected to near $3bn (£1.6bn), thanks to high oil and gas prices and an 8% output surge at TNK-BP.

The joint venture faces a domestic row by buying in Russia at $8 a barrel and selling abroad at nearly $29.

Nonetheless, BP investors still worry about output growth, and the longer-term dangers of a weaker oil price. At 421p, the shares have fallen 38% since September 2000, despite three years of blockbusting profits.

Lord Browne is seeking to challenge analysts' assumptions that crude prices will fall from $29 to $15 a barrel.

Oil cartel the Organisation of Petroleum Exporting Countries (OPEC) should help. It is expected to resist calls to boost output at its Tuesday meeting.