Royal Dutch Shell, the Anglo-Dutch oil giant, is to pay its former head of exploration and production €3.8m ($4.7m) in severance pay. Walter van de Vijver resigned amid the furore over revelations that Shell had overestimated oil reserves by 20%.

Shell said in a statement on Thursday it had based the amount - payable in instalments and "subject to continuing co-operation with and review by the relevant authorities" - on 25 years' service to normal retirement date.