Royal Dutch Shell has promised to pay thousands of shareholders a total of $352.6 million (£180 million) in compensation for the reserves scandal that sparked the biggest crisis in the oil giant’s history.

The group, “without admitting any wrongdoing”, said today that investors outside the US, mainly in Europe and the UK, would receive a payout after a series of out-of-court settlements.

Private investors are likely to get 13p per share.

A similar £40 million deal is expected for American shareholders in a matter of weeks.

BACKGROUND

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• US pension funds ask Shell to ditch Iran

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• Shell drilling plan heralds Arctic scramble

• Shell chief calls for EU energy supremo

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Given Shell’s record profits last year, it would take under a week for the group to generate the money needed to meet both payments.

It has already set aside £250 million in its accounts for investor compensation.

However, today’s agreement is thought to represent the largest ever class-action settlement in Europe. Anyone who bought Shell stock between April 8 1999 and March 18 2004 qualifies for compensation.

Beat Hess, Shell’s legal director, said: “Shell has actively pursued this agreement.

“For us it is an important step in closing the legal proceedings related to the the recategorisation of reserves.

“We were glad we were able to conclude the settlement agreement for the benefit of all relevant shareholders.”

Today’s deal settles a lawsuit filed in the US last year by Dutch pension funds ABP and PGGM.

It comes three years after Shell stunned the City by admitting it had overstated the amount of proven oil and gas on its books by billions of barrels.

Shares in the group tumbled and the fallout led to the departure of Sir Philip Watts, the chief executive, and Walter van de Vijver, the former exploration chief.

Under today’s agreement, $340.1 million will be paid out to more than 50 pension funds and institutions across the UK and Europe including Morley and UBS through a new body, the Shell Reserves Compensation Foundation.

Just over $12 million has been set aside to meet claims filed over the coming months by private shareholders.

Mr Hess said it could take up to two years for the money to be paid out. If 100,000 private investors filed a “valid claim” they were likely to get around 13p a share.

Shell added that it hoped the $120 million fine paid to the US Securities and Exchange Commission after the reserves scandal would also go to investors.

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