The company will mark down its reserves by 1.3 billion barrels - around one year's production - according to a report.
Chief executive Jeroen van der Veer is also expected to say that production growth will be near zero until 2010 in a strategy update tomorrow, the report says.
Shell was at the centre of the biggest crisis in its history in 2004 when it overstated its reserves by a fifth, shaking confidence in the firm and sparking a number of lawsuits which the oil major has settled at a cost of more than £200m.
Mr van der Veer is expected to cite problems in Russia and Nigeria as the reason for the reserves downgrade, the report says.
The Anglo-Dutch company's stake in the vast Sakhalin-2 gas field has been diluted from from 55 per cent to 27.5 per cent fter Russian giant Gazprom bought control of the project in April last year. This is expected to wipe 1.1 billion off reserves.
Meanwhile Shell's production facilities in Nigeria have come under heavy attack from rebels in the oil-rich Niger Delta region.
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