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Shell says could exit 10 countries

Shell says could exit 10 countries

LONDON: Energy giant Royal Dutch Shell on Tuesday said it could exit up to 10 countries under a previously announced plan to sell oil and gas assets over two years.

Following its recent huge takeover of rival BG Group, the expanded company expects also to make higher cost savings than previously announced, Shell said in a statement.

The Anglo-Dutch group said it anticipated savings of $4.5 billion (4.0bn euros) in two years’ time, $1.0bn more than previously forecast.

In another update, Shell said it had “earmarked up to ten per cent of… oil and gas production, including five to ten country exits, for disposal”.

While planned asset sales remained unchanged at $30bn, Shell trimmed 2016 planned investment to $29bn, as energy companies worldwide battle low oil prices.

Shell’s statement added: “We are announcing an increase in expected deal-related synergies, from the $3.5bn set out in the prospectus, to $4.5bn on a pre-tax basis in 2018, an increase of some 30 per cent.” Shell shares were trading around 2.7pc higher in London afternoon trading, topping the capital’s benchmark FTSE 100 index.

The company recently completed a 47bn ($68bn, 60bn euros) takeover of smaller British rival BG Group, in a deal aimed at strengthening Shell’s position in the liquefied natural gas (LNG) market.

Meanwhile owing to the takeover as well as low oil prices, Shell is cutting at least 12,500 jobs over two years to the end of 2016.

Courtesy : Dawn News



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