Anglo Dutch offshore oil and gas major, Royal Dutch Shell, has announced that it will be cutting a further 6,500 jobs.
Shell, who today released their 2015 second quarter financial results, said that the cuts would be made, due to the extended period of lower oil prices.
The company’s results showed their second quarter profits were down by 37 percent on the same period last year.
To further increase savings, Shell also announced today that they will be increasing the amount of asset disposals planed over the next few years, to US$50 billion.
To reach this figure, the company said that it would be selling its 33 percent stake in its Showa onshore refinery in Japan, to the Idemitsu group fro US$1.4 billion.
Shell said that by taking the necessary moves now, it will be better placed to push ahead with its US$70 billion acquisition of UK based offshore oil and gas major BG Group- reported recently by Offshore Post.
Royal Dutch Shell Chief Executive Officer, Ben van Beurden said.”We have to be resilient in a world where oil prices remain low for some time, whilst keeping an eye on recovery,”
“As our results today show, we’re successfully reducing our capital spending and operating costs, and delivering a competitive performance in today’s oil market downturn.
BG Group Acquisition
On the matter of the under review acquisition of competitor UK based oil and gas major BG Group, van Beurden said, “We will re-shape the company once this transaction is complete. This will include reduced exploration spend, a fresh look at capital allocation in longer term plays, and asset sales spanning upstream and downstream. This should concentrate our portfolio into fewer, higher value positions, where we can apply our know-how with better economy of scale. In essence, we ‘grow to simplify’.
It isn’t yet clear from exactly where the job cuts will be made. Offshore Post will update this article on this matter when we get further information.