Royal Dutch Shell is to end oil and gas operations in up to 10 countries as it further reduces spending.
The accelerated cost cutting comes as Europe’s largest oil company narrows its focus after buying the BG Group (formerly British Gas) for the equivalent of 47.5 billion euros.
Chief Executive Ben van Beurden hopes the new cuts will help boost Shell’s shares which have been under pressure because of the BG deal – an expensive acquisition even as oil prices fell.
“Our strategy should lead to a simpler company, with fundamentally advantaged positions, and fundamentally lower capital intensity. Today, we are setting out a transformation of Shell,” van Beurden said.
There will be cost savings from the amalgamation with BG with significant overlaps in operations in areas including the North Sea, Australia and Brazil.
Cutbacks include 12,500 layoffs of workers this year.