Shell expected to slash jobs and spending
By LAURA CHESTERS FOR THE DAILY MAIL
Royal Dutch Shell is planning a £20bn sell-off of assets to create a leaner oil giant after its £47bn swoop for rival BG Group.
Shell has snapped up BG to expand its liquefied natural gas business and Brazilian deepwater wells but the deal also creates a sprawling £200bn behemoth that will need to be cut down to size.
Shell’s chief executive Ben van Beurden said he ‘will reshape the combined portfolio’ to create a ‘more focused company in a volatile oil price world’.
The Anglo-Dutch giant is expected to slash jobs and spending and confirmed the deal will enable £670m of operational savings, £1bn of exploration savings and a total cut in spending to less than £27bn. But fears it has paid too much for its rival spooked investors and it shed £4.6bn in value as shares slumped almost 9 per cent to close down 189p at 2019.5p.
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