Shell boss says swoop for BG not just about collapse in the oil price – but admitted cheaper crude played a part
Shell boss Ben van Beurden
The boss of Royal Dutch Shell said his £47bn swoop for BG Group was not just about the collapse in the oil price – but admitted cheaper crude did play a part.
Ben van Beurden insisted the deal was an opportunity for Shell to beef up its operations – particularly through greater exposure to liquefied natural gas (LNG) where BG is a major player.
But he added that the fall in the oil price – from around $115 a barrel last summer to less than $60 last night – and the subsequent fall in the BG share price was a factor.
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BG Group is facing a fresh investor backlash over executive pay in the wake of oil giant Royal Dutch Shell’s £47billion takeover offer.
News of the merger led to job fears. In the UK Shell has around 6,500 staff while BG employs around 1,600. Shell is in the process of laying off 500 people at its North Sea operations where old oil fields are becoming too expensive to operate.
