Shell halts investment in Nigeria, sacks 10,000

By ODUNEWU SEGUN

AS a result of the downturn in global economy, especially in the oil sector, Royal Dutch Shell has announced its intention to sack 10,000 of its workforce as well as the suspension of investment in the Bonga deep water project.

Speaking on the development, Chief Executive Officer of the company, Ben Van Beurden said for 2016, Shell has exited the Bab sour gas project in Abu Dhabi, and are postponing final investment decisions on LNG Canada and Bonga South West in deep water Nigeria. Operating costs and capital investment have been reduced by a total of $12.5 billion as compared to 2014, and we expect further reductions in 2016, he announced.

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“We are making substantial changes in the company, reorganising our Upstream, and reducing costs and capital investment, as we refocus Shell, and respond to lower oil prices.

As we have previously indicated, this will include a reduction of some 10,000 staff and direct

contractor positions in 2015-16 across both companies”, he said.

Royal Dutch Shell has announced a 44 percent drop in total earnings for the last quarter of 2015 compared to 2014.According to figures released by the oil company, fourth quarter 2015 CCS earnings were $1.8 billion compared with $3.3 billion for the fourth quarter of 2014, a decrease of 44%.

It noted the fourth quarter 2015 earnings were positively impacted by non-cash net gains of some $0.3 billion related to currency exchange rate effects on deferred tax positions.
Full year 2015 CCS earnings were also negative dropping to $10.7 billion compared with $22.6 billion in 2014.

“Shell will take further impactful decisions to manage through the oil price downturn, should conditions  warrant that. Shell’s dividends for 2015 were $1.88 per share, and are expected to be at least $1.88 per share in 2016, as previously announced”, he said.