![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() by Daniel J. Graeber Aberdeen, Scotland (UPI) May 25, 2016
At least 2,200 additional jobs will be trimmed from the payroll as the industry struggles to move through the downturn, a Shell official said from Scotland. British energy company BG Group became a unit within the corporate structure of Royal Dutch Shell in early February. The $7 billion tie-up was the largest of its kind since Exxon and Mobil joined forces in the 1990s. After the deal closed, Shell said it was closing some of the offices in the United Kingdom for BG Group as both companies move forward under a united structure. Paul Goodfellow, a regional vice president for Shell, said from Aberdeen at least 2,200 additional jobs would be cut as the combined strategy evolves under a strategy to reduce overall costs. "These are tough times for our industry and we have to take further difficult decisions to ensure Shell remains competitive through the current, prolonged downturn," he said in an emailed statement. Voluntary layoffs were opened to BG Group staff as offices closed, though Shell said all internal vacancies were available to them. In its latest announcement, the company said the total number of job losses would be less than 5,000 in 2016 as Shell continues to recruit for its refining and service sectors. Although the combination with BG Group results in widespread redundancies, Shell said combined costs would move lower by about $4 billion for the year. Even though crude oil prices are up roughly 70 percent from early 2016 lows below $30 per barrel, Goodfellow said the market was still depressed when compared with two years ago. "Our integration with BG provides an opportunity to accelerate our performance in this 'lower for longer' environment," he said. Shell in early May published its first earnings report of the year since closing on its deal to acquire British energy company BG Group. The Dutch supermajor said the deal was paying off in terms of output, which is up roughly 15 percent compared with last year. Cash flow for the combined entity increased by $800 million.
Related Links All About Oil and Gas News at OilGasDaily.com
|
|
The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us. |