Royal Dutch Shell plc (Shell) presented a strategic update to shareholders and investors in London. Speaking at the presentation, Shell’s CEO Ben van Beurden said: “Low oil prices are driving significant changes in our industry BG rejuvenates Shell’s upstream by adding deep water and integrated gas positions that offer attractive returns and cash flow, with growth potential. These are industries where Shell has significant capabilities and technologies. With enhanced positions in both of these themes, Shell can focus on the best positions, and deliver a more structured and predictable investment programme.”
Shell has also announced a new, simpler upstream organisation that reflects recent changes in the company’s portfolio that facilitates planning for the integration of BG post-completion of the recommended combination. The new upstream organisation will span Shell’s world-wide conventional oil and gas businesses. It will be led by the current Upstream International Director, Andrew Brown. Shell has made good progress with the BG transaction so far, which has led to, enhanced free cash flow, asset sales and refocused spending resulting in a simpler, more focused company, upstream and downstream cash engines, deep water and LNG. The changes will come into effect on January 1, 2016.
