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RDOUYTCAHL OIL giant Royal Dutch Shell has announced it has

SHELL CUTS shed 6,500 jobs as part of cost-cutting plans as it
seeks to counter falling oil prices.
6,500 JOBS The job cuts comprised part of its $4bn reduction
in operating costs. Shell, which currently employs
about 94,000 people, said it is also scaling back its
oil exploration operations.

The firm announced profits of $3.4bn in the three
months to 30 June, a 35% decrease compared with
last year. It said the job cuts affected contractors as
well as Shell employees, and included job losses at
its operations in the North Sea and cuts resulting
from divestments in Nigeria.

‘PRUDENT APPROACH’
Shell said that it was “planning for a pro-
longed downturn” in oil prices.

The price of oil is currently about $53 a barrel,
sharply down from about $110 a barrel a year ago.

Chief executive Ben van Beurden said: «We have to
be resilient in a world where oil prices remain low
for some time, whilst keeping an eye on recovery.

«We›re taking a prudent approach, pulling on
powerful financial levers to manage through this
downturn, always making sure we have the capac-
ity to pay attractive dividends for shareholders.»

It also announced that it was selling a 33%
stake in its Japanese business,
Showa, to petrochemical
group Idemitsu for about
$1.4bn. Shell said it had seen
$20bn of asset sales in 2014
and 2015, and it expected to
see $30bn in sales between
2016 and 2018.
«Today›s oil price downturn

could last for several years, and
Shell›s planning assumptions reflect today›s
market realities,» the company said.

«The company has to be resilient in today›s oil price
environment, even though we see the potential
for a return to a $70-$90 oil price band in the
medium term.»
In April, Shell announced that it was buying gas
giant BG - the UK’s third-largest energy company
- for £47bn.
In its latest announcement of job losses, Shell said
its deal with BG «should enhance our free cash
flow» and be «a springboard to change Shell into

a simpler and more profitable company».
It added that it planned to reduce costs
further in 2016.

ARUBA TRAVELLER - Friday, July 31 2015 15INTERNATIONAL