Oil and gas contractors are already aware that major oil and gas companies are in the process of slashing their operational costs, so it should not come as a surprise to learn that Royal Dutch Shell has confirmed that more jobs cuts are in the pipeline, even though in 2015 the company reduced the number of positions by 12,500.
Royal Dutch Shell CEO Ben van Beurden stated that the job cuts are because the oil and gas giant is continuously striving for efficiency. The company decided to go ahead with workforce reduction due to plunging oil prices and also as a way to cut costs after taking over BG Group for £35 billion.
When Shell launched its bid to take over BG Group, it had 93,000 employees, and BG Group had 5,000 employees. In 2015, the company announced that it would be letting go of 7,500 staff, and now it has just stated that another 5,000 positions will be slashed because of synergies with BG Group.
Van Beurden stated that there could be more job losses in the future; the company will ascertain the situation and then decide whether it needs to reduce its workforce even further. He explained that the takeover of BG Group had resulted in job losses; however, when a company is driving for improvement, it may result in positions either being no longer required, or being relocated to other parts of the world. Van Beurden said that a company could never state that it has finished reducing its staff since this is an ongoing process to ensure efficiency and improvement.
Van Buerden also confirmed that Shell was considering selling its mature assets in the North Sea. The oil and gas company has 65 assets in the region and operates over 30 platforms. While the company would not be leaving the UK as is revealed by its investment in the Shetlands, Shell wants to retain just high-quality assets that have longevity. It intends to sell other assets to a better owner, explained van Beurden.