The Royal Dutch Shell allayed its investors’ concerns by announcing plans for further benefits and cost cuts aimed at making its planned $70 billion takeover of BG Group work.
The Anglo-Dutch group, which hopes to complete the deal early next year, said it now expected synergies to increase by $1 billion to $3.5 billion for the combination which will make Shell a leader in liquefied natural gas (LNG) and offshore oil production in Brazil, according to an agency.
Shell, which last week reported a huge third-quarter loss due to $8 billion of write-offs in Alaska and Canada, said it would reduce its costs by $11 billion in 2015 as it tackles a prolonged period of lower oil prices, currently trading below $50 per barrel.
"Shell is becoming a company that is more focused on its core strengths, a company that is more resilient and competitive at all points in the oil price cycle and that has a more predictable project development pipeline. We'll grow to simplify," Chief Executive Officer Ben van Beurden said in a statement ahead of a company strategy day in London.
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