Shell cuts 2015 capex again to face oil downturn

[LONDON] Royal Dutch Shell said on Thursday it will further reduce 2015 capital investment to US$30 billion, down by 20 per cent from a year ago as it expects the downturn in oil prices to "last for several years." Shell earlier this year cut its capital expenditure, or capex, to US$33 billion from around US$35 billion in 2014.

The Anglo-Dutch oil and gas company said its operating costs are expected to fall by US$4 billion, or around 10 percent, in 2015 as part of a broad efficiency drive to boost its balance sheet.

Shell said it expects US$30 billion of asset sales between 2016 and 2018, on top of a total of US$20 billion in disposals for 2014 and 2015 combined.

REUTERS