Shell to make large cuts in its oil exploration division: sources

Shell will cut its oil and natural gas exploration and production workforce by 20%, according to company sources. CEO Wael Sawan is extending his cost-saving efforts to this highly profitable division following the deep cuts made in renewables and low carbon businesses.

Sources say that the restructuring of the exploration, wells development, and subsurface units is expected to result in hundreds of job losses around the globe, but will be most felt in Britain and The Netherlands.

Sources added that consultations will be held with the employee representative bodies to determine the exact 20% reduction.

Shell's spokesperson refused to comment on the figures.

Shell aims to generate more value while emitting less carbon dioxide by focusing on performance and discipline across the entire business. Shell stated in a press release that it would reduce structural operating costs by $2-3 billion dollars by the end 2025.

Sawan, who assumed office in January 2023 has pledged to improve Shell’s performance in order to boost its profitability and narrow the wide gap in its share valuation in comparison with larger U.S. competitors.

(source: Reuters)