Baku. 23 December. REPORT.AZ/ Royal Dutch Shell PLC cut its planned capital spending for 2016 by $2 billion, to $33 billion, continuing to cope with low oil prices as it moves to complete its acquisition of BG Group PLC early next year, Report informs referring to the Shell official website.
The spending announcement came as the Anglo-Dutch oil company published several key documents on its website in preparation for the main remaining hurdle to the deal: a shareholder vote, scheduled to take place in January. In the months since the deal was announced, some investors have expressed concerns about its cost in the face of tumbling oil prices-an issue Shell’s management has been at pains to address.
Shell has already taken action to cut costs and reduce spending this year by $12 billion, but Tuesday’s announcement of a $33 billion target for next year is $2 billion below the company’s previous guidance.
The prospectus and circular published on the company’s website Tuesday, following unanimous recommendation by the Shell board, are another opportunity for the oil major to outline the acquisition’s potential benefits.