Shell plans wide cuts in oil exploration division, sources say

Shell (SHEL.L), opens new tab plans to scale back its oil and gas exploration and development workforce by 20% as CEO Wael Sawan widens his cost-saving drive to the highly profitable division after deep cuts in renewables and low-carbon businesses, company sources said.

The restructuring in the exploration and wells development and subsurface units will see hundreds of job cuts around the world, and will be felt in particular in its offices in Houston, The Hague and to a lesser degree in Britain, the sources told Reuters, according to Report.

The planned 20% reduction are subject to consultations with employee representative bodies, the sources added.

Shell's oil and gas production division, known as upstream, which includes the exploration and well development units, accounted for over one third of the company's $28.25 billion in adjusted earnings in 2023.

A Shell spokesman would not comment on the reduction figures.

Shell shares were up 0.6% at 1555 GMT.

Sawan, who took office in January 2023, has vowed to improve Shell's performance to boost profitability and narrow a wide gap in its shares valuation compared with larger US rivals.