Royal Dutch Shell will exit oil and gas operations in up to 10 countries in a drive to deepen cost cuts and narrow its focus following its $54 billion acquisition of BG Group.
Presenting its strategy following the close of that deal in February, the Anglo-Dutch company outlined plans to target annual spending of $25 billion to $30 billion until the end of the decade.
It lowered its planned 2016 capex to $29 billion in a third cut from an initial $35 billion.
Shell also raised its target for savings from the integration of BG to $4.5 billion, up $1 billion from previous guidance.
Chief Executive Officer Ben van Beurden hopes the new cuts will help boost Shell’s shares, which have underperformed rivals since the BG deal was announced in April 2015.
He said the company would focus its short-term growth on deepwater projects in Brazil and the Gulf of Mexico.
Deepwater production could double to some 900,000 barrels of oil equivalent per day in 2020, the company said.
“Our strategy should lead to a simpler company, with fundamentally advantaged positions, and fundamentally lower capital intensity. Today, we are setting out a transformation of Shell,” van Beurden said.