Shell to cut up to 10pc of workforce by 2022: Update

Spanish Market: Crude oil, Natural gas
30/09/20

Adds details from internal document

Shell expects to cut up to 9,000 jobs by the end of 2022, more than 10pc of its workforce, as part of a structural reorganisation to shift towards a low-carbon future.

"We have to be a simpler, more streamlined, more competitive organisation that is more nimble and able to respond to customers," chief executive Ben van Beurden said. "We have too many layers in the company: too many levels between me, as the CEO, and the operators and technicians at our locations."

The firm will look to cut between 7,000-9,000 jobs over the next two years. Shell will reduce the number of jobs in the top three layers of the company by nearly a fifth, van Beurden told employees in an internal document seen by Argus.

The total job cuts include around 1,500 people who have already agreed to take voluntary redundancy this year, but they exclude those who leave Shell because of divestments. Shell had a workforce of 83,000 at the end of last year. It said the redundancy programme, combined with other measures, should save $2bn-2.5bn/yr by 2022.

Earlier this year Shell cut its dividend for the first time since the 1940s, partly in preparation for the energy transition shift, saving it $10bn this year and reducing the need for urgent redundancies. But the firm said today that it plans to make its traditional business more focused as part of a low-carbon future. It has already announced plans to become a net-zero emissions energy business by 2050 or sooner.

"We will continue to invest, but it will not be about how many barrels of oil, or cubic feet of gas, [the] Upstream [business] produces, but how much it adds to the bottom line," van Beurden said. "Upstream will be critical to Shell as we change — we need it to be very successful, so we have the financial strength to invest further in our lower-carbon products."

Shell is seeking to sell five refineries to reduce its fleet to fewer than 10, and plans to grow its integrated gas business. The new "reshaped Shell" will be set up with a strong focus on helping customers decarbonise in sectors such as aviation, shipping and road transport, van Beurden said. "We have to change the type of products that we sell."

Shell plans to establish a "sectors and decarbonisation" business in its downstream segment, according to the internal document. And it plans to integrate a number of departments under one structure. For example, IT, digital and data capabilities will move into the projects and technology organisation.

Shell's decision to reduce its workforce follows in the footsteps of competitor BP, which announced in June it would cut 14pc of its global workforce — around 10,000 jobs — as a result of the oil downturn brought on by Covid-19 and citing the energy transition. Shell plans to complete a detailed design of the company by early January 2021, and for the reshaped firm to become fully operational by 1 July next year.

By Rowena Edwards

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18/03/25

State of emergency after Nigeria pipeline attack:Update

Updates with state of emergency declared London, 18 March (Argus) — The Nigerian government has declared a state of emergency in Rivers State, after an apparent attack on the Trans-Niger Pipeline (TNP) halted crude movements to Nigeria's Bonny Light export terminal. A fire occurred on the pipeline at the border of the Kpor and Bodo communities, and the pipeline's management has shut down the affected section, the Rivers State police said. Operator Renaissance Africa said it is responding to an incident. The 180,000 b/d, 60km TNP carries crude to the Bonny terminal, from where the Bonny Light grade is exported. TNP was operated until 14 March by Shell subsidiary SPDC . The pipeline has been the target of repeated oil theft, vandalism and sabotage in the past, and Shell shut the TNP entirely between April and October 2022. Nigerian President Bola Tinubu today said the resumption of "disturbing incidents" had happened "without the [state] governor taking any action to curtail them". Tinubu suspended the Rivers State governor and his deputy and said the region will be under federal control, effective immediately. It is unclear what if any effect this will have on the region's oil production, a source within state-owned oil firm NNPC told Argus . But it appears the pipeline attack has halted loadings at the Bonny terminal. The Almi Voyager was the most recent tanker to load there, with around 550,000 bl of crude on 14 March. Loading operations are seemingly halted as the pumping of 475,000 bl to NNPC's 210,000 b/d Port Harcourt refinery was the next scheduled operation before the explosion. Market sources said they are monitoring the situation and awaiting a possible declaration of force majeure by Renaissance Africa. Sources added that loading operations at the export terminal were already running up to two weeks behind schedule. By Elena Mataro, Adebiyi Olusolape and Sanjana Shivdas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Norway's Equinor sells first Johan Castberg crude cargo

18/03/25

Norway's Equinor sells first Johan Castberg crude cargo

London, 18 March (Argus) — Norway's state-controlled Equinor has sold its first cargo of crude from the new Johan Castberg field in the Barents Sea to Spanish firm Repsol ahead of first oil next month, according to market sources. Repsol will probably run the crude at its 220,000 b/d Bilbao refinery, the sources said. The Johan Castberg field had been expected to come on stream in the final quarter of 2024, but start-up was delayed, first to January-February this year because of bad weather, and more recently to April. Equinor delayed the first loading of Johan Castberg crude to 14-17 April from 21-24 February. The April export programme comprises four 700,000 bl cargoes, with Equinor loading three and Johan Castberg partner Var Energi loading the fourth. Three of the April cargoes are unsold, and Equinor is planning to issue separate tenders for them. It is not immediately clear what price the first cargo fetched. Traders have said previously that the grade could be priced at a premium to sweet middle distillate-rich Norwegian grades such as Troll or Alvheim. Johan Castberg crude will also be rich in middle distillates and have have a gravity of 34.7°API with a sulphur content of just 0.16pc when the field starts production, according to an assay. The field is expected to produce 220,000 b/d at plateau and has estimated recoverable reserves of 450mn-650mn bl. Equinor operates Johan Castberg with a 50pc stake, Var Energi has 30pc and Norwegian state-owned Petoro has 20pc. By Lina Bulyk and Sanjana Shivdas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trans-Niger Pipeline fire halts crude to Bonny terminal

18/03/25

Trans-Niger Pipeline fire halts crude to Bonny terminal

London, 18 March (Argus) — A fire on the Trans-Niger Pipeline (TNP) appears to have halted crude movements to Nigeria's Bonny Light export terminal. The Rivers State police said a fire occurred on the pipeline at the border of Kpor and Bodo communities. It said the pipeline's management shut down the affected section. Operator Renaissance Africa said it is responding to an incident. The 180,000 b/d, 60km TNP carries crude to the Bonny terminal, from where the Bonny Light grade is exported. TNP was operated until 14 March by Shell subsidiary SPDC . The pipeline has been the target of repeated oil theft, vandalism and sabotage in the past, and Shell shut the TNP entirely between April and October 2022. A source within state-owned NNPC told Argus the Almi Voyager was the most recent crude tanker to load at the Bonny terminal, with around 550,000 bl of crude on 14 March. Loading operations are seemingly halted as the pumping of 475,000 bl to NNPC's 210,000 b/d Port Harcourt refinery was the next scheduled operation before the explosion. Market sources said they are monitoring the situation and awaiting a possible declaration of force majeure by Renaissance Africa. Sources added loading operations at the export terminal were already running up to two weeks behind schedule. By Elena Mataro, Adebiyi Olusolape and Sanjana Shivdas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump set to meet with oil, gas executives

17/03/25

Trump set to meet with oil, gas executives

Washington, 17 March (Argus) — President Donald Trump is scheduled to meet this week with US oil and gas executives to discuss policies that would help achieve "energy dominance", according to an industry group participating in the meeting. Trump and his team are scheduled to meet on Wednesday with executives that serve on the leadership committee of the American Petroleum Institute (API) and staff from the influential industry group, API said. Trump has enjoyed close ties with many oil executives, who have supported his regulatory initiatives and tax cuts, even as his tariff policies have raised concerns among some industry officials. "We appreciate the opportunity to discuss how American oil and natural gas are driving economic growth, strengthening our national security and supporting consumers with the President and his team," API said. The White House did not respond to a request for comment. The upcoming meeting is set to broadly focus on how to achieve Trump's goal for "energy dominance". API last year released a detailed policy roadmap, with plans to scrap regulations that would require more electric vehicles, restart licensing of US LNG export facilities, expand offshore oil and gas leasing, repeal a new $900/t fee on methane leaks, expedite permitting and e retain corporate tax cuts from 2017. The Trump administration has already accomplished some of those policies, and is starting work on others. The White House sees cutting energy prices through deregulation and expanded leasing as part of its strategy to ease inflation. Trump last week said he was "very happy" with oil prices at $65/bl, while US treasury secretary Scott Bessent has set a target of $50/bl. But producers would have to crimp production in the Permian basin at that price, former Pioneer Natural Resources chief executive Scott Sheffield said last week. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Carney to strike while iron, steel and aluminum are hot

17/03/25

Carney to strike while iron, steel and aluminum are hot

Calgary, 17 March (Argus) — Newly minted Canadian prime minister Mark Carney will likely call a national election soon to both secure his seat in Canada's parliament and win a public mandate in the ongoing trade war with the US. Carney has helped revive the Liberal party's fortunes and narrow the gap between main rival Conservative leader Pierre Poilievre in recent weeks, raising the odds he will call for a national election soon. Poilievre has lost momentum because of rising anti-US sentiment in Canada while the governing Liberals have capitalized on newfound attention in what many in the country see as a fight against US president Donald Trump. An election would occur 37-51 days after being called, meaning Canadians could go to the polls as early as late-April. Because Carney did not hold elected office when his party chose him to succeed Justin Trudeau, he must also find a parliamentary seat to run for in the election. At the same time voters will be voting on all other seats in parliament, essentially putting the Liberal party's nine-year run leading the country in the balance. Parliament has been out of session for several months after Trudeau asked for an extension of a regular recess while his party chose a new leader. It is scheduled to return on 24 March although Carney could ask to extend it again. If it does return to session, Carney will be without a seat and unable to defend himself against Conservative attacks in the House of Commons. Until then, Carney will continue to lead Canada's response to the US-induced trade war, which has included tariffs on energy and a wide range of other imports imposed then removed earlier this month, as well as ongoing tariffs against steel and aluminum imports. A tight contest A virtual tie in the polls for Canada's two largest federal parties promises a tight race for the expected spring election where Carney will try to shake unpopular policies from Trudeau's time — some of which Carney had formerly endorsed — while addressing louder calls by Canadians for exporting energy to non-US countries. Both parties appear to like their chances, but the US-Canada trade war has meant Liberal ministers leading important areas of policy are dominating national media, leaving Poilievre searching for airtime. Poilievre warns voters that Carney is an out-of-touch elitist similar to his close ally Trudeau. Carney, who has held prominent roles in banking and on corporate boards, counters he has "actually worked in the private sector" while characterizing Poilievre as a lifelong politician. But Carney still knows he must distance himself from Trudeau. He began that process last week by using his power to eliminate the consumer carbon tax , beating Poilievre — who has been calling for this for years — to the punch. Diversifying trade, inter-provincially and internationally, is top of mind for both leaders, but the Liberals still seem reluctant to talk about oil pipelines, aside from the recently expanded and federally-owned 890,000 b/d Trans Mountain system. The system has provided flexibility for crude exporters looking to bypass the US and is now seen in a new light by many outside of the industry amid the trade war. Canada will be a superpower in "both conventional and clean energies" by creating new trade corridors with "reliable trade partners", Carney said on 14 March. But the country's largest oil producing provinces have their reservations. "Mark Carney is responsible for net zero banking," Alberta premier Danielle Smith said last week at the CERAWeek by S&P Global conference in Houston, Texas. "He's been on a war path against the energy industry his entire career." Saskatchewan premier Scott Moe meanwhile urged Carney to cancel this week's visit to Europe, his first international trip as prime minister, and instead prioritize escalating trade wars with both the US and China. "There are higher stakes at play here," Moe said. "We don't have a trade war with the European Union today." By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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