Shell plans massive cuts in its oil exploration division

Shell plans to significantly reduce headcount in its exploration division, with job cuts mainly in the USA, the Netherlands and the UK, as part of a global cost-cutting strategy.

Share:

Shell is planning major staff cuts in its exploration and well development division, potentially affecting hundreds of employees worldwide.
The planned cuts are concentrated mainly in the Houston, The Hague and UK offices.
This initiative is part of a wider strategy led by CEO Wael Sawan to optimize costs and refocus the company’s resources on its most profitable activities.
Shell hopes to achieve a structural cost reduction of $2-3 billion by 2025. Oil exploration is crucial to the renewal of Shell’s reserves and the discovery of new resources, but the review of its strategic priorities is leading the company to consider streamlining this activity.
These adjustments follow similar measures already taken in the renewable energies and low-carbon sectors, where Shell has reduced its commitments.

Reorganization and strategic refocusing

The planned reorganization goes hand in hand with Shell’s desire to maintain oil production at stable levels while increasing its presence in the liquefied natural gas (LNG) market, considered strategic for future growth.
This orientation has led to a reassessment of environmental objectives, with a weakening of emissions reduction targets for 2030 and the deletion of those for 2035, reflecting an adjustment to the realities of the energy market.
At the same time, Shell is pursuing the sale of certain less strategic assets, including refineries and electricity distribution units.
These decisions are aimed at freeing up capital for more profitable activities and meeting investors’ expectations in terms of financial performance.

Market impact and industry outlook

Investors have reacted positively to this strategic reorientation, with the Shell share price rising by over 8% this year.
This outstripped the performance of several European and American competitors, testifying to renewed confidence in the company’s financial management.
Shell’s focus on its most profitable segments could prompt other industry players to review their strategies and priorities, especially in the face of uncertain energy demand and pressures on profitability.
Shell’s focus on operational efficiency and short-term financial performance reflects a pragmatic adaptation to current economic realities.
This approach could influence the way the energy sector as a whole approaches the management of its resources and its commitments to the energy transition.

Petro-Victory Energy announces the completion of drilling operations for the AND-5 well in the Andorinha field, Brazil, with positive reservoir results and next steps for production.
The Colombian prosecutor’s office has seized two offices belonging to the oil company Perenco in Bogotá. The company is accused of financing the United Self-Defense Forces of Colombia (AUC) in exchange for security services between 1997 and 2005.
Indonesia has signed a memorandum of understanding with the United States to increase its energy imports. This deal, involving Pertamina, aims to diversify the country's energy supply sources.
VAALCO Energy continues to operate the Baobab field by renovating its floating platform, despite modest production. This strategy aims to maintain stable profitability at low cost.
An empty reservoir exploded at a Lukoil-Perm oil facility in Russia, causing no injuries according to initial assessments pointing to a chemical reaction with oxygen as the cause of the accident.
The British Lindsey refinery has resumed fuel deliveries after reaching a temporary agreement to continue operations, while the future of this strategic site remains under insolvency proceedings.
BP and Shell intensify their commitments in Libya with new agreements aimed at revitalizing major oil field production, amid persistent instability but rising output in recent months.
The private OCP pipeline has resumed operations in Ecuador following an interruption caused by heavy rains, while the main SOTE pipeline remains shut down, continuing to impact oil exports from the South American country.
McDermott secures contract worth up to $50 million with BRAVA Energia to install subsea equipment on the Papa-Terra and Atlanta oil fields off the Brazilian coast.
Saudi Aramco increases its oil prices for Asia beyond initial expectations, reflecting strategic adjustments related to OPEC+ production and regional geopolitical uncertainties, with potential implications for Asian markets.
A bulk carrier operated by a Greek company sailing under a Liberian flag suffered a coordinated attack involving small arms and explosive drones, prompting an Israeli military response against Yemen's Houthis.
The Canadian government is now awaiting a concrete private-sector proposal to develop a new oil pipeline connecting Alberta to the Pacific coast, following recent legislation intended to expedite energy projects.
Petrobras is exploring various strategies for its Polo Bahia oil hub, including potentially selling it, as current profitability is challenged by oil prices around $65 per barrel.
Brazilian producer Azevedo & Travassos will issue new shares to buy Petro-Victory and its forty-nine concessions, consolidating its onshore presence while taking on net debt of about USD39.5mn.
Major oil producers accelerate their return to the market, raising their August quotas more sharply than initially expected, prompting questions about future market balances.
Lindsey refinery could halt operations within three weeks due to limited crude oil reserves, according to a recent analysis by energy consultancy Wood Mackenzie, highlighting an immediate slowdown in production.
The flow of crude between the Hamada field and the Zawiya refinery has resumed after emergency repairs, illustrating the mounting pressure on Libya’s ageing pipeline network that threatens the stability of domestic supply.
Libreville is intensifying the promotion of deep-water blocks, still seventy-two % unexplored, to offset the two hundred thousand barrels-per-day production drop recorded last year, according to GlobalData.
The African Export-Import Bank extends the Nigerian oil company’s facility, providing room to accelerate drilling and modernisation by 2029 as international lenders scale back hydrocarbon exposure.
Petronas begins a three-well exploratory drilling campaign offshore Suriname, deploying a Noble rig after securing an environmental permit and closely collaborating with state-owned company Staatsolie.