LNG giant Royal Dutch Shell said it would cut jobs in Australia following the recent merger with the BG Group.
Shell has earlier flagged around 2,800 job cuts worldwide following the takeover of LNG player BG.
“Shell has commenced conversations with employees about business efficiency and staffing levels – as a result of combining it with the previously BG-owned QGC – a process that will lead to job reductions,” Paul Zennaro, Shell Australia spokesman, said.
QGC is Australian natural gas explorer and producer and operates the QCLNG project on Curtis Island that began commercial operations in May 2015.
Shell has said it plans to cut around 10,300 jobs worldwide, including the job reductions related to the BG deal, as the Hague-based company is slashing costs in a low oil price environment.
“The company said last year that in a difficult commodity price environment the two businesses must be more competitive together than they were separately, and that reducing staff numbers in head office locations was a key part of bringing down costs,” Zennaro said.
“Shell maintains an ambitious growth agenda in Australia, and projects such as Prelude FLNG and QGC’s Charlie expansion will provide long term jobs for Australians in regional locations.
“A majority of employees impacted by the reorganisation will be from corporate head offices, and where possible they will be provided with redeployment opportunities,” he said.
Worth mentioning, Shell announced last week it would close BG Group’s head office in Reading by the end of this year following the merger that was completed in February.
The BG deal is Shell’s biggest ever acquisition and the largest oil and gas deal since Exxon bought Mobil in 1999. The combination created the world’s largest LNG company with the combined group’s equity LNG capacity expected to be 44 mtpa in 2018, compared to Shell’s 26 mtpa in 2014.
LNG World News Staff