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Wednesday, 8 June 2016

Royal Dutch Shell lowers domestic investment plan by USD 100 mn, plans to exit countries due to cost savings

Royal Dutch Shell has lowered its investment plan for Egypt to USD 342 mn from USD 442 mn for the next fiscal year, an Oil Ministry official told Al Borsa. Shell has reduced its investments due to rising receivables from the government for gas produced from its concessions, the official added. The move appears to be part of a wider plan by Shell to increase cost savings to USD 4.5 bn following its USD 54 bn acquisition of BG Group, according to Reuters. Shell said on Tuesday it will exit oil and gas operations in up to 10 countries and sell 10% of its production as part of a USD 30 bn asset sale plan by 2018. Shell, which operates today in more than 70 countries, is looking to concentrate on 13 countries, including Brazil, Australia, and the US. The story does not speculate on which countries Shell is looking to exit.

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