By Jerin Mathew: July 20, 2015
Anglo-Dutch energy major Royal Dutch Shell plans to cut its 2015 capital expenditure, as the company looks to balance its accounts in light of a 50% decline in oil prices since June 2014.
The Financial Times reported that Shell’s CEO Ben van Beurden is expected to outline the cut in capital investment, when the company releases its interim report on 30 July.
The capital spending budget at Shell is expected to be revised lower, “by several billion dollars from the $33bn (£21.1bn, €30.5bn) announced at the end of April, reflecting project deferrals”, the FT reports.
Nevertheless, the company now expects billions of dollars more in savings from its proposed £55bn takeover of BG Group than previously disclosed.
The company has told investors and analysts that it expects value synergies in “a multiple” of the $1bn in annual projected savings from merging head offices and other cost-cutting measures.
The boards of Shell and BG in April reached an agreement on the terms of the cash and share offer made by Shell – one of the biggest deals in the energy sector.
As per the terms, Shell will provide £3.83 in cash and 0.4454 Shell B shares for each BG share.
The deal earlier received approval from US regulators – the first clearance from a group of regulators including the European Union, China, Australia and Brazil.
Shell’s share price has gone down by 13% since the BG deal was announced in April, as investors have been concerned about the future of the merged entity, given the plunge in oil prices. Shell needs oil prices of $90 per barrel for the deal to work, according to many analysts.
However, Shell CFO Simon Henry defended the deal, saying it worked at $70 a barrel. He noted that the deal would add immediately to cash flow and the dividend would be maintained.
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A number of analysts claimed that the enlarged group’s Brazilian deepwater oil portfolio and its combined LNG trading and marketing operations would lead to economies of scale.
More about Shell
- US clears £47bn mega merger between Shell and BG Group
- Opec’s former research boss sees Brent dropping to about $40 in 2015
- Shell and Total believe future is in natural gas and not in coal
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
