Royal Dutch Shell says it will exit oil and gas operations in 10 countries in a drive to deepen cost cuts and narrow its focus.
Speaking in London on Tuesday, Ben van Beurden, Shell’s chief executive officer, said the cuts were due to the company’s $54 billion acquisition of BG Group.
He expressed hope that the new cuts would help to boost Shell’s shares, which he said had underperformed rivals since the BG deal was announced in April 2015.
Although Van Beurden did not say which countries the company might exit, reports have it that Shell is planning to sell its assets in Gabon.
In the long term, the company said it would target shale oil and gas production in North America and Argentina as well as renewable energies hydrogen, solar and wind.
Shell plans to sell $30 billion worth of assets around the world by 2018 and announce it plans to implement a share buyback programme.
Shell in Uganda
In March 2013, Vito Energy announced they were taking over Petroleum giants Shell Uganda to sell the latter’s branded fuels and lubricants.
Shell is using a different approach to pullout from the downstream oil business unlike other brands that completely disappeared from the Ugandan market after buyouts.
Despite having new majority shareholders, Shell continues to be used at all fueling outlets and branded lubricates.
All this happened after the conclusion of a sale contract between Royal Dutch Shell and the two firms where Shell sold majority stake in its African business that deals with retail, distribution and storage of petroleum products.
Currently, it operates in 13 countries including Uganda, Kenya, Namibia, Botswana, Senegal, Tunisia, Morocco and Mali, among others.