Shell deepens cuts

Cost savings: Synergies from the BG acquisition will provide Shell US4.5bil in savings in 2018, Shell says. – Reuters

LONDON: Royal Dutch Shell Plc cut spending plans further and promised increased savings following its record purchase of BG Group Plc as it continues to adjust to the slump in oil prices.

Europe’s biggest energy company would spend US$29bil this year, it said yesterday. That compares with a May forecast for capital expenditure “trending toward” US$30bil, which was down from an earlier projection of US$33bil. Synergies from the BG acquisition will provide US$4.5bil in savings in 2018, up from an earlier estimate of US$3.5bil.