Shell is planning a major restructuring as part of “a complete overhaul” to reduce greenhouse gas emissions to net zero by 2050.
“The refining portfolio is expected to be transformed during the energy transition … into six high-value energy and chemical parks integrated with Chemicals,” Shell CEO Ben Van Beurden said.
“This is expected to be followed by further evaluation and decisions on assets that could result in the recognition of significant provisions and charges to earnings, some as early as in the fourth quarter 2020.”
In line with plans to shrink its oil and gas portfolio, it said on Thursday it would cut back its oil refineries from 14 sites to six “energy and chemical parks”, namely at Deer Park (US), Norco (US), Pernis (NL), Pulau Bukom (Singapore), Rheinland (Germany) and Scotford (Canada).
The Anglo-Dutch company hit record earnings from its vast retail division, despite the impact on demand of the COVID-19 pandemic, which it said continued to generate “significant uncertainty”.
Van Beurden said that 2019 was likely the “high point” of Shell’s oil production, when it reached around 1.7 million barrels per day, as it shifts more capital to the renewables, hydrogen and power business.