Royal Dutch Shell
www.shell.com
www.shell.com
Royal Dutch Shell consists of the upstream businesses of Exploration & Production and Gas & Power and the downstream businesses of Oil Products, Chemicals and Oil Sands with 104,000 employees in more than 110 countries.
Royal Dutch Shell to spend US$31-32 billion in 2009 to build new capacity
Royal Dutch Shell said it is continuing with plans to build new upstream and downstream capacity and plans to spend some US$31-32 billion in 2009 in oil and gas fields with around 1 million barrels oil equivalent per day of capacity, and raising the liquefied natural gas (LNG) capacity by 40 percent over 2008, among other investment projects.
Organic reserves additions including oil sands for 2008 were 1.1 billion boe, compared to 1.2 billion boe of production, and reserves replacement was 95 percent. Reserves replacement performance remains satisfactory, Shell said, with net reserves attributable to Shell shareholders at end-2008 of 11.9 billion boe, unchanged from year ago levels. End 2008 reserves life stands at 10 years.
Its first-quarter dividend will be increased by 5 percent, and it says it will pay out around US$10 billion in 2009.
Shell said it is taking a prudent approach. Long-term oil and gas fundamentals remain
positive, but the industry is facing a sharp downturn in energy prices at a time when costs are high by historical standards.
Chief executive Jeroen van der Veer said: "The economic slowdown creates opportunities for Shell to reduce supply-chain costs, as spare capacity in the services industry comes into play. We don't have a crystal ball on oil prices, so we are planning on the basis that the downturn could last more than a year" Van der Veer said.
Organic reserves additions including oil sands for 2008 were 1.1 billion boe, compared to 1.2 billion boe of production, and reserves replacement was 95 percent. Reserves replacement performance remains satisfactory, Shell said, with net reserves attributable to Shell shareholders at end-2008 of 11.9 billion boe, unchanged from year ago levels. End 2008 reserves life stands at 10 years.
Its first-quarter dividend will be increased by 5 percent, and it says it will pay out around US$10 billion in 2009.
Shell said it is taking a prudent approach. Long-term oil and gas fundamentals remain
positive, but the industry is facing a sharp downturn in energy prices at a time when costs are high by historical standards.
Chief executive Jeroen van der Veer said: "The economic slowdown creates opportunities for Shell to reduce supply-chain costs, as spare capacity in the services industry comes into play. We don't have a crystal ball on oil prices, so we are planning on the basis that the downturn could last more than a year" Van der Veer said.
