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Shell PLC on Wednesday said it will keep crude oil production steady until 2030 instead of a previously planned cut of 1% to 2% per year until the end of the current decade.
The company said it will stabilise liquids production to 2030, with Chief Executive Officer Wael Sawan, who started his role at the start of 2023, scrapping the plan of his predecessor Ben van Beurden.
Meanwhile, the London-based oil major announced a planned $5 billion share buyback amid a plan to reduce operating costs and spending.
The London-based oil major said it plans to buy back shares for at least $5 billion in the second half of 2023, subject to board approval. This is 25% larger than the ongoing $4 billion share buyback programme that Shell had announced when it released its 2022 results in February. That programme will be completed before Shell releases its half-year results on July 27.
Further, Shell aims to reduce capital spending to between $22 billion and $25 billion per year for 2025, compared to $22.60 billion in 2022. Cash capital spending was $24.83 billion.
Annual operating costs are set to be reduced by $2billion to $3 billion by the end of 2025. In 2022, operating costs had widened 9.8% annually to $39.48 billion from $35.96 billion.
Meanwhile, Shell plans to reduce emissions from its operations by 2050 and invest $10 billion to $15 billion until 2025 to support the developing of biofuels, hydrogen, electric vehicle charging and carbon storage and capture.
Shell shares were 0.6% higher at 2,309.50 pence each in London on Wednesday morning.
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