Adjustments necessary: Shell

Dateline 2016-05-25, Daily Express:

The current tough oil price environment hit many oil and gas companies hard, including oil giant Shell Holdings Bhd, forcing them to find new balance in order to sustain its business in the State and elsewhere.

Sabah Shell Malaysia General Manager Ian Lim said due to the low price of Brent crude oil, the entire industry had had to make adjustments including deferring or stopping projects and restructuring to achieve lower costs.

“Indeed, like many, Shell is preparing for a lower for longer scenario. Here in Sabah, our challenges are, firstly, we are operating mature assets with increasing unit operating costs in an operating low oil price environment.

“Secondly, our deep water assets are prolific but they are also complex and have challenging operating environments due to the much deeper water depths,” he said during his keynote address at the 5th Sabah Oil and Gas Conference and Exhibition here.

Nevertheless, Lim said, Shell is committed to staying in business for the long term in the State and this will require a new balance that focuses on growing its deep water business, being more competitive and efficient and nurturing local talents.


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