Shell M'sia to transform upstream division
Published on: Thursday, October 01, 2015
Kuala Lumpur: Shell Malaysia will transform its upstream division by reducing about 1,300 positions over the next two years.The transformation programme which was unveiled Wednesday would focus on improving efficiency and removing complexity to make the company more agile and competitive, it said in a statement."We are strengthening our organisation by prioritising productivity and efficiency, without compromising on safety and reliability. We will emerge from this process a more nimble, resilient and competitive player in the Malaysian oil and gas industry," said its Chairman Iain Lo.ADVERTISEMENT
Shell with a total workforce of about 6,500 staff, has a long history in Malaysia, marking its 125th anniversary in the country next year.Lo said Shell was proud of its contributions to the oil and gas industry in Malaysia and looked forward to continue a long and fruitful partnership with Petronas. According to him, Shell remained confident of its future in Malaysia.The company is also a leading explorer in the country, having invested an average of US$100 million per year over the last six years and made 11 discoveries in the past 24 months. ADVERTISEMENT
For Lo, Shell Malaysia is preparing itself to be more competitive in a low oil price environment."Continuing business as usual is not sustainable. We are taking difficult, but necessary action," he added.
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Meanwhile, oil prices retreated in Asia Wednesday as traders focus on US crude stockpile report, a day after growing concerns over China's economy sparked a massive sell-off in shares of commodity firms.As Asian stocks recovered from Tuesday's rout, oil prices remain under pressure because demand growth continues to fall behind crude supply, analysts said.US benchmark West Texas Intermediate (WTI) for November delivery fell 44 cents to $44.79 and Brent crude dropped 36 cents to $47.87 a barrel in late-morning trade.Both contracts closed higher on Tuesday after sinking on Monday along with equities following dismal industrial data that reignited doubts about China's commodity-hungry economy."At the end of the day, the fundamentals of supply and demand remain intact," said Daniel Ang, an investment analyst with Phillip Futures in Singapore.He said traders are training their sights on a report to be released later Wednesday on US commercial crude stockpiles for the week ending Sept 25. The report is a closely watched gauge for demand in the world's top oil consuming nation.Analysts expect the report to show lower stockpiles, in part due to an anticipated drop in US crude production and low utilisation rates by US refineries.Traders are also worried about the Chinese economic slowdown because of its impact on demand for raw resources, including oil."Myriad high frequency indicators continue to point towards a slowdown in the Chinese economy," said Andrew Wood, head of Asia country risk research at BMI Research, a member of the Fitch Group.These indicators include "deepening producer price inflation, weak energy consumption growth, contracting manufacturing activity, and a contraction in monthly rail freight volume," he wrote in a market commentary.Stay up-to-date by following Daily Express’s Telegram channel.
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