Royal Dutch Shell plans to reduce the cost of oil and gas production by up to 40% in an effort to save cash and focus more on renewable energy.

According to Arabianet, Shell's plan, known internally as Project Re-Ship, is expected to affect three main sections, and the current cost reductions will be added to the $ 4 billion cuts it approved in Corona crisis aftermath.

The plan, which is expected to be implemented before the end of this year, includes cuts in operating costs and capital spending on new projects as well as focusing oil and gas production on a few key areas of Among them are the Gulf of Mexico, Nigeria and the North Sea.

Royal Dutch Shell avoided incurring its first quarterly loss in recent history, supported by booming trading activities, but it announced a $ 17 billion impairment provision fee of $ 17 billion. Reflects pessimistic forecasts for oil and gas prices.

and Shell had warned last month that it was about to reduce the value of its oil and gas assets, by up to $ 22 billion, at a time when the Corona virus crisis wiped out demand On oil.

"Shell has achieved robust cash flow in a remarkably challenging environment," said Ben Van Bjorden, CEO, in a statement on Thursday.

However, the Anglo-Dutch company warned of the continuing impact of the pandemic on oil and gas prices and sales in the third quarter.

Shell and its peers have crossed declines in the past thanks to large refining operations, whose profit margins are supported by low crude prices and strong fuel demand.

But in the current crisis, low oil and gas prices have accompanied an unprecedented decline in global demand.

Shell responded by cutting its cash dividends for the first time since World War II and cutting planned spending by $ 5 billion to a maximum of $ 20 billion this year.

recorded fees for impairment provisions of $ 16.8 billion in the quarter after it reduced its forecast for oil and gas prices in the short term in the wake of the pandemic. The fees are at the minimum of its previous indicative expectations.

Shell's adjusted profit declined in the second quarter, which excludes special items and is adjusted in light of ...