Royal Dutch Shell has announced it would postpone the Final Investment Decision (FID) on the $12b Bonga South-West oil project in deep-water Nigeria amid the sustained drop in oil prices. The company informed that its adjusted profit fell by 56% in Q4 of 2015, compared to 2014, while its earnings fell by 80% to $3.84b, compared to $19b in 2014, PunchNg reported.
Shell’s CEO, Ben van Beurden, said that the acquisition of British oil and gas producer, BG Group, expected to be closed in a few weeks, marked a new start. The company is making substantial changes by reorganizing its upstream, reducing costs and capital investment to enable Shell respond to lower oil prices, according to Shell’s CEO. Beurden also revealed that the company had exited the Bab sour gas project in Abu Dhabi (UAE). In addition, the company is postponing final investment decisions on another LNG project in Canada, DailyTrust reported.