Shell to halve processing capacity and cut jobs at Singapore oil refinery

Oil major Royal Dutch Shell has reportedly announced plans to reduce the crude processing capacity, as well as cut jobs, at its Pulau Bukom oil refinery in Singapore.

The latest move comes as part of an overhaul to reduce the company’s carbon emissions, Reuters reported.

It brings the total ‘refining capacity cuts’ by the oil major in recent months to 571kbpd, or more than one-fifth of its capacity across the world.

Shell aims to reduce its number of refineries as part of a move to cut greenhouse gas (GHG) emissions to net-zero by the year 2050.

The company plans to restructure its operations by reducing its oil and gas (O&G) business and also plans to expand its renewable energy division.

As part of the restructuring plans, Shell is cutting the number of petrochemical and oil refining sites it will keep operating to six from 14.

Earlier this month, Shell reportedly announced the closing of its refinery in Convent, Louisiana, US. This refinery is the largest of its kind in the US and first on the Gulf Coast to shut down as the Covid-19 pandemic takes a toll on worldwide demand.

In its quarterly earnings call last week, Shell told investors that it expects to sell six refineries and chemical plants globally.

The company also revealed plans to close facilities that it cannot sell.

In September, the company said it plans to cut 7,000 to 9,000 jobs, which account for over 10% of its workforce, by the end of 2022.