Shell set to axe 2,500 jobs

Oil giant Shell has announced that up to 15% of its global exploration and production workforce will be axed by 2006.

In a presentation to analysts, Shell said the job cuts were part of a reorganisation of its upstream business - which involves discovery, drilling and production of oil and natural gas products.

Shell was updating analysts with further details of its restructuring plan announced in February, designed to consolidate separate worldwide business units into five regional centres.

The location of the job cuts is still to be determined, a spokesman for the company said today.

Cutting 15% of the workforce would be the equivalent of 2,500 jobs at Shell's exploration and production division which employs 17,000 people worldwide.

Just days ago the company announced 350 job losses at its North Sea operations.

The group is looking to deliver pre-tax profit improvements of between 500 million US dollars (£318 million) and 800 million US dollars (£508 million) over the next four years by the global reorganisation of its exploration and production operations.

Shell's presentation also outlined the exploration strategy which is targeted at finding and maturing new hydrocarbon reserves and the development of plans for the main gas markets of Europe, North America and Asia.

Along with sector rivals such as BP, Shell is focused on saving money after missing targets for higher oil and gas production.

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