Sunday 03 July 2016 9:27 pm

Shell job losses could be worsened by Brexit vote

Oil giant Royal Dutch Shell has warned over the possibility of further job cuts.

The risk of more job losses is a result of uncertainty caused by the UK’s vote to quit the European Union, City PM understands.

Since last year Shell has slashed 12,500 jobs following the fall in oil prices and its tie-up with rival BG.

At the time of Shell’s initial takeover bid for BG Group last year it had 93,000 employees. Meanwhile, BG Group’s staff numbered around 5,000.

The deal came amid a collapse in oil prices, which fell from over $115 per barrel in the summer of 2014 to as low as $27 in February this year.

The price plummet was triggered by the refusal of oil cartel Opec to cut production, leading to a supply glut in the market.

The oil price has recovered since February, climbing to around the $50 per barrel level in recent months.

Between the oil price peak and Shell’s offer for the company in April 2016 BG’s share price fell by over a third.

Speaking of job losses, Shell chief executive Ben van Beurden said in an interview with the Telegraph: “Much will depend on how the environment will continue to develop.”

The Shell boss also said the company is considering selling out of its mature assets in the North Sea.

Shell has some 65 interests and operates more than 30 platforms in the region.

Last month it was revealed over 120,000 UK oil related jobs are expected to have been lost between 2014 and the end of this year because of the lower oil price.

Employment figures released by industry trade body Oil & Gas UK forecast 40,000 job losses in 2016 alone. Last year, around 84,000 jobs were cut.