Shell buys BG to challenge ExxonMobil
Shell has offered to acquire BG, to create a company with oil and gas production second only to that of ExxonMobil
The acquisition will add 25% to Shell’s proved oil and gas reserves and 20% to its production, while giving the firm stronger positions in developing areas such as Australian LNG and Brazilian deep-water exploration. BG shareholders will own about 19% of the combined company. Shell says it plans to restructure the enlarged company by selling $30bn of assets over the years 2016-18. But it says capital spending will continue to be trimmed this year and next. Debt will be paid-down in and after 2016, and there will be a $25bn share buy-back programme subsequently. The enlarged Shell will have an oil and gas production of 3.7m barrels of oil equivalent a day (boe/d), based on 2014 production, w
Also in this section
13 March 2026
Brussels is again weighing a cap on gas prices amid the Hormuz crisis, but the measure could backfire by deterring the LNG cargoes Europe urgently needs
12 March 2026
Emergency oil stocks provide a last line of defence to oil market shocks, so the IEA’s unprecedented 400m bl release represents something of a double-edged sword
12 March 2026
LPG could rapidly expand access to clean cooking across Africa and prevent hundreds of thousands of deaths from indoor air pollution each year, but infrastructure shortages and regulatory barriers are slowing investment and market growth
11 March 2026
Missiles over Dubai and disruption in Hormuz are testing the emirate’s reputation—and shaking the energy hub at the centre of the Gulf economy
