Shell Petroleum has revealed plans to invest an average of $30 billion of cash capital expenditure, (capex) per year over 2021-2025, including a minor acquisition spend of up to $1 billion, with a ceiling of $32 billion a year to sustain deepwater production.
The company also plans to maintain production levels from its conventional oil and gas operations at around 1.5 million barrels a day, b/d of oil equivalent over the coming five years, with a modest increase from 2025 to 2030, the company said in a strategy update.
The company plans to sustain deepwater production above 900,000 barrels of oil equivalent, boe/d through 2025, a level likely to hold to 2030.
CEO Ben van Beurden said at a strategy presentation in London; “We will continue our focus on fully sustaining our upstream business well into the coming decades because for as long as there is sustained demand for oil and gas, there will be sustained commitments from Shell and that means also sustained investments.
“We do believe that we have what it takes to deliver the sustainability in upstream and integrated gas well through the 2030s”.
Shell said it was targeting average forward-looking breakeven prices of around $30/b in its upstream businesses after asset “high-grading” has doubled its portfolio of sub-$40/b breakeven projects since 2016.
Overall, Shell said it planned to invest $11 billion-13 billion per year on its core upstream portfolio, including shale and deepwater, compared with a target of $12 billion-$15 billion in 2020.