HomeNewsTunisia: Shell buys British Gas Group for $ 70 billion

Tunisia: Shell buys British Gas Group for $ 70 billion

Multinational company Royal Dutch Shell said it had bought the British Gas Group for 47 billion pounds, or $ 70 billion.

The British group, which recorded losses of 3.35 billion pounds in the last quarter of 2014, was quick to issue a statement to that effect Wednesday morning after it said the day before it was in advanced “discussions” on the purchase.

This comes as the oil industry is trying to become more efficient and reduce costs, and that the oil prices continue to fall.

Ben van Beurden, chief executive of Shell, said: “Bold, strategic moves shape our industry. BG and Shell are a great fit. This transaction fits with our strategy and our read on the industry landscape around us.” He added: “BG has always been on the top of [our] list.”

Shell said the deal would create pre-tax cost savings of about $2.5bn a year. It will add some 25% to the company’s proved oil and gas reserves and 20% to production, as well as strengthening its position in new oil and gas projects, particularly in Australia LNG and Brazil deep water.

BG and Shell both have huge interests in the LNG market – liquefied natural gas that can be shipped around the world in tankers.

It should be noted that the British Gas Group operates in Tunisia since 1989 through its subsidiary British Gas Tunisia (BGT), which is the largest producer of gas with 60% of local production for domestic use.

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