Energy Minister: Shell job cuts won’t affect Trinidad and Tobago

MINISTER OF ENERGY Stuart Young said major job cuts in Shell’s global oil and gas operations would not affect Shell TT and its workers.

He was responding on September 1 to international news reports that Shell planned to cut hundreds of jobs in an attempt to cut up to US$3 billion in costs by the end of next year.

But Young assured the cuts would not reach TT when responding to questions from Newsday.

“This particular exercise that you have identified will not affect their investments and work programmes, especially in exploration and production in TT.”

The job cuts were first reported by Reuters, which said offices in Houston and the Hague were expected to feel the brunt of the cuts.

In a UK Guardian report, Shell officials said it aimed to create more value for stakeholders by focusing on performance, discipline and simplification across the business. They said the company's plans would require a leaner overall organisation.

Despite the cuts, Shell intends to expand its gas productions despite warnings from climate experts that the new oil and gas projects were not compatible with goals to combat climate change.

Parts of those expansion plans may involve TT’s Dragon gas deal, for which the minister said negotiations were continuing.

In October 2023, the Office of Foreign Assets Control (OFAC) of the US Department of the Treasury gave TT a licence which authorised the Government along with the National Gas Company of TT (NGC) and Shell PLC and its affiliates to conduct business with the Government of Venezuela and Petroleos de Venezuela (PDVSA) with respect to the Dragon gas field in Venezuela.

The licence will be valid until October 31, 2025.

Shell has confirmed plans to cut hundreds of jobs from its low-carbon solutions division as part of its campaign to cut costs.

Since Shell’s CEO Wael Sawan took over from Ben van Beurden in January 2023, he has abandoned plans to cut oil production and instituted the cost-cutting programme to increase profits.

Last year, Shell’s market value increased by 13 per cent, to $170 billion.