Shell writes down up to $4.5 billion in oil and gas assets

LONDON: Royal Dutch Shell on Monday it will write down $3.5 to $4.5 billion in the value of oil and gas assets in 2021, the latest in a string of impairments this year as it adjusts to a weaker outlook.

In an update ahead of its fourth-quarter results, the Anglo-Dutch company said it expects oil and gas production in its upstream division to be around 2.275 and 2.350 million barrels of oil equivalent per day, impacted by the closure of platforms in the Gulf of Mexico due to hurricanes as well as mild weather in Northern Europe.

Oil refinery utilisation is expected to be at between 72% and 76% of capacity, reflecting continued weak demand due to the coronavirus pandemic.