Shell intends to invest hundreds of millions a year into North Sea

Energy: Oil boss speaks at Offshore Europe conference

Shell’s chief executive Ben van Beurden said the North Sea must “earn its right to grow” as he spoke at the opening morning Offshore Europe conference in Aberdeen yesterday.

He was addressing thousands of attendees at the conference, which runs for four days at Aberdeen Exhibition and Conference Centre.

Mr van Beurden said: “Yes, the North Sea has a fine and proud history.

“Yes, the people here have shown time and again their ability to innovate, change and improve.

“And yes, there have been great efforts to advance the UK investment climate and to provide stable foundations for that investment. “But the work is not done. “The basin still needs to earn its right to grow.

“It is competing internationally for investment from across the industry.

“It can, and must, be attractive for that investment on an international basis.”

Mr van Beurden said his company was not abandoning its position in the region and said there were plans to invest heavily into the North Sea in the “coming years”.

“Shell has clearly stated its intention to be a world-class investment case and the North Sea is part of the drive to achieve that goal,” he continued.

“That is why the company intends to invest hundreds of millions of dollars a year in the area over the coming years.

“Yes, we are divesting some of our assets and that will generate short-term cash but it will also focus Shell’s UK portfolio and ensure it brings in serious returns over the long term.”

He noted that Shell has a supply chain worth £3.4 billion a year in the UK and that one in 10 graduates hired by Shell studied at a UK university.

He said the Shell-operated Brent field had produced around 10% of the UK’s oil and gas and contributed around £20bn in tax revenue in today’s money.

Shell’s chief executive Ben van Beurden.