Shell cuts back plans to invest
ROYAL Dutch Shell yesterday put on hold the expansion of a major project in Canada because of falling oil prices and the global credit crunch.
It said the second phase of its Athabasca oil sands scheme in Alberta, extracting crude oil from bitumen, would not go ahead as planned in the new year.
But despite the deferral, the company said it remained on track to invest up to $36billion (£22.5billion) in the business this year.
The group reported third-quarter profits up 71 per cent to $10.9billion, buoyed by high prices.
Chief executive Jeroen van der Veer said: “We are watching the world economic situation very closely.
“Our strategy remains to pay competitive and progressive dividends, and to make significant investments in the company for future profitability.
“We are steering the Shell ship through rough waters and, so far, OK.”
Output fell more than 6 per cent, hit by U.S. hurricanes, North Sea maintenance and conflict in Nigeria.
The shares fell 70p to 1635p.