Shares in Royal Dutch Shell rose on Tuesday morning after it announced the tie-up with BG Group would produce higher synergies than previously thought.
The Anglo-Dutch oil and gas supermajor said the deal is likely to achieve $4.5 billion in pre-tax savings in 2018.
Shell have been left with a $70 billion debt pile after the BG merger and management are keen to start reducing this as soon as possible.
“By capping our capital spending in the period to 2020, investing in compelling projects, driving down costs and selling noncore positions, we can reshape Shell into a more focused and more resilient company,” said Shell CEO Ben van Beurden.
Royal Dutch Shell B (LON:RDSB) traded 2.5% higher at 1755p at 10:34 in London trade.
