“This is an important transaction for Shell, accelerating the delivery of our strategy for shareholders. The result will be a more competitive, stronger company for both sets of shareholders in today's volatile oil price world,” Chairman of Shell Jorma Ollila said, commenting on the purchase.
BG shareholders will own about 19 percent of Shell following the merger, according to the announcement.
Shell expects the transaction to accelerate growth for projects including Australian liquefied natural gas and Brazil deep water extraction.
Shell’s proved oil and gas reserves will expand by 25 percent following the restructuring and company production is projected to rise 20 percent compared with 2014, the statement read.
Royal Dutch Shell is an Anglo-Dutch multinational oil and gas company, the fourth by revenue in the world as of 2014.
BG Group is a British-based company, the third biggest oil and gas producer in the United Kingdom.
