Royal Dutch Shell will shrink the workforce at its oil refinery in Singapore. It will also reduce the crude-processing capacity at the refinery by 50 per cent.
The objective is to reduce the carbon dioxide emissions to net zero over the next three decades. The refinery at Pulau Bukom, which is capable of processing 500,000 barrels of oil a day, is undergoing a major restructuring as part of a cost-cutting exercise by Shell. The Company plans to pay more attention to the renewable energy business and power division, and cut down on the oil and gas business. The focus will shift to new low-carbon value chains.
The Company will look at producing biofuels and specialities, such as bitumen. It will also explore the use of different raw materials and recycled chemicals.
The plan to slash up to 9,000 jobs had been revealed by Shell in September. It will reduce the number of oil refineries and petrochemical sites from 14 to six, as part of this plan.
About 500 of the 1,300-strong workforce at the Singapore refinery will be asked to leave within the next three years, and the Philippines refinery will become an import terminal.
Shell will work on expanding its solar power generation, building electric vehicle charging points, and providing carbon-neutral solutions. It will also work on ways to recycle plastic waste.