Royal Dutch Shell Plc, Europe’s largest oil company, further reduced spending plans for this year and 2016 as it prepares to take over BG Group Plc amid slumping prices for crude.
The combined company plans to spend $33 billion next year, lower than Shell’s previous guidance of $35 billion, the company said Tuesday in a statement. Shell also cut its spending forecast for this year by $1 billion to $29 billion.
Oil’s collapse to less than $37 a barrel from about $55 on the day the deal was announced in April has prompted some investors to question whether Shell is paying too much. The oil producer has justified the deal by saying that it boosts its ability to maintain dividends, makes it the world’s biggest liquefied natural gas company and gives it oil and gas assets from Australia to Brazil.
Brazil Energy Insight 
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