Royal Dutch Shell said it will write down the value of oil and gas assets by $3.5 billion to $4.5 billion following a string of impairments this year as it adjusts to a weaker outlook.

In an update ahead of its fourth quarter results on February 4, Shell said the post-tax charge was due in part to impairments on its Appomattox field in the U.S. Gulf of Mexico, the closure of refineries and liquefied natural gas (LNG) contracts.

It said some charges involved in its restructuring would be recognised in 2021. Shell shares were down by around 4% in early trading in London. In October, Shell, the world’s biggest LNG trader, wrote down the value of its LNG portfolio by just under $1 billion, focusing on its flagship Prelude project in Australia.

That followed a $16.8 billion writedown in the second quarter which also included Prelude and a sharp cut in its price outlook.

Source: Reuters