Shell could pull out of New Zealand after over 100 years as oil prices plunge
Royal Dutch Shell is reviewing its business interests in New Zealand, where it has operated for more than 100 years, as it looks to cut costs amid persistently low oil prices.
Low oil prices have squeezed oil companies' balance sheets forcing them to review and cut back operations. Brent crude oil, the global benchmark, fell below $40 per barrel for the first time since 2009 this week, as concerns over a supply glut deepened.
"The Shell business in New Zealand is a great, but small part of the global Shell business and hence the decision to undertake a strategic review at this time," Rob Jager, country chairman of Shell New Zealand, said in a statement.
Read more: Shell posts dramatic loss as falling oil prices take toll
Shell's assets in New Zealand include stakes in the Maui, Kapuni and Pohokura fields in Taranaki and a deepwater exploration licence in the Great South Basin.
Shell, which reported a huge loss of $8bn (£6.6bn) in the third quarter, wants to cut costs by $11bn in 2015 to stay afloat in a low oil price environment.