RDSA.L Share News (RDSA)

(ShareCast News) - Shell said it was increasing the level of cost cuts from its merger with BG Group to $4.5bn from $3.5bn.In an update, the company said it expected to "achieve and exceed the $3.5bn synergies prospectus commitment earlier than expected, in 2017, when synergies should be $4bn."Our other deal-related financial commitments to shareholders in the form of asset sales, debt reduction, and dividends, followed by share buy-backs, are unchanged, said chief executive Ben van Beurden.Shell also said it expected capital investment for 2016 to be $29bn excluding the purchase price of BG Group.Capital investment will be in the range of $25bn-$30bn each year to 2020, he added with spending driven towards the lower end of the range in the current low oil price environment."Programmes to sustainably reduce operating costs are in place across the company," he said."We expect to reach a run-rate of $40bn of underlying operating costs at the end of 2016, some 20% lower than the 2014 pro-forma level for Shell-plus-BG with potential for further cost reduction."Van Beurden confirmed asset sales are expected to be $30bn for 2016-18."We have earmarked up to 10% of Shell's oil and gas production, including 5 to 10 country exits, for disposal. We expect to make significant progress on the first $6bn-$8bn of this programme in 2016," he said.