* Shell cuts value of Gulf of Mexico, refining assets
* Total impairments announced in 2020 exceed $22 billion
* GRAPHIC: Big Oil's big write downs https://tmsnrt.rs/3fUjFOj
* GRAPHIC: Shell's fuel sales recover https://tmsnrt.rs/3e8r4ZE
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By Ron Bousso
LONDON, Dec 21 (Reuters) - Royal Dutch Shell on
Monday 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.
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.
CEO Ben van Beurden on Feb. 11 will unveil Shell's long-term
strategy to sharply reduce its greenhouse gas emissions and
expand its low-carbon energy and power businesses.
In its update, the Anglo-Dutch company also said it expects
oil and gas production in its upstream division to be around
2.275 to 2.350 million barrels of oil equivalent per day,
slightly higher than in the third quarter.
Production was impacted by the closure of platforms in the
Gulf of Mexico due to hurricanes as well as mild weather in
Northern Europe.
LNG liquefaction volumes are expected to be between 8 and
8.6 million tonnes.
Oil refinery utilisation is expected to be between 72% and
76% of capacity in the quarter, reflecting continued weak demand
due to the coronavirus pandemic.
(Reporting by Ron Bousso; editing by Louise Heavens and Jason
Neely)