UPDATE 1-Shell accelerates shareholder returns after oil price boost

* Shell to boost returns to 20%-30% of free cashflow

* Energy firm to "retire" $65 bln net debt target
(Adds detail throughout)

By Ron Bousso

LONDON, July 7 (Reuters) - Royal Dutch Shell on
Wednesday said it would boost its planned shareholder returns
beginning in the second quarter after a sharp rise in oil and
gas prices helped it reduce debt.

In a trading statement ahead of its quarterly results, the
Anglo-Dutch company said it would increase distribution to
shareholders in the form of share buybacks or dividends in the
range of 20% to 30% of cash flow from operations, it said.

The move, which comes earlier than many analysts had
expected, was due to "strong operational and financial delivery,
combined with an improved macroeconomic outlook."

Shell previously said it would boost returns once its net
debt dropped below $65 billion. The company said on Wednesday it
would "retire" the target without specifying whether it had hit
it.

"In the second quarter, Shell expects to have further
reduced its net debt, although the extent of the reduction will
be moderated by working capital movements," it said.

Analysts had largely expected Shell to increase distribution
towards the end of the year, but a strong rise in oil and
natural gas prices in recent months accelerated the timetable.

Shell said it would stick to its spending plans that would
remain below $22 billion in 2021.

(Reporting by Ron Bousso; Editing by Louise Heavens and Edmund
Blair)