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Shell becomes No. 2 world's oil producer

Shell becomes No. 2 world's oil producer

Oil market

London-listed Royal Dutch, Shell has overtaken California based Chevron to become the world’s second biggest non-state owned oil company.

This is coming ahead of the company’s complete acquisition of BG Group which pushed its value to £133 billion in excess of Chevron £122 billion market capitalisation.

Shell acquisition of BG Group by the Anglo dutch company was completed on February 15 having been debated in April 2015.

The deal is the biggest in the sector in the last ten years despite the backdrop of falling oil prices.

Shell tabled its bid in April last year at the time the price of bent crude oil had fallen to 42 percent.

However, the deal gives Shell access to BG’s liquid natural gas reserves and was seen by many as more of reason for the deal to go ahead.

BG’s share came into the fore in the 1980s..

With the deal, the company has also overtaken HSBC to become the biggest Financial Times Stock Exchange (FTSE) 100 listed company.

Shell in 2011, sold its downstream businesses in 21 African countries, in line with its strategy to cut its retail operations by 35 per cent.

The oil company suspended drilling operations off the coast of west Africa last year and has ultimately delayed decision on whether or not to invest in an oil drilling operation off the coast of Nigeria.

Shell’s fortunes are closesly watched by many UK investors.

ExxonMobil remains the world’s most valuable oil company with market value of £337 billion, almost twice the size of Shell.