KUALA LUMPUR (Jan 20): Anglo-Dutch supermajor Shell, which has had an almost 130-year presence in Malaysia, is looking to reduce by 250 to 300 its upstream workforce in the country, according to energy portal Upstream Online.

In a report Jan 18, the portal said the expected job losses come after a reported cut from the oil giant to its upstream team in the UK, with hundreds of workers to go there.

Upstream quoted Shell Malaysia chairman Iain Lo as saying: “This is difficult news for the impacted staff and these are never easy decisions.”

"However, change is a necessary one to ensure that Shell in Malaysia remains competitive, stays resilient in challenging times and is in a strong position to capture opportunities in the energy transition,” he said.

Upstream reported that Shell said it is "committed to proactively engaging staff throughout the process and ensuring fair treatment in accordance with our values and with Malaysia’s employment laws and regulations".

While Shell Malaysia will see growth in some areas of its business across Malaysia, the exploration and production headcount will fall by as many as 300.

Overall around 2% of the company’s national workforce will be shed progressively over two years, according to the report.

Upstream said Shell Malaysia will be implementing changes to ensure that the company thrives through the energy transition and becomes a more streamlined organisation.

It cited Lo as saying that Malaysia is a very important country for the Shell group.

“Upstream exploration and production continue to be a critical business for Shell and the upstream business in Malaysia has been identified as one of Shell’s nine core performance units worldwide.

“The organisational changes that we are embarking on are crucial for the business to reduce complexity, drive stronger and end-to-end connectedness to make it easier for assets and ventures to focus on delivery,” said Lo.

The report added that Shell Malaysia confirmed that in line with its drive for increased efficiency and collaboration, most of the group's upstream staff would relocate to the principal office in Miri, Sarawak.