Exploration is vital for oil and gas companies in order to replenish depleting reserves and discover new resources that, if developed, can be highly profitable. Shell in recent years made significant discoveries in Namibia, which it is now studying for potential development. A Shell spokesman would not comment on the reduction figures. "Shell aims to create more value with less emissions by focusing on performance, discipline and simplification across the business. That includes delivering structural operating cost reductions of $2bn-$3bn by the end of 2025," Shell said in a statement. Shell shares were up 0.6% at 3.55pm GMT. Sawan, who took office in January 2023, has vowed to improve Shell's performance to boost profitability and narrow a wide gap in its shares valuation compared with larger US rivals. As part of the strategy, Shell plans to grow its liquefied natural gas division, steady oil production and focus on its most profitable businesses.