Shell to close BG head quarters near London by the end of the year

The company is cutting more than 10,000 jobs across the world, with 2,800 of those connected with the BG deal.

The oil company is under intense pressure to rein in costs as a slump in oil prices has hit its profits (Getty)

Royal Dutch Shell will close the head office of BG Group, the gas producer it agreed to acquire for $50 billion in February, by the end of the year, it said on Monday, as part of a plan to save costs and cut 10,300 jobs worldwide.

The oil major will also offer voluntary redundancy packages to staff at the BG headquarters in Reading, near London, and to Shell staff in the UK.

This follows a similar announcement made to Dutch staff earlier this month.

The oil company is under intense pressure to rein in costs as a slump in oil prices has hit its profits.

Shell also said on Monday it would close BG's Aberdeen office to focus onshore operations in the Scottish city at its own site. Shell will also close its Brabazon House office in Manchester by the end of 2017, it said.

The site closures and voluntary redundancy offers are subject to consultation with staff, Shell said.

As part of the 10,300 job cuts it has already announced, 2,800 will come from the integration of BG and 7,500 from its existing staff and direct contractor base.