Royal Dutch Shell Plc will slash oil-processing capacity at its largest refinery, resulting in hundreds of job losses over the next three years.

Shell last month singled out the Pulau Bukom manufacturing complex in Singapore as one of six key refining and chemical hubs that would remain core to its business amid a companywide reorganization. Yet the site won’t escape the overhaul, with plans announced Tuesday to cut capacity there by half.

The Anglo-Dutch major, which set out bolder climate goals in April, has said it sees oil-product consumption falling as the world transitions to a cleaner energy mix. The impact of the Covid-19 pandemic has only served to accelerate that shift, with refining capacity far outstripping demand for fuels.

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