Royal Dutch Shell (RDS.A) today announced that it will cut a further 2,200 jobs, taking the total for 2015 to 2016 to 12,500.

The company is attempting to stay competitive in a period of low oil prices. It is also to cut costs after its £35 billion ($51.2 billion) purchase of U.K.'s BG in February of this year.

There will be 475 job losses in the U.K. North Sea.

The Financial Times reports that Shell's vice president for the U.K. and Ireland Paul Goodfellow said, "The integration with BG Group provides an opportunity to accelerate our performance in the 'lower for longer' environment."

He added: "We need to reduce our cost base, improve production efficiency and have an organization that best fits our combined portfolio and business plans."

Shares were up almost 1% in London after the announcement.