LONDON (Commodity Online): Royal Dutch Shell PLC has estimated that its production would move up by 11% to 3.5 million barrels per day 2012 as compared to 3.15 million barrels of oil per day in 2009.

Outlining the company's strategy from London, Shell Chief Executive Officer, Peter Voser, said that the company is planning to cut cost by divesting 15% of its refining capacity and 35% of its retail markets. However, he did not specify which downstream assets might be sold or when.

Shell should be in a surplus cash flow position in 2012, said Voser.

The company's 2009 earnings were sharply reduced by the recession, which Voser attributed to Shell's high exposure to refining and natural gas.

Shell expects net capital investment to be $25-27 billion/year for 2011-14, with up to $3 billion per year of asset sales, and $25-30 billion/year of organic investment, he said.