By Jonathan Davies

Royal Dutch Shell has announced 6,500 job cuts are part of cost-cutting plans to "mitigate the impact" of falling oil prices.

The oil giant reported a 35% fall in profits for the three months to 30 June, at $3.4 billion. Shell said it wants to reduce operating costs by $4bn as reduce its oil exploration operations.

The cuts come as Shell says it is "planning for a prolonged downturn" in oil prices.

Brent crude oil has lost more than half of its value since last summer, causing a number of oil companies to cut its workforce and scale back operations.

Shell chief executive Ben van Beurden said: "We have to be resilient in a world where oil prices remain low for some time, whilst keeping an eye on recovery.

"We're taking a prudent approach, pulling on powerful financial levers to manage through this downturn, always making sure we have the capacity to pay attractive dividends for shareholders."