Oil giant Shell is considering a possible $40bn spin-off of non-core assets via a stock exchange listing, according to Britain’s Sunday Telegraph newspaper.

The paper says chief financial officer Simon Henry told analysts last week that a float of Shell’s non-core assets is ‘very much on the agenda’.

Shell said in March it plans to sell off $30bn in assets over the next three years to protect its dividend, following its takeover of gas giant BG. Shell has been steadily increasing its investments in gas, which now accounts for more of its turnover than oil, according to Dutch broadcaster NOS.

An IPO of the company’s mature assets, which has been dubbed ‘Baby Shell’, would let Shell benefit from a sustained oil price recovery, the Telegraaf said.