Royal Dutch Shell will buy back over $30bn (£17.7bn) of shares and dividends.
The Anglo-Dutch oil company made the promise after it was announced that it had doubled second quarter profits.
Shell’s $5.1bn second quarter earnings, as measured on a current cost of supplies basis, beat analysts’ expectations and marked a 33 per cent increase from the $2.39bn earnings recorded a year ago.
New chief executive Ben van Beurden, who was appointed to the role in January, said that while the company's quarterly earnings have improved, there is still room for improvement.
He said: "Our financial performance for the second quarter of 2014 was more robust than year-ago levels.
"But I want to see stronger, more competitive results right across the company, particularly in Oil Products and North America resources plays.
“We are taking firm action to improve Shell’s capital efficiency by selling selected assets and making tougher project decisions.”
Shares of Shell have risen by three per cent in early trading this morning.