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Shell ‘less concerned’ about Groningen natural gas quota impact than production safety: CFO

London (Platts)–2 Nov 2017 958 am EDT/1358 GMT

Anglo-Dutch major Shell is willing to take a financial hit on production from the giant Groningen gas field in the Netherlands to ensure that output can be achieved safely, company CFO Jessica Uhl said Thursday.

Speaking to reporters after it published its Q3 earnings, Uhl said Shell — which has a 50% stake in Groningen operator NAM — is focusing on safe production from the field.

“We are working with our partners and with the [Dutch] government to ensure we operate safely — that’s the priority,” Uhl said.

“We are less concerned about the financial implications,” she said.

Output from Groningen — which was producing as much as 54 Bcm/year as recently as 2013 — has been limited by the government due to the damage caused to buildings in the region by seismic activity caused by drilling.

As of October 1, the Groningen production quota is 21.6 Bcm per gas year, a reduction from the previous annual quota of 24 Bcm. FULL ARTICLE

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