Shell Is Planning to Secede From Gas Program in Qatar
Posted: 07/18/2014 10:07:32 Edited: 07/18/2014 11:07:11 Clicks: 4823
An insider claims that Royal Dutch Shell PLC short for Shell is planning to secede from a gas program in Qatar which may bruise the efforts that Qatar increases its own proven oil and gas reserves.
In 2010, Shell signed exploration and production sharing contract with Qatar Petroleum and CNPC (China National Petroleum Corp). The exploration was carried out at Pre-Khuff of North Field, a giant offshore gas field in Qatar. According to the contract, Shell will hold 75% of stock rights and explore two gas wells in the next five years before May 2015.
Shell drilled a dry well in D Block last year while Qatar advocated recklessly that D Block was the most promising block before that. That made Shell which even planned to explore the second gas well fell discouraged.
A Qatar officials who is familiar with situations shows that Shell has already shown clearly that the second gas well cannot go into commercial production and they hope that they can secede the block no later than the next year.
The official says that Shell hope they can secede without exploring the second gas well as contract. Currently, Shell is negotiating the matter with Qatar Petroleum. But Qatar Petroleum is worried about the losses which may be caused by quit of Shell.
Other petroleum corporations have already signed contract to explore gas at the stratum, including CNOOC, JX Nippon & Energy Corp. and GDF Suez.
Another Qatar officials claims that other operators may follow Shell to strive for terminating contracts with Qatar Petroleum or slowing down exploration.
In 2010, Shell signed exploration and production sharing contract with Qatar Petroleum and CNPC (China National Petroleum Corp). The exploration was carried out at Pre-Khuff of North Field, a giant offshore gas field in Qatar. According to the contract, Shell will hold 75% of stock rights and explore two gas wells in the next five years before May 2015.
Shell drilled a dry well in D Block last year while Qatar advocated recklessly that D Block was the most promising block before that. That made Shell which even planned to explore the second gas well fell discouraged.
A Qatar officials who is familiar with situations shows that Shell has already shown clearly that the second gas well cannot go into commercial production and they hope that they can secede the block no later than the next year.
The official says that Shell hope they can secede without exploring the second gas well as contract. Currently, Shell is negotiating the matter with Qatar Petroleum. But Qatar Petroleum is worried about the losses which may be caused by quit of Shell.
Other petroleum corporations have already signed contract to explore gas at the stratum, including CNOOC, JX Nippon & Energy Corp. and GDF Suez.
Another Qatar officials claims that other operators may follow Shell to strive for terminating contracts with Qatar Petroleum or slowing down exploration.
