Gas pro­duc­tion cap ap­peal

The Star Early Edition - - INTERNATIONAL -

A JOINT ven­ture be­tween Royal Dutch Shell and Exxon Mo­bil said yes­ter­day it would ap­peal against a Dutch govern­ment plan to lower a pro­duc­tion cap at the Gronin­gen nat­u­ral gas field by a fur­ther 10 per­cent. The Dutch govern­ment has low­ered pro­duc­tion sev­eral times over the past three years owing to small earth­quakes trig­gered by work there. The lat­est cap, an­nounced in May, would lower pro­duc­tion to 21.6 bil­lion cu­bic me­tres (bcm) per year from Oc­to­ber. It was 53.9 bcm in 2013. The 50-50 ExxonShell joint ven­ture, known as NAM, said it had been left in an im­pos­si­ble po­si­tion by be­ing told it could con­tinue pro­duc­tion – vi­tal to sup­ply homes with gas – but with­out guar­an­tees that it is meet­ing safety stan­dards. A part of the govern­ment’s May pro­duc­tion de­ci­sion was cited as trou­bling.

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