Gas production cap appeal
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.