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Further production cut eyed for Groningen after tremor

Published 01/10/2018, 12:55 PM
© Reuters.  Further production cut eyed for Groningen after tremor
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  • Dutch gas company NAM says it will propose reducing production at the Groningen gas field following an earthquake on Monday that was the largest in recent years.
  • NAM, a Royal Dutch Shell (LON:RDSa) (RDS.A, RDS.B) and Exxon Mobil (NYSE:XOM) joint venture that operates the Groningen field, says it will propose a shutdown of some production clusters, leading to a lower production volume overall.
  • The Dutch government has cut gas production several times in recent years from 39.4B cm in 2015-16, as decades of gas extraction have led to dozens of earthquakes every year in the Groningen region; the new government already agreed to cut output to ~20B cm by 2021 from a current 21.6B cm.
  • Now read: Exxon Mobil, Hess And Nexen: A South American Beauty Called Liza


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