Energy companies Royal Dutch Shell Plc (NYSE: RDS.A) and Exxon Mobil Corp. (NYSE: XOM) will not submit a claim for missed revenue due to the Dutch government's decision to halt gas production at the Groningen Field by 2030, the Dutch ministry of economic affairs said on June 25.
"A lot of gas will be left in the ground," Economy minister Eric Wiebes said at the presentation of his deal with the oil majors responsible for extracting Groningen gas.
"That gas is the property of the oil companies, but they will not submit a claim and the government is not required to compensate them."
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This will leave around 450 Bcm of gas in the ground, Wiebes said, with an estimated value of approximately $81.5 billion.
The decision to halt Groningen production forced the government to broker a new deal with Shell and Exxon Mobil, whose 50-50 joint venture NAM is responsible for the field.
NAM will be required to pump as much gas as the government says is needed in the coming years. In return, it will see its share of the revenue from Groningen rise from 10% to 27%, Wiebes said, starting this year.
As part of the deal, NAM will also contribute a total of 500 million euros to strengthen the economy in the Groningen region.
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