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Shell says still happy to invest in oil at $50/bbl

Reuters UK

Thu Nov 13, 2008 11:40am GMT

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ISTANBUL, Nov 13 (Reuters) – Royal Dutch Shell (RDSa.L: QuoteProfile,Research) CEO Jeroen van der Veer said on Thursday investing in oil projects could still be attractive with the price of $50 a barrel if taxes and royalties on oil production are not too high.

Executives and officials of oil producing countries have previously said oil prices of around $80 per barrel were needed to justify investment in new projects.

Veer told reporters in Istanbul the Anglo-Dutch oil giant was “very much interested” in Iraqi oil contracts which he projected would be distributed in 2009 and Shell was in talks with a number of companies about a possible consortium.

Current financial distress will add more complexity to pipeline projects, already complicated by governments and the need for viable throughput.

(Written by Ercan Ersoy, editing by Tom Bergin and Elaine Hardcastle)

 

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