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Shell, Exxon to appeal latest Groningen gas production cap

Shell, Exxon to appeal latest Groningen gas production cap

AMSTERDAM, June 28 (Reuters) – A joint venture between Royal Dutch Shell and Exxon Mobil said on Wednesday it will file an appeal against a Dutch government plan to lower a production cap at the Groningen natural gas field by a further 10 percent.

The 50-50 Exxon-Shell joint venture, known as NAM, said it has been left in an impossible position by being told it may continue production — vital to supply homes with gas — without guarantees it is meeting safety standards. It also opposes the latest, lowered production cap.

The Dutch government has capped production at Groningen due 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, down from 53.9 bcm in 2013.

NAM’s appeal will be heard starting July 13 at the Council of State, along with appeals by environmentalists who think the latest cap did not go far enough.

(Reporting by Toby Sterling; editing by Jason Neely)


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