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Shell, XOM to seek arbitration against Netherlands: report

Shell, XOM to seek arbitration against Netherlands: report

May 29, 2020

Shell and ExxonMobil will file an arbitration claim against the Netherlands government over compensation for the early closure of gas field, according to Global Arbitration Review (GAR).

The companies operate the Groningen gas field through NAM — a 50-50 Dutch joint venture. Production from the onshore gas field causes earthquakes affecting local communities, which has prompted the government to shut it down early.

NAM is working with the Dutch government and other stakeholders to fulfill its obligations to residents of the area, which include compensation for damage caused by the earthquakes.

But it’s unclear whether NAM or the partners, separately, will seek compensation from the government for the gas resources left on the ground. Kallanish Energy could not reach the parties for comments.

“Negotiations with the state are ongoing to determine how the accelerated close-down should be managed,” Shell said in March.


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