Shell to write down its reserves in the Groningen gas field

Royal Dutch Shell announced recently that it would write down its reserves in the Groningen gas field following the Dutch government’s decision to phase out production by 2030.

The gas field is one of Europe’s largest.

The Anglo-Dutch company holds a 50% stake in the field, which has seen production reduced in recent years following a series of damaging earthquakes.

Shell said it expects to write off an estimated 0.5 to 0.65 billion barrels of oil equivalent in 2018.

Shell also took an impairment of US$244 million in the first quarter as a result of the government’s decision.

Gas company NAM is a joint venture of Shell and Exxon Mobil that runs the field.