The company said in a statement to the media that it has decided to pull out from the joint development of gas reservoirs with Abu Dhabi National Oil Co (ADNOC), “following a careful and thorough evaluation of technical challenges and costs”.
Meanwhile, the UAE’s energy minister said the country was not worried about the Anglo-Dutch firm’s exit from the project.
“We are not worried about [the] supply of gas. We are planning well. If the company is pulling out, I’m not worried,” said Suhail Al Mazroui, the UAE’s Minister of Energy, on the sidelines of the World Future Energy Summit in the capital.
Shell won in 2013 a tender – valued at the time at $10 billion – for a 40 per cent stake in a 30-year venture to develop the complex sour gas field, involving the treatment of potentially deadly gases, Reuters said in a report.
Apparently referring to the continuing freefall of oil prices, Shell said it decided stop further joint work on the project, as it no longer fits the company’s strategy, “particularly in the economic climate prevailing in the energy industry”
“The reason most probably will be [a] commercial reason because now the cost of gas and the price of gas and LNG have dropped more than 50 percent,” Al Mazroui said.