Shell withdraw from one of the largest gas projects because of the collapse of oil prices

by Catfish1927 Tue Jan 19, 2016 1:36 pm

Major energy companies continues its withdrawal from the oil projects after the great collapse of oil prices in global markets during the year ended, come these withdrawals due to high production costs in front of rates, where Royal Dutch Shell oil company announced its withdrawal from a large natural gas project in Abu Dhabi because of the collapse of energy prices Global.

The company said in a statement it had decided to withdraw from the development of Bab field of higher gas sulfur project, which was to be implemented with the government Abu Dhabi National Oil Company, due to lower oil prices.

The company said that "after careful assessment of the challenges and technical costs, decided to Shell to withdraw from the The joint venture for the development of Bab field of higher gas sulfur because of the deterioration of oil prices.

"The company added that it concluded after the assessment that" the development of the project does not fit with the company's strategy in the prevailing in the energy sector economic circumstances.

"In the face of the collapse of oil prices is witnessing the energy sector canceled or postponed projects, reduce costs and lay off thousands of employees.

It contains higher natural gas sulfur usually large amounts of hydrogen sulfide, which must be removed in order to burn fuel, and this process increases the cost.

It comes Shell to withdraw from the project decision after its decision last year to withdraw from the exploration operations in Alaska after that failed to find commercial quantities of oil. The company also postponed Carmon Creek Project sand oil in Canada in October.

The government Abu Dhabi National Oil company Shell has chosen a partner in the door of a field project in 2013, and awarded the company their share to 40% from the field, which lies 150 kilometers southwest of Abu Dhabi city. The project is scheduled to begin selling gas in 2020.

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