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‘We are committed to Qatar’ – Shell

18th July 2014

Royal Dutch Shell has played down reports questioning its commitment to Qatari projects after an official expressed doubt this week over the supermajor’s long-term involvement in the nation’s Block D gas exploration and production project

‘We are committed to Qatar’ – Shell
The company remains massively involved in downstream projects within the Gulf state

“We remain in dialogue with our venture partner and Qatar Petroleum (QP) on future plans,” a Shell spokesperson told OGT. “We are committed to Qatar and our longstanding partner Qatar Petroleum in positively contributing to the country’s oil and gas sector.”

Shell’s commitment to its Block D joint venture development with QP and CNPC was thrown into doubt yesterday when a Qatari official suggested that the Anglo-Dutch player would soon be leaving the project.

"Shell's talks with QP at the moment are over how to get out without drilling the second commitment well and QP is concerned about the damage Shell's exit could cause," the Qatari official told the Wall Street Journal.

Doubts over the supermajor’s involvement have steadily grown since the first of two planned wells found no commercial reserves in its Pre-Khuff play. The second well has yet to be drilled.

“The QSD-1 exploration well (75 per cent Shell, 25 per cent PetroChina) reached total depth as planned; however, it did not encounter commercial volumes of hydrocarbons. The well operation was completed without any safety or environmental incidents,” the Shell spokesperson confirmed.

The joint venture contract was first signed in 2010 and is due to expire next March.

The company is massively involved in downstream projects within the Gulf state, most notable the USD 20bn LNG plant in Ras Laffan and the huge Pearl gas-to-liquids plant.

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