Is Shell slashing production on Rosetta, Burullus due to arrears?

shellShell will apparently be halting production of 40 mcf/d of gas from the Rosetta field by July 2017, as the anticipated payout from the field would not be worth the costs from any future developments, a senior official from EGAS tells Al Borsa. As noted last month, outgoing Shell Egypt VP and country chairman Aidan Murphy had hinted that future plans to develop Rosetta and Burullus concessions were possibly tied down to the government’s ability to pay back the arrears.

The EGAS source went on to state that the Shell had reduced its investments in Rosetta and Burullus to USD 158.9 mn this fiscal year, from USD 222 mn in FY15-16.

(Source: Enterprise.press)

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