Shell, Petronas begin working on Burullus gas field phase 9B

petronas-shellRoyal Dutch Shell and Malaysia’s Petronas have begun working on phase 9B of the Burullus gas field, an unnamed EGAS official tells Al Shorouk. The USD 950 mn project involves drilling eight new wells with a daily capacity of 387 mcf.

BG, since acquired by Shell, had suspended work on phase 9A+ and 9B of the gas field last March after the government rejected paying USD 7 per mmBTU for phase 9B, and eventually reached an agreement with the government to maintain a price cap of USD 5.88 per mmBTU for gas from the phase. Work on the gas field later stalled as the state fell behind on payments to Shell and BG, but Shell ultimately ramped-up exploration and drilling activity on the back of promising data. As reported last week, the government is reportedly gearing up to repay USD 500 mn – 1 bn to IOCs including Shell.

(Source: Enterprise.press)

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s