April 26, 2018 / 2:57 PM / 7 months ago

Shell writes off Groningen gas field on Dutch phase-out

FILE PHOTO: A passenger plane flies over a Shell logo at a petrol station in west London, January 29, 2015. REUTERS/Toby Melville/File Photo

LONDON (Reuters) - Royal Dutch Shell (RDSa.L) said on Thursday it would write down its reserves in the Groningen gas field, one of Europe’s largest, following the Dutch government’s decision to phase out production by 2030.

The Anglo-Dutch company holds a 50 percent stake in the field, which has seen production reduced in recent years following a series of damaging earthquakes.

Shell said it expects to write off an estimated 0.5 to 0.65 billion barrels of oil equivalent in 2018.

Shell also took an impairment of $244 million (175 million pounds) in the first quarter as a result of the government’s decision.

Gas company NAM is a joint venture of Shell and Exxon Mobil (XOM.N) that runs the field.

Reporting by Ron Bousso; Editing by Dale Hudson

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