Shell to increase European E&P spending

Shell Exploration and Production International BV will increase its exploration and production spending in Europe by $150 million to a total of $1.8 billion.

Shell Exploration and Production International BV will increase its exploration and production spending in Europe by $150 million to a total of $1.8 billion, according to Tom Botts, CEO of Shell's European E&P organization. Botts spoke at a panel session at the Offshore Northern Seas conference in Stavanger, Norway, this week.

"Through these investments, Shell will ensure our exploration and production business in European offshore can grow, both from our existing assets and from new projects like Ormen Lange, and enable development of European sources of energy," Botts said. "We are also actively pursuing new opportunities and have already awarded seismic contracts following our successful outcome of the 18th exploration round in Norway."

Botts told the panel that the European offshore industry is in a "healthy middle age," with many opportunities for Shell.

"The strength of Shell's European EP organization is our robust local presence and cross-border connections," he said, "which allow us to maximize existing infrastructure and develop new sources of energy for Europe – such as the Statfjord agreement bringing Norwegian wet gas to the UK, Danish gas via the Tyra pipeline to the Netherlands, and the planned Balgzand-Bacton pipeline between The Netherlands and the UK. Through ventures such as Goldeneye in the UK, continuous investments in the large Groningen gas field and Dutch small fields, and the Ormen Lange development in Norway, we will help sustain Europe's supply of energy."

08/26/04

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