Shell, Exxon not to seek compensation for end of Dutch gas field production

The decision to halt Groningen production forced the government to broker a new deal with Shell and Exxon Mobil, whose 50-50 joint venture NAM is responsible for the field. (Reuters)
Updated 25 June 2018
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Shell, Exxon not to seek compensation for end of Dutch gas field production

AMSTERDAM: Energy companies Royal Dutch Shell and Exxon Mobil will not submit a claim for missed revenue due to the Dutch government's decision to halt gas production at the Groningen field by 2030, the Dutch ministry of Economic Affairs said on Monday.
"A lot of gas will be left in the ground," Economy minister Eric Wiebes said at the presentation of his deal with the oil majors responsible for extracting Groningen gas.
"That gas is the property of the oil companies, but they will not submit a claim and the government is not required to compensate them."
The Dutch government in March said it would end gas production at the Groningen field by the end of the next decade, in an effort to stop a string of relatively small, but damaging earthquakes caused by gas extraction.
This will leave around 450 billion cubic meters (bcm) of gas in the ground, Wiebes said, with an estimated value of approximately €70 billion ($81.5 billion).
The decision to halt Groningen production forced the government to broker a new deal with Shell and Exxon Mobil, whose 50-50 joint venture NAM is responsible for the field.
NAM will be required to pump as much gas as the government says is needed in the coming years. In return, it will see its share of the revenue from Groningen rise from 10 to 27 percent, Wiebes said, starting this year.
As part of the deal, NAM will also contribute a total of €500 million to strengthen the economy in the Groningen region.


New tech regulation ‘inevitable,’ Apple CEO Cook says

Updated 11 min 11 sec ago
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New tech regulation ‘inevitable,’ Apple CEO Cook says

  • ‘I’m a big believer in the free market. But we have to admit when the free market is not working. And it hasn’t worked here’
  • ‘I think it’s inevitable that there will be some level of regulation’

WASHINGTON: Apple CEO Tim Cook predicts that new regulations of tech companies and social networks to protect personal data are “inevitable.”
In an interview with news website Axios being broadcast Sunday on HBO television, Cook said he expected the US Congress would take up the matter.
“Generally speaking, I am not a big fan of regulation,” Cook said in an excerpt released by Axios. “I’m a big believer in the free market. But we have to admit when the free market is not working. And it hasn’t worked here. I think it’s inevitable that there will be some level of regulation.
“I think the Congress and the administration at some point will pass something.”
Cook has previously been a proponent of self-regulation, especially as concerns user data protection.
But following the scandal that saw data consultancy Cambridge Analytica obtain data from millions of Facebook users, Cook said the industry was now “beyond” the scope of self-regulation.
Facebook has been trying to fend off concerns about how well it protects user data and defends against use of the site to spread misinformation aimed at swaying elections.
Controversies that have battered Facebook since the 2016 presidential election in the United States have raised questions over whether co-founder Mark Zuckerberg should keep his post as chief executive.
Turning to gender inequality in the workplace, Cook said the tech industry has generally been strong in diversity, even though a male-dominated culture prevails.
“I agree 100 percent from a gender point of view that the (Silicon) Valley has missed it, and tech in general has missed it,” he said.
However, Cook added, “I’m actually encouraged at this point that there will be a more marked improvement over time.”