WSJ: Shell to pull out of Qatar gas project

|By:, SA News Editor

Royal Dutch Shell (RDS.A, RDS.B) reportedly plans to pull out of a natural gas project in Qatar following disappointing results from the Pre-Khuff formation in the giant North Field off Qatar's coast.

Shell last year drilled a dry well in the field's Block D, which Qatar had considered the area's most promising exploration acreage, and the company is said to be discouraged from even attempting to drill a second well.

Shell's potential withdrawal is a blow to Qatar, which has become the world's largest producer of liquefied natural gas; several other energy companies have signed contracts to explore for gas in the formation, including Cnooc (NYSE:CEO) and GDF Suez (OTCPK:GDFZY, OTCPK:GDSZF).