Government's Groningen gas production plan rejected by advisory council

|By:, SA News Editor

The Netherlands' top administrative court rejects the government's plan to cap production at the Groningen gas field and orders a new decision on how much gas can be extracted from the field where drilling has triggered minor earthquakes.

The government had proposed capping production at 21.6B cm/year over the next five years, down from 24B cm in the production year just ended and 39.4B cm in 2015-16; the court orders the government to review its decision within the next 12 months, but production may be maintained at 21.6B cm for the year through Oct. 1, 2018.

NAM, the joint venture between Royal Dutch Shell (RDS.A, RDS.B) and Exxon Mobil (NYSE:XOM) that operates the Groningen field, says it is studying the ruling.