We have a non-operating interest in a producing concession in Denmark (Shell interest 36.8%), which was granted in 1962 and will expire in 2042. The Danish government is one of our partners with a 20% interest.
We are the operator of the Corrib gas project (Shell interest 45%). Corrib has the potential to supply a significant proportion of the country’s gas requirements. Gas started to flow from the field, which is 83 kilometres off Ireland’s northwest coast, on December 30, 2015.
We have two non-operating interests in Italy: the Val d’Agri producing concession (Shell interest 39.23%) and the Tempa Rossa concession (Shell interest 25%). The Val d’Agri Phase 2 project is currently in FEED phase and work is being carried out to manage key non-technical risks. The Tempa Rossa field is under development and first oil is expected in 2018.
Shell and ExxonMobil are 50:50 shareholders in Nederlandse Aardolie Maatschappij B.V. (NAM), the largest hydrocarbon producer in the Netherlands. An important part of NAM’s gas production comes from the onshore Groningen gas field, in which the Dutch government has a 40% interest and NAM a 60% interest.
In the second quarter of 2015, the Minister of Economic Affairs of the Netherlands (the Minister) announced a further reduction in the Groningen production for 2015 to 30 billion cubic metres (bcm), in an effort to diminish the potential for seismic activity, while allowing a further 3 bcm to be taken from the Norg underground storage to ensure security of supply. The State Council (“Raad van State”) ruled in November 2015 that the Groningen production limit be set at 27 bcm for the gas year 2016, until the Minister takes a new resolution on NAM’s production plan. The Minister is expected to approve a new development plan for Groningen no later than October 1, 2016. NAM produced 28.1 bcm from the Groningen field in 2015. While the Dutch government currently supports the full development of the Groningen gas field, any decision to change the development plan to reduce the ultimate recovery of resources would adversely affect our proved reserves.
NAM also has a 60% interest in the Schoonebeek oil field, which has been redeveloped using enhanced oil recovery (EOR) technology. NAM also operates a significant number of other onshore gas fields and offshore gas fields in the North Sea.
We are a partner in 36 production licences on the Norwegian continental shelf. We are the operator in 16 of these, of which four are producing: the Ormen Lange gas field (Shell interest 17.8%), the Draugen oil field (Shell interest 44.6%), the Gaupe field (Shell interest 60%) and the Knarr field (Shell interest 45%). We have non-operated interests in the producing fields Troll, Gjøa, Kvitebjørn and Valemon.
We operate a significant number of our interests on the UK Continental Shelf on behalf of a 50:50 joint arrangement with ExxonMobil. Most of our UK oil and gas production comes from the North Sea. We have various interests where we are not the operator in the Atlantic Margin area, principally in the West of Shetland area (Clair, Shell interest 28%, and Schiehallion, Shell interest approximately 55%). We also have non-operated interests in the Buzzard field (Shell interest 21.7%), located in the Outer Moray Firth, central North Sea; in the J-Block and Jade area (Shell interest ranging from 30.5% to 35%); interests ranging from 20% to 49% in the Beryl area fields; and other operated and non-operated interests in offshore blocks, with Shell interest ranging from 14.1% to 100%.
Rest of Europe
We also have interests in Albania, Germany and Greenland.