BAKU, Azerbaijan, March 12
By Leman Zeynalova – Trend:
In the period 2020-2022, Royal Dutch Shell is contractually committed to deliver to third parties, joint ventures and associates a total of 7,735 billion scf of natural gas from our subsidiaries, joint ventures and associates, Trend reports citing the company.
“We sell crude oil and natural gas from our producing operations under a variety of contractual obligations. Most contracts generally commit us to sell quantities based on production from specified properties, although some natural gas sales contracts specify delivery of fixed and determinable quantities, as discussed below. In the past three years, we met our contractual delivery commitments, with the notable exceptions of Egypt, Trinidad and Tobago, and Malaysia,” said the company.
Shell said that the sales contracts contain a mixture of fixed and variable pricing formulae that are generally referenced to the prevailing market price for crude oil, natural gas or other petroleum products at the time of delivery.
“In the period 2020-2022, we expect to meet our delivery commitments for almost all the areas in which they are carried, with an estimated 75.6 percent coming from PD, 5.4 percent through the delivery of gas that comes available to us from paying royalties in cash, and 19% from the development of PUD as well as other new projects and purchases.”
Before taking production into account, Shell’s proved reserves increased by 906 million boe in 2019. “This comprised of increases of 912 million boe from Shell subsidiaries and of decreases of 6 million boe from the Shell share of joint ventures and associates.”
After taking production into account, Shell’s proved reserves decreased by 482 million boe in 2019 to 11,096 million boe at December 31, 2019.
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