London: Royal Dutch Shell is exiting a key natural gas project in Abu Dhabi owing to the collapse in global energy prices.
Shell said in a statement yesterday that it had decided not to develop the Bab sour gas reservoirs with state-run Abu Dhabi National Oil Company against a backdrop of plunging oil markets.
Faced with a dramatic collapse in oil prices, the energy sector is seeking to cancel or delay projects, slashing expenditure and thousands of jobs, and taking billions of dollars of writedowns in the value of assets.
Shell’s exit from the sour gas project follows its decision last year to abandon drilling in Alaska after failing to find commercial qualities of oil. The company also shelved the Carmon Creek oil-sands project in Canada in October.
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