Shell and Exxon begin the sale of a large Dutch gas company

According to Reuters reports, Shell (SHEL) and Exxon Mobil (XOM) have put up one of the largest and oldest natural gas production enterprises in Europe at a price of more than $ 1 billion. Shell and Exxon have recently begun selling NAM’s offshore gas operations, including dozens of fields, about 20 offshore platforms, a network of pipelines, and three processing plants.

NAM began producing natural gas in 1963 after the discovery of the giant Groningen field and has been the primary gas source for the Netherlands and Europe for decades. However, since 2014, its production volumes have been steadily declining. They will fall even more in the coming years after the Dutch government decided to close Groningen to limit the seismic risk in the region. The government said the field will be in 2023 or 2024 but may extend its service life.

NAM’s offshore and onshore assets for sale produced about 2.4 million cubic meters of natural gas per day in 2021. They could increase production to 2.8 million cubic meters per day with additional investments. The asset package includes NAM’s shares in three gas processing plants at the Den Helder terminal, which process 53% of all gas produced offshore in the Netherlands, and shares in several pipeline networks. According to sources, the assets at $1 billion to $1.5 billion.