In April 2004 it was announced that capital investment in Upstream was going to increase for 2004 including some additional exploration expense and a shift of investments towards some short-term payback projects. As part thereof capital investment in European exploration and production business - both in existing assets and the continuing development of new projects – has been increased by $150 million to $1.8 billion.
The additional $150 million will extend offshore asset life, enhance integrity and bring new projects forward. This investment will also play an important role in developing European energy for the future.
Tom Botts, Chief Executive Officer of Shell's European Exploration and Production organisation, announced the plans today in a presentation at the Offshore Northern Seas conference in Stavanger.
Mr. Botts said: "Through these investments Shell will ensure our exploration and production business in the European offshore can grow, both from our existing assets and from new projects like Ormen Lange, and enable development of European sources of energy. We are also actively pursuing new opportunities and have already awarded seismic contracts following our successful outcome of the 18th exploration round in Norway."
Mr. Botts continued: "The European offshore industry is in a healthy middle age. There are many opportunities for Shell in this heartland. The strength of Shell's European EP organization is our robust local presence and cross-border connections, which allow us to maximize existing infrastructure and develop new sources of energy for Europe – such as the Statfjord agreement bringing Norwegian wet gas to the United Kingdom; Danish gas via the Tyra pipeline to the Netherlands and the planned Balgzand-Bacton pipeline between The Netherlands and the UK. Through ventures such as Goldeneye in the UK, continuous investments in the large Groningen gas field and Dutch small fields, and the Ormen Lange development in Norway, we will help sustain Europe's supply of energy."
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