From Business Times – ‘Marginal oil needs to be priced at US$80’


Dateline 2011-06-07:

Oil extracted from marginal fields, or hard-to-extract areas, may need to be priced between US$70 and US$80 a barrel, Dick Benschop, vice president for strategy at Royal Dutch Shell Plc, told reporters after attending the Asia Oil and Gas Conference in Kuala Lumpur today.

The company’s Gemusut field in Malaysia is on target to begin production at the end of 2012, Mohd Anuar Taib, chairman of Shell’s Malaysia unit, told reporters.

Its North Sabah field’s output is declining by about 5 per cent a year, Anuar said. — Bloomberg

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