Exxon Plans Significant Investment in Search of German Gas
US energy giant Exxon said it planned to invest hundreds of millions of euros in Germany to tap what are estimated to be vast quantities of natural gas reserves.
Exxon is reportedly is drilling exploration wells to study the unconventional gas potential in the German states of Lower Saxony and North Rhine Westphalia.
In an interview, the chairman of Exxon Mobil Central Europe, Gernot Kalkoffen, told German business daily Handelsblatt that the company believed North Rhine-Westphalia (NRW) had huge amounts of gas.
"We are planning an amount clearly in the six-figure zone during the exploration phase," he said, when asked how much Exxon would invest.
NRW, which was once the heart of the German coal industry, could have the second largest reserves in Europe with 2.1 trillion cubic metres (74.2 cubic feet) of natural gas.
Kalkoffen said the amount invested would depend on the concentration of gas and how efficiently it could be extracted.
"If we're lucky, we could see billions (of euros) flow."
We're looking at an amount in the hundreds of millions for the exploration phase," said Kalkoffen.
The nine companies looking to drill in North Rhine-Westphalia have secured options for different areas of the state. With gas deposits in rock strata estimated at 2,100 billion cubic metres, the site could prove to be Europe's second largest store of natural gas.
In November, the WAZ media group reported that Exxon Mobil, along with energy firms from Australia, Canada and Germany, had been granted permission by the state to conduct test drilling that would cost millions.
But how high that sum might be depends on the concentration of natural gas reserves in the state and whether mining them proves profitable.
Kalkhoffen said a successful venture could result in more than €1 billion in investment.
"In Lower Saxony, up to a €1 billion in royalties have been paid in previous years," Exxon Mobil's boss in Europe said.
Read the Full Article in Handlesblatt (in German) HERE