Shell Pulls Out of Qatar Gas Project

Royal Dutch Shell has decided to abandon plans to explore for natural gas in Qatar's Block D after its QSD-1 well failed to turn up commercial volumes, two sources told news agency Reuters.

According to Reuters, the development could disappoint Qatar Petroleum, which was to be the off-taker of any gas produced.

Part of the Block D concession extends beneath Qatar's North Field.

"Shell only pulled out of that section of the North Field (that overlaps with Block D), and they will continue to work on other (Qatari) projects," one of the two Qatar Petroleum sources told Reuters, while the other said Shell had been out of the D license for months.

A third source said Shell planned on additional development drilling in the North Field to replace slowing output from existing wells.

Shell holds 75 percent stake in the project while 25 percent interest is held by PetroChina.