Royal Dutch Shell looks for $4bn yearly boost from new projects
ROYAL Dutch Shell’s two massive natural-gas projects in Qatar will increase the company’s cash flow by $4bn (£2.6bn) a year when they start up in 2011, according to chief executive Peter Voser.
Voser said the Pearl gas-to-liquids plant and Qatargas 4 – a liquefied-natural-gas development – would deliver 350,000 barrels a day of oil.
That is the equivalent to some 10 per cent of Shell’s current output.
He said: “These projects combined will have a substantial impact on Shell’s worldwide production and generate sustained positive cash flows for decades to come.”
Voser was speaking after Shell showed analysts around Pearl and Qatargas 4, two projects that are vital to the company’s growth strategy. With a price tag of $18bn to $19bn, Pearl — which will convert Qatari natural gas into diesel and other high-value oil products — is the biggest single project in the global oil industry.
Shell hopes the projects will mark a turning point in the company’s fortunes after years of declining production.
Shell’s output has fallen by as much as 15 per cent since 2005 while its costs have risen by 40 per cent, according to Deutsche Bank.