FORBES.COM: Shell pegs Europe upstream capex at $1.7 bln/yr

Reuters, 02.16.04, 12:27 PM ET

LONDON, Feb 16 (Reuters) - Oil major Royal Dutch/Shell <RD.AS>'s European upstream oil and gas capital expenditure should reach around $1.7 billion per year for the next three to five years, a top executive said on Monday.

The energy giant also expects its European oil production to stay flat over the time period, while it sees gas production increasing slightly, said Kieron McFadyen, Shell exploration and production technical director for Europe.

"My expectation is that we will be investing, this year and beyond, something in the order of $1.7 billion (per year)," he told reporters at an industry conference, referring to European oil and gas upstream capital spending.

"We are currently working with a base programme of $1.55 billion (per year) Shell share," he said, adding that in the highest expenditure case, investment could reach $1.9 billion.

"Oil production we are trying to hold flat for as long as we can," he added. "In terms of gas, we are looking slightly up." No information was immediately available concerning Shell's current European oil and gas production levels.

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