Gas producer NAM said on Wednesday has billlions of euros available to pay damages claims arising from earthquakes resulting from its extraction of gas in northern Groningen province, the Telegraaf has reported.
Earlier Shell, a 50-50 partner with US-based ExxonMobil in NAM, said it would fulfill any financial obligation it may have towards the mounting claims.
In NAM’s financial plans for the next five years, NAM has budgeted between €3bn and €6bn for claims related to the earthquake damages. In the best case scenario the claims will require some €2bn from NAM’s cash flow in the same period, the Telegraaf said.
In addition, NAM already has €1bn in cash reserves and can quickly borrow another €1.3bn from its shareholders.
NAM made the statement to alleviate fears of people affected by the earthquakes. Their uncertainty arose after it was revealed last weekend that Shell had withdrawn a clause admitting financial responsibility for NAM.
Thank you for donating to DutchNews.nl
The DutchNews.nl team would like to thank all the generous readers who have made a donation in recent weeks. Your financial support has helped us to expand our coverage of the coronavirus crisis into the evenings and weekends and make sure you are kept up to date with the latest developments.
DutchNews.nl has been free for 14 years, but without the financial backing of our readers, we would not be able to provide you with fair and accurate news and features about all things Dutch. Your contributions make this possible.