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Mammoet, a private engineering company, will be responsible for the closure of Groningen's gas fields

Mammoet announced on Thursday that it would support one of the largest gas well closures projects in the history of the world. This follows Dutch government directives to cease production at the Groningen Field.

Private engineering firm will provide engineering and logistical support to Nederlandse Aardolie Maatschappij, a joint venture between Shell and Exxon, for the decommissioning of all onshore gaswells that are closed along the Groningen Field, located north of The Netherlands.

NAM is the operator of the gas field that was Europe's major gas supplier for many decades.

The Dutch government, despite massive reserves, decided to reduce production rapidly in 2018 to avoid seismic risks. It stopped it completely last year.

The Dutch Senate passed in April a law that permanently closed the gas field, preventing any possible resumption.

Mammoet stated in a press release that "Closure began on May 1, 2024 and the project is expected to last for over a decade."

This project will remove 800 gas wells and 1,750 km (1,087 mile) of pipeline.

Exxon-Shell asked an arbitration tribunal in February to determine whether the state should compensate the companies for ceasing gas production on the fields. (Reporting from Seher Dareen in Bengaluru and Mrinalika Roi; editing by Vijay Kishore.)

(source: Reuters)