Shell announced it will drop one of Norway’s biggest and most innovative industrial projects, Ormen Lange, due to rising costs.
Shell said on Friday it would postpone a project to provide subsea compression in the North Sea field.
Ormen Lange is Norway’s second largest gas field.
The decision will not be re-evaluated for several years, Shell said.
Odin Estensen, chairman of the Ormen Lange Management Committee said, “The oil and gas industry has a cost challenge. This, in combination with the maturity and complexity of the concepts and the production volume uncertainty, makes the project no longer economically feasible.”