Dutch oil, gas firm NAM slashing budget after drilling decision

Dutch oil and gas firm NAM has to significantly cut its costs to reach its financial targets, a company's spokesman confirmed after a report by FD. The costs incurred by the company have to decrease by at least 25 percent. There are two main reasons why revenue is falling, according to the company. Those are the decreasing gas prices and a government-imposed restriction on production after earthquakes in Groningen. At the same time, the company is facing steady rising costs. NAM announced the cuts two weeks ago, but then mentioned no specific targets. It is not clear whether the cuts will result in personnel layoffs. It is too early to establish that, according to the company's spokesman. Until July 1, the limit for production is 16.5 billion cubic meters. Then the government shall determine a safe amount for the rest of 2015. Starting next year, the authorities will consider how much gas the country can import in order to reduce the need for Groningen resources.