NEW YORK (TheStreet) -- Royal Dutch Shell (RDS.A) , which has the first shale-gas production sharing contract in China, will reduce its project in Sichuan province because of geological challenges and the area's dense population, Bloomberg reports.
The company and China National Petroleum Corp. had planned billions of dollars in investment from this year to meet the country's energy demand., Bloomberg said.
Shell will now focus mainly on the development of the Changbei tight gas field in the Shaanxi region.
Shares of Royal Dutch Shell are up 0.33% to $80.07.
TheStreet Ratings team rates ROYAL DUTCH SHELL PLC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ROYAL DUTCH SHELL PLC (RDS.A) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows: