North European Oil Royalty Trust (the Trust) was organized in 1975 as the successor entity to North European Oil Corporation and North European Oil Company. Since November 11, 1981 the units of beneficial interest of the Trust have traded on the New York Stock Exchange, originally under the symbol NET but since January 29, 2002 under the symbol NRT.
The Trust is administered by five Trustees, one of whom is designated the Managing Trustee, and the Managing Director. The purpose of the Trust is to collect, hold and verify royalties paid into the Trust by the operating companies, German subsidiaries of the Exxon Mobil Corporation and the Royal Dutch/Shell Group of Companies. The royalties are paid out in whole cents on a quarterly basis to the Trustís unit owners after making allowances for anticipated administrative expenses. The royalties are derived from the sale of natural gas, sulfur and oil extracted by the operating companies from the Trustís overriding royalty areas in northwestern Germany as specified in the terms of the two royalty agreements in place. Additionally the Trustees and Managing Director are responsible for complying with all the legal and financial requirements imposed upon a publicly traded business. Further information regarding the Trust is available in the annual and quarterly reports and the filings with the Securities and Exchange Commission that can be accessed in the Investor's section of this website.
The Trust has not issued and does not issue any debt or equity securities other than units of beneficial interest and, pursuant to the Trust Agreement which created the Trust, the Trust is not permitted to do so.
Aerial view of Grossenkneten
BEB, a joint venture between ExxonMobil
Corp. and the Royal Dutch/Shell, is an integrated
gas supply company which is active in exploration,
production, import, underground storage and sales
of natural gas. As the largest German natural
gas producer, BEB provides their customers access
to a secure gas supply through a well-balanced
structure ensuring gas availability. More than
half the natural gas which BEB has at its disposal
to cover the demand of its customers comes from
its own domestic resources. About 50% of the German
gas reserves contain hydrogen sulfide with varying
concentrations which must be removed before it
can be put to commercial use as a clean environment-friendly
energy. BEB therefore operates a gas desulfurization
plant at Grossenkneten located south of the city
of Oldenburg. At the plant the hydrogen sulfide
is removed from the natural gas and then converted
to elemental sulfur.
Drilling Rig BEB 1
To maintain a ready and stable gas supply for
the future BEB is always looking for new gas reservoirs.
Therefore generally deep wells with a depth of
more than 4000 m (13, 000 ft) have to be drilled.
The BEB drilling rig operates with the rotary
method. It works on the principle of rotating
the drill-string with the drill bit via a rotary
table on the surface driven by an electrically
||Christmas tree at the Visbeck
Z 3 sour gas well site
The natural gas will be produced from wells located
at so called well sites. The visible part of a gas
well is the so called christmas tree which forms
the wellhead and allows a safe gas production.
Part of a sour gas well site
Sulfur solvents are pumped into the sour gas wells
preventing elemental sulfur from clogging in the
production string. Solvents and reservoir water
are co-produced with the gas and removed in the
gas dehydration units installed at each production
well. The liquids discharged from the gas are
collected in tanks.
Details of the equipment on a sour gas well
From the dehydration unit, the gas flows through
metering devices to permit the field measurement
of the raw gas volumes. The gas is then transported
by way of flow lines to gathering stations and
finally to the Grossenkneten plant where the sulfur
present in the natural gas is removed.
|Aerial view of a sour gas
The natural gas is produced from
wells located at the so called well site where
the gas flows out of the production well. Reservoir
water which is co-produced with the gas is separated
at the well site. The gas is then fed into BEBs