Royal Dutch Shell has abandoned plans to explore for gas in Qatar's Block D after recent drilling failed to turn up commercial volumes at its majority-owned QSD-1 well, sources said.

Shell said earlier yesterday that it had wrapped up activity at the well after the negative result, while adding that it remained committed to future plans in Qatar.

Qatar has been a major source of production growth at Shell for over three years, since the major invested $20 billion to build one of the world's biggest liquefied natural gas (LNG) export plants as well as a cutting edge gas-to-liquids facility, Pearl.

Shell's exit from the 8,089 sq km licence area may also disappoint Qatar Petroleum, which was to be the off-taker of any gas produced. Part of the Block D concession extends beneath Qatar's prized North Field, the world's biggest gasfield that feeds giant liquefaction trains. Qatar is the world's top LNG exporter.

"Shell only pulled out of that section of the North Field (that overlaps with Block D), and they will continue to work on other (Qatari) projects," the Qatar Petroleum sources said. - Reuters