Shell Pushes on with Arctic Exploration as it Awaits US Permit

Reuters

LONDON, April 30 (Reuters) – Royal Dutch Shell is pushing ahead with plans to explore for oil in the Arctic Ocean near Alaska this summer despite opposition from environmental groups.

The Anglo-Dutch oil major is preparing "an armada of 25 vessels" to begin a two-year programme to explore two to three wells in the Chukchi Sea off the coast of Alaska, Chief Financial Officer Simon Henry said on Thursday.

"We are currently on track. Some of the permits are issued at the last moment," he told reporters.

Although Shell had to pull out of the region in 2012 after an oil rig ran aground, the Arctic oil reserve "remains a massive value opportunity," Simon said.

Shell has submitted plans to explore the Arctic to the U.S. Interior Department after the Obama administration last month upheld a 2008 Arctic lease sale, clearing an important hurdle for Shell.

The Department of the Interior will now consider the company's drilling plan, which could take 30 days.

Shell has lined up the necessary equipment and vessels to deal with any mishaps, which Henry said are of a "very low probability".

Environmental organisations fear that an oil spill would be destructive for an ecologically sensitive region and extremely hard to clean up in a remote area with rough and frigid seas.

(Editing by Keith Weir)

Copyright 2017 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Jack Slater | Apr. 30, 2015
Drill Baby Drill!!


Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Directional Driller - South Texas
Expertise: Driller
Location: San Antonio, TX
 
United States Williston: Performance Development Coordinator
Expertise: Operations Management
Location: Williston, ND
 
Floorhand
Expertise: Floorhand / Roughneck|Roustabout
Location: Grand Junction, CO
 
search for more jobs

Brent Crude Oil : $50.2/BBL 3.29%
Light Crude Oil : $47.89/BBL 3.34%
Natural Gas : $2.94/MMBtu 1.37%
Updated in last 24 hours