Shell put Alaskan drilling on ice

London – Royal Dutch Shell plc has decided to pause its exploration drilling activity for 2013 in Alaska’s Beaufort and Chukchi Seas to prepare equipment and plans for a resumption of activity at a later stage.

Shell, which is one of the leaders in an industry move into offshore Arctic exploration, said it wanted to better leverage its experience in Arctic and sub-Arctic environments to prepare for safe activities in Alaska. The company emphasised, though, that it is committed to drill there again in the future.

While, Alaska holds huge hydrocarbon resources, its remote and challenging environment requires special expertise, technology and an in depth understanding of the environmental and societal sensitivities unique to the region.

“We’ve made progress in Alaska, but this is a long-term programme that we are pursuing in a safe and measured way,” said Marvin Odum, director, upstream Americas. “Our decision to pause in 2013 will give us time to ensure the readiness of all our equipment and people following the drilling season in 2012.”

Shell completed top-hole drilling on two wells in 2012 in the Beaufort and Chukchi Seas, marking the industry’s return to offshore drilling in the Alaskan Arctic after more than a decade. This drilling was completed safely, with no serious injuries or environmental impact.

After the drilling season ended, however, one of Shell’s drilling rigs, the Kulluk, was damaged in a maritime incident related to strong weather conditions. The Kulluk and the second drilling rig, the Noble Discoverer, will be towed to locations in Asia for maintenance and repairs.