Shell halts Arctic drilling after one day

LONDON, Sept 11 Tue Sep 11, 2012 12:43pm IST

Related Topics

Stocks

   

LONDON, Sept 11 (Reuters) - Royal Dutch Shell halted oil drilling in the Chukchi Sea in the Arctic on Monday just one day after starting as sea ice encroached on its drill ship, the company said in a statement.

"As a precautionary measure ... Shell has made the decision to temporarily move off the Burger-A well to avoid potentially encroaching sea ice," it said.

"Once the ice moves on, the Noble Discoverer (drilling ship) will re-connect to anchors and continue drilling."

Shell won a temporary permit to operate its drilling rig offshore Alaska just days ago. It has spent about $4.5 billion on its effort to drill Arctic oil, but has run into regulatory problems.

On Thursday the Department of the Interior allowed Shell to begin some "limited" drilling in the offshore Chukchi region, that is only navigable for a few months a year.

The company is still waiting for its oil-spill containment barge, the Arctic Challenger, to be approved by the Coast Guard. Without the containment system, the Department of the Interior said it would not allow Shell to proceed.

In light of the delays, Shell has asked the government to extend its oil drilling season beyond the Sept. 24 deadline.

FILED UNDER:

Reuters Showcase

Land Ordinance

Land Ordinance

Modi says willing to make changes in land decree  Full Article 

Sahara Woes

Sahara Woes

SEBI cancels Sahara's portfolio management licence  Full Article 

Gold Demand

Gold Demand

India gold demand muted, eyes cut in import duty  Full Article 

Coffee's Hot

Coffee's Hot

IPO could value Cafe Coffee Day at $1 billion  Full Article 

Sahara Salaries

Sahara Salaries

Some staff say Sahara has not paid salaries for months   Full Article 

DLF Fined

DLF Fined

DLF says reviewing $8.4 million SEBI penalty  Full Article 

GM Corn

GM Corn

Monsanto says GM corn trial in final stage in India  Full Article 

Rail Budget

Rail Budget

Breakingviews - India goes back to future with $137 bln rail push  Full Article | Full Coverage 

Clean Energy

Clean Energy

India says clean energy a $160 billion opportunity over five years  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage