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

Nifty Above 8,600

Nifty Above 8,600

Nifty hits record high above 8,600; state-run lenders gain  Full Article 

Bhopal Tragedy

Bhopal Tragedy

Bhopal's toxic legacy lives on, 30 years after industrial disaster  Full Article 

Essar Group

Essar Group

Exclusive - Essar's planned oil-for-steel deal tests Iran sanctions  Full Article 

Islamic Fund

Islamic Fund

India gets new Islamic equity fund but debt market still off-limits  Full Article 

Fiscal Deficit

Fiscal Deficit

April-October fiscal deficit nears 90 pct of full-year target  Full Article 

Oil Prices

Oil Prices

Oil hits new four-year low post OPEC as glut looms  Full Article 

Gold Imports

Gold Imports

Nov gold imports seen climbing on expectation of curbs   Full Article 

Reuters India Mobile

Reuters India Mobile

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