Shell halts Arctic drilling after one day

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

Related Topics

Stocks

   
Election 2014

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Eyeing Role

Eyeing Role

Top economist Jagdish Bhagwati eyes role in Modi government  Full Article 

Election 2014

Election 2014

Breakingviews: Singh wasn’t king, Modi could be  Full Article 

Telecom Sector

Telecom Sector

Japan's NTT DoCoMo to exit India telecoms joint venture - sources  Full Article 

Next Nokia CEO

Next Nokia CEO

Nokia to name Rajeev Suri as next CEO on Tuesday - report  Full Article 

Conspiracy Lawsuit

Conspiracy Lawsuit

Apple, Google agree to pay over $300 million   Full Article 

Stock Split Trend

Stock Split Trend

Trend-setter Apple's stock split could bring out the copycats  Full Article 

Winning Start

Winning Start

Microsoft beats Wall Street on new CEO debut   Full Article 

Reuters India Mobile

Reuters India Mobile

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