“Shell will now cease further exploration activity in offshore Alaska for the foreseeable future. This decision reflects both the Burger J well result, the high costs associated with the project, and the challenging and unpredictable federal regulatory environment in offshore Alaska,” the company said in a press release.
The stakes were high for Shell. The company sunk about $4 billion into the drilling campaign – it holds a 100 percent working interest in 275 Outer Continental Shelf blocks in the Chukchi Sea, a basin the half the size of the Gulf of Mexico which remains mostly unexplored.
Geologists estimate that a full 13 percent of the world’s total oil and gas reserves are locked in the undersea Arctic, and the Burger prospect, about 241 kilometres from the city of Barrow, holds an estimated 4.3 billion barrels of oil equivalent alone.
“Shell continues to see important exploration potential in the basin, and the area is likely to ultimately be of strategic importance to Alaska and the US. However, this is a clearly disappointing exploration outcome for this part of the basin,” Shell Upstream Americas director Marvin Odum said in the press release.
Arrow Exploration has spud a new production well on the Tapir block in Colombia’s Llanos Basin, the company announced on… Read More
Petronas has made a third oil and gas discovery in Suriname's offshore Block 52, the Malaysian company announced on Wednesday Read More
Japanese power generation player JERA on Thursday announced plans to invest USD 32 billion in LNG, renewables and new fuels… Read More
Chevron is planning to exit its North Sea operations after 55 years of activity in the oil hotspot, Reuters reported… Read More
Seatrium has been awarded a contract by SBM Offshore for the topsides fabrication and integration of an additional FPSO vessel… Read More
Diamond Offshore has secured a USD 350-million extension for an ultra-deepwater drillship deployed for Anadarko Petroleum in the US Gulf… Read More
This website uses cookies.