Shell calls halt to drilling offshore Alaska

Offshore staff

THE HAGUE, the NetherlandsShell plans to seal and abandon its Burger J exploration well in the Chukchi Sea after finding only indications of oil and gas.

These are not sufficient to warrant further exploration of the prospect, the company says.

Burger J was drilled 150 mi (241 km) from Barrow in around 150 ft (45.7 m) of water and to a TD of 6,800 ft (2,072 m).

Marvin Odum, director, Shell Upstream Americas, said: “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 has decided not to pursue further exploration activity offshore Alaska “for the foreseeable future,” in light of the well results, the high costs associated with the project, and what the company terms “the challenging and unpredictable federal regulatory environment in offshore Alaska.”

The company adds that operations will continue to safely demobilize personnel and equipment from the Chukchi Sea.



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