Shell to cease further exploration in Alaska

A cyclist rides past a sign showing the prices of gas at a filling station in San Francisco, California July 22, 2015.  REUTERS/Robert Galbraith

A cyclist rides past a sign showing the prices of gas at a filling station in San Francisco, California July 22, 2015. REUTERS/Robert Galbraith

28 September 2015

Tags:business, business news  financial news, business finance, small business websites


Royal Dutch Shell Plc (RDSa.L) said it would cease exploration activity in offshore Alaska for the “foreseeable future” and take a writedown of about $4.1 billion after failing to find enough oil in the region.

The company said it did not find sufficient amounts of oil and gas in the Burger J well, located in the Chukchi Sea about 150 miles from Barrow, to warrant further exploration.

The decision to stop exploration reflects the project’s high costs and the unpredictable federal regulatory environment in offshore Alaska along with the Burger J well results, the company said.

Shell said its Alaskan position is valued at about $3 billion with a further $1.1 billion in future contractual commitments.

Tags:business, business news  financial news, business finance, small business websites

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