By Yereth Rosen
ANCHORAGE, Alaska, March 7 (Reuters) - ConocoPhillips plans to drill up to two exploration wells in remoteArctic waters next year and is undeterred by numerous setbackssuffered there by rival Royal Dutch Shell Plc, a Conocoofficial said Thursday.
The oil major is targeting a prospect called Devils Paw inthe Chukchi Sea, Mike Faust, the Chukchi program manager, saidat the National Oceanic and Atmospheric Administration's (NOAA)annual Arctic Open Water Meeting.
ConocoPhillips' exploration plan is under review by theBureau of Ocean Energy Management, and the company expects tosubmit additional information next week, Faust added.
The Chukchi, off northwestern Alaska, is where Shell begandrilling its Burger prospect in a season abbreviated by permitproblems, floating ice interference and vessel mishaps. Shellalso started drilling a well in the Beaufort Sea off northernAlaska.
Shell announced last week it would skip drilling in 2013 soit can improve its equipment, including a drillship damaged in aDec. 31 grounding in the Gulf of Alaska and another that needsrepairs to be allowed back into Arctic waters. Both vessels arebound for Asian shipyards.
Faust said ConocoPhillips would take Shell's experience intoaccount, but said there were key differences between theirrespective Arctic efforts.
Devils Paw is farther south in the Chukchi than Shell'sprospects, so ConocoPhillips' operations will be in an areawhere sea ice melts earlier in the spring and forms later in thefall, meaning a longer open-water season in most years, he said.
ConocoPhillips also plans to use a jackup rig, with legsthat will rest directly on the sea floor, rather than a mobiledrillship like the two used by Shell.
The rig ConocoPhillips will deploy is being built by Noble and will be designed for extreme weather conditions,Faust told the NOAA meeting. "We're not going to bring up a30-year-old piece of equipment," he added.
Shell's drillships are decades old, and refurbished forArctic conditions.
The Kulluk, which is grounded, is owned by Shell and wasused in the Beaufort, while Noble-owned Discoverer operated inthe Chukchi under contract. Both racked up several air-qualityviolations, and the Discoverer was cited by the U.S. Coast Guardfor 16 safety and environmental deficiencies now beinginvestigated by the Justice Department.
Alaska Native leaders at the NOAA meeting said they wereskeptical about ConocoPhillips' ability to avoid ice hazards andcontrol pollution and noise that would disturb marine mammals.
Even the name is bothersome for an "area we use forresources," said Harry Brower, head of the Alaska Eskimo WhalingCommission. "Devils Paw - that's kind of insulting," he added.
Faust said the rig would be able to pull out of the areaquickly if ice conditions became dangerous. He promised thatConocoPhillips would consult with Inupiat Eskimo residents toavoid conflicts, and cited a long history in Arctic Alaska.
As for the name, it came from a mountain peak in theWrangell Range of eastern Alaska, he added.