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Shell pushes on with Arctic exploration as it awaits U.S. permit

Thu, 30th Apr 2015 10:08

LONDON, April 30 (Reuters) - Royal Dutch Shell ispushing ahead with plans to explore for oil in the Arctic Oceannear Alaska this summer despite opposition from environmentalgroups.

The Anglo-Dutch oil major is preparing "an armada of 25vessels" to begin a two-year programme to explore two to threewells in the Chukchi Sea off the coast of Alaska, ChiefFinancial Officer Simon Henry said on Thursday.

"We are currently on track. Some of the permits are issuedat the last moment," he told reporters.

Although Shell had to pull out of the region in 2012 afteran oil rig ran aground, the Arctic oil reserve "remains amassive value opportunity," Simon said.

Shell has submitted plans to explore the Arctic to the U.S.Interior Department after the Obama administration last monthupheld a 2008 Arctic lease sale, clearing an important hurdlefor Shell.

The Department of the Interior will now consider thecompany's drilling plan, which could take 30 days.

Shell has lined up the necessary equipment and vessels todeal with any mishaps, which Henry said are of a "very lowprobability".

Environmental organisations fear that an oil spill would bedestructive for an ecologically sensitive region and extremelyhard to clean up in a remote area with rough and frigid seas. (Editing by Keith Weir)

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UPDATE 1-Shell to continue $7 bln buyback programme 'at pace'

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