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Wednesday, September 19, 2012

Shell suffers new setback

 9/17/2012
Noble Discoverer | Photo: Shell

Shell's offshore Alaska drilling plans are on hold until 2013 after its containment barge Arctic Challenger sustained damage during inspection, the supermajor announced on 17 September 2012.

Shell's Arctic Challenger containment barge was undergoing inspection tests by the U.S. Coast Guard when the containment dome on board was damaged during its final test. Shell must have Coast Guard approval for its containment system before drilling in oil-bearing zones can take place.

With the drilling season coming to a close, Shell said it would need an unspecified amount of time to repair the dome.

'We are disappointed that the dome has not yet met our stringent acceptance standards,' Shell said in a statement. 'But, as we have said all along, we will not conduct any operation until we are satisfied that we are fully prepared to do it safely.

Environmentalists Greenpeace see the setback as a victory.

'Shell spent nearly $5 billion to exploit global warming for profit this summer, but the Arctic is proving to be the company's Waterloo,' said Dan Howell, Greenpeace U.S. Deputy Campaigns Director. 'Today's news is vindication for the efforts of the global movement to stop Shell, but the fight continues.'

Despite the delay, Shell said it intends to use the remainder of its drilling season completing topholes in the Chukchi Sea in preparation for its 2013 campaign. Shell said it expects its drillship Noble Discoverer resume operations at its Burger-A prospect within the next few days.

In a statement released late Monday, Secretary of the Interior Ken Salazar complimented Shell on their commitment to safety.

'The Department has set rigorous safety, environmental protection and emergency response standards for any exploration activities in the Arctic, and throughout this process, Shell has demonstrated a commitment to those standards,' Salazar said. 'We look forward to continuing to work with Shell to maximize the remaining opportunities this drilling season provides while doing so in a manner that expands domestic energy production, creates jobs, protects people, and safeguards our natural resources.'

Audrey LeonBy: Audrey Leon,
aleon@oilonline.com

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