Shell exec has eyes set to the North
Royal Dutch Shell (ticker: RDSA) is preparing to return to the Arctic and begin exploring for the first time since 2012, according to Chief Financial
Source: Rosneft
Officer Simon Henry. Henry said the oil major is preparing “an armada of 25 vessels” to begin a two-year program to explore two to three wells in the Chukchi Sea of the coast of Alaska, reports Reuters.
Shell pulled out of the Arctic in 2012 after the drill vessel Kulluk ran aground off an island near Kodiak as it was being towed across the Gulf of Alaska. Shell drilled pilot holes and dug mudline cellars in both the Chukchi and the Beaufort seas prior to leaving the region.
Shell submitted plans to explore the Arctic to the U.S. Department of Interior after the Obama administration upheld a 2008 Arctic lease sale, clearing a hurtle for the company. “We are currently on track,” said Henry. “Some of the permits are issued at the last moment.”
The 25 ship armada will provide the necessary equipment to deal with any mishaps, which Henry said are a “very low probability.” The company’s new plans call for two ships, the Noble Discoverer and the Polar Pioneer, owned by Transocean Ltd. (ticker: RIG), to drill and provide relief to each other in case of an accident. The additional vessels would provide support, according to the Associated Press.
Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. The company or companies covered in this note did not review the note prior to publication. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.
