Shell Announces Pause in Alaska Drilling Programme
THE HAGUE, February 27, 2013/PRNewswire-FirstCall/ --
Royal Dutch Shell plc ("Shell") today announced it will pause its exploration
drilling activity for 2013 in Alaska's Beaufort and Chukchi Seas to prepare
equipment and plans for a resumption of activity at a later stage.
"We've made progress in Alaska, but this is a long-term programme that we are
pursuing in a safe and measured way," said Marvin Odum, Director, Upstream
Americas. "Our decision to pause in 2013 will give us time to ensure the
readiness of all our equipment and people following the drilling season in
2012."
Alaska holds important energy resources. At the same time, securing access to
those resources requires special expertise, technology and an in depth
understanding of the environmental and societal sensitivities unique to the
region. Shell is one of the leaders in an industry move into offshore Arctic
exploration. The company continues to use its extensive experience in Arctic and
sub-Arctic environments to prepare for safe activities in Alaska.
Alaska remains an area with high potential for Shell over the long term, and the
company is committed to drill there again in the future. If exploration proves
successful, resources there would take years to develop.
Shell completed top-hole drilling on two wells in 2012 in the Beaufort and
Chukchi Seas, marking the industry's return to offshore drilling in the Alaskan
Arctic after more than a decade. This drilling was completed safely, with no
serious injuries or environmental impact. After the drilling season ended,
however, one of Shell's drilling rigs, the Kulluk, was damaged in a maritime
incident related to strong weather conditions. The Kulluk and the second
drilling rig, the Noble Discoverer, will be towed to locations in Asia for
maintenance and repairs.
"Shell remains committed to building an Arctic exploration program that provides
confidence to stakeholders and regulators, and meets the high standards the
company applies to its operations around the world," said Odum. "We continue to
believe that a measured and responsible pace, especially in the exploration
phase, fits best in this remote area."
Notes for Editors
Royal Dutch Shell plc ("Shell") is a leading oil and gas exploration player,
with upstream activities in over 50 countries world-wide. Exploration and deals
in conventional basins and resources plays added 12 billion barrels of oil
equivalent (boe) resources for Shell in 2010-2012.
Shell has ambitious exploration plans worldwide. Exploration drilling activity
will step up in 2013-14. Shell expects to drill over 40 high-potential wells in
18 conventional basins, and test 10 key resources plays for tight gas and
liquids-rich shales. Plans for 2013 call for a $7 billion exploration and
appraisal programme spanning both early production opportunities and longer-term
development plays.
Cautionary note
The companies in which Royal Dutch Shell plc directly and indirectly owns
investments are separate entities. In this announcement "Shell", "Shell Group"
and "Royal Dutch Shell" are sometimes used for convenience where references are
made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the
words "we", "us" and "our" are also used to refer to subsidiaries in general or
to those who work for them. These expressions are also used where no useful
purpose is served by identifying the particular company or companies.
"Subsidiaries", "Shell subsidiaries" and "Shell companies" as used in this
announcement refer to companies in which Shell either directly or indirectly has
control, by having either a majority of the voting rights or the right to
exercise a controlling influence. The companies in which Shell has significant
influence but not control are referred to as "associated companies" or
"associates" and companies in which Shell has joint control are referred to as
"jointly controlled entities". In this announcement, associates and jointly
controlled entities are also referred to as "equity-accounted investments". The
term "Shell interest" is used for convenience to indicate the direct and/or
indirect (for example, through our 23 per cent shareholding in Woodside
Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or
company, after exclusion of all third-party interest.
This announcement contains forward looking statements concerning the financial
condition, results of operations and businesses of Shell and the Shell Group.
All statements other than statements of historical fact are, or may be deemed to
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could cause those results to differ materially from those expressed in the
forward looking statements included in this announcement, including (without
limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in
demand for Shell's products; (c) currency fluctuations; (d) drilling and
production results; (e) reserves estimates; (f) loss of market share and
industry competition; (g) environmental and physical risks; (h) risks associated
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contracts with governmental entities, delays or advancements in the approval of
projects and delays in the reimbursement for shared costs; and (m) changes in
trading conditions. All forward looking statements contained in this
announcement are expressly qualified in their entirety by the cautionary
statements contained or referred to in this section. Readers should not place
undue reliance on forward looking statements. Additional factors that may affect
future results are contained in Shell's 20-F for the year ended 31 December 2011
(available at http://www.shell.com/investor and http://www.sec.gov). These
factors also should be considered by the reader. Each forward looking statement
speaks only as of the date of this announcement, 27 February 2013. Neither Shell
nor any of its subsidiaries nor the Shell Group undertake any obligation to
publicly update or revise any forward looking statement as a result of new
information, future events or other information. In light of these risks,
results could differ materially from those stated, implied or inferred from the
forward looking statements contained in this announcement.
Enquiries:
Shell Media Relations:
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Americas, +1-713-241-4544
Shell Investor Relations:
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Source: Royal Dutch Shell plc