Shell arctic program hampered by ship damage
Shell said it does not anticipate the incident will hinder its plan to explore for oil in the US arctic ocean for the first time since 2012, but the company acknowledged it is too early to know for sure. "The answer will ultimately depend on the extent of the repairs," Shell said.
Shortly after the ice management vessel the MSV Fennica left Dutch Harbor, Alaska, on 3 July, crew members were alerted to a leak in the vessel's ballast tank. The Fennica returned to port, where inspectors discovered a breach in the hull. "Repair options are being considered," Shell said.
The Fennica was carrying the capping stack that Shell would deploy in the event of a well blowout. The Fennica is owned by Finland-based shipping company Arctia Offshore.
Shell does have available a second icebreaker, Arctia's Nordica, in its flotilla of support vessels for its arctic drilling program.
Shell hopes to drill up to six wells on its Burger Prospect in the Chukchi before the drilling season in the arctic ends on 31 October. The company is still awaiting drilling permits from the Interior Department's Bureau of Safety and Environmental Enforcement (BSEE).
The incident with the Fennica sparks memories of Shell's mishap-laden 2012 drilling program. That year, a containment dome on the Arctic Challenger was damaged during testing near Seattle. The Noble Discoverer dragged its anchor and nearly ran aground on the Alaska coast shortly after, raising concerns about its ability to operate in harsh arctic conditions. At the end of the drilling season Shell opted to move its Kulluk drilling rig through the Gulf of Alaska in December, only to have it run aground on Sitkalidak island after breaking free from its towing vessel during stormy weather.
Shell managed to conduct some preliminary drilling work known as a "top hole" on its Burger A site in the Chukchi and drilled a second top hole at its Sivulliq site in the Beaufort Sea in 2012. But after the containment dome was damaged, Shell was barred from penetrating into hydrocarbon-bearing zones in those wells.
BSEE said yesterday a decision on the drilling permits may come out "later this week".
Interior's Fish and Wildlife Service is requiring that Shell space out drilling operations by at least 15 miles — six miles farther than Shell deems necessary — to avoid disturbing foraging or migrating walruses. Shell had argued that its drilling units should be allowed to operate within nine miles of one another, saying the science does not indicate the nine mile limit has any greater effect on the animals than activity 15 miles distant. But regulators retained the buffer requirement.
Fish and Wildlife's authorization stipulates that no more than two simultaneous seismic operation and three exploration drilling operations will be allowed at any given time.
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