Shell Announces Pause in Alaska Drilling Programme
THE HAGUE, February 27, 2013
THE HAGUE, February 27, 2013 /PRNewswire/ --
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
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.
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 be, forward-looking statements. Forward-looking statements are statements
of future expectations that are based on management's current expectations and
assumptions and involve known and unknown risks and uncertainties that could
cause actual results, performance or events to differ materially from those
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among other things, statements concerning the potential exposure of Shell and
the Shell Group to market risks and statements expressing management's
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of Shell and the Shell Group and 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 with the identification
of suitable potential acquisition properties and targets, and successful
negotiation and completion of such transactions; (i) the risk of doing
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market conditions in various countries and regions; (l) political risks,
including the risks of expropriation and renegotiation of the terms of
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
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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
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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.
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SOURCE Royal Dutch Shell plc
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