Shell wins bid to drill offshore in Alaska

Source: Energy Digital

Date :07/02/2008 14:26:42

Royal Dutch Shell plc has announced that it is the highest bidder for leases in the Chukchi Sea, off Alaska’s northwest shore, despite protests from conservationists.

The news comes despite calls for the deal to be delayed until a decision had been made regarding protection for polar bears.

Several groups, including Congressional members outside the state, called for the Minerals Management Service to hold off the sale until a decision was made.

In total, seven companies offered bids amounting to nearly $3.4 billion. High bids added up to nearly $2.7 billion on 2.76 million acres.

David Lawrence, Shell Executive Vice President Exploration, said “We are committed to exploration for new oil and gas in high potential basins. Our entry into the Chukchi Sea, combined with our lease holdings in the Beaufort Sea, further solidifies our position in Alaska, which has the potential to become a new heartland for Shell. These new positions come on top of our previously-announced plans for exploration investment in 2008.”

He concluded, “We believe that success in the Alaska offshore also carries with it great potential for the state, including new job opportunities and new oil for the Trans-Alaska Pipeline. We will continue to apply our experience and technology to safe and responsible exploration in the Alaska offshore. The results of this sale underscore Shell’s commitment to benefit local communities, while respecting their way of life. We can find common solutions to develop this important domestic resource.”

The federal agency estimates the area contains 15 billion barrels of conventionally recoverable oil and 77 trillion cubic feet of conventionally recoverable natural gas.

February 7, 2008