FX.co ★ Shell seeks more time for drilling in Arctic

The largest corporation Royal Dutch Shell made a request to the USA president to extend the permission granted earlier on the drilling in Alaska by 5 years. The main reason of the request is vast costs arisen from the necessity to solve additional legal issues. In other words, the company cannot meet the deadline because the time was spent to confirm documents; and the drilling did not start. It is worth mentioning that Royal Dutch Shell spent 8 years and $6 billion to finance the oil-field exploration in the Arctic, therefore, the company asks the Obama's administration to prolong the license. “Despite Shell's best efforts and demonstrated diligence, circumstances beyond Shell's control have prevented — and are continuing to prevent — Shell from completing even the first exploration well,” said Shell Alaska Vice President Peter Slaiby in the letter to the Bureau of Safety and Environmental Enforcement. All operations were stopped after the series of legal actions from the Environmental Defense. The board of directors think that for the reasonable development the leases in the Chukchi and Beaufort seas should be extended. The current agreements will terminate in 10 years. The main complaint of the ecologists is the inability to provide the safe drilling in the conditions of the Arctic's severe climate even given that, according to the USA legislation; the drilling there should stop every year until the October 1 when the ice cover forms. At present time, the government of the US scrutinizes the current drilling safety regulations in the Arctic; Shell called this another reason of uncertainty that the company has to face.