Shell has abandoned controversial plans to start drilling for oil in the Arctic this year after a final test of its environmental protection equipment failed to meet the standards required to gain a full drilling permit.
The oil and gas group said a new type of “containment dome” – designed for use in the event of a leaking wellhead – had been damaged during testing.
“During a final test, the containment dome aboard the Arctic Challenger barge was damaged,” Shell told investors in an update on Monday morning. “It is clear that some days will be required to repair and fully assess dome readiness.”
As a result Shell has been unable to secure a permit to undertake full drilling operations and will have to wait at least until after the Arctic winter to resume its efforts.