Wildlife Campaigners Halt Shell's Artic Operation

Environmental groups have forced Shell to halt drilling operations in the Artic after a court challenge from indigenous Alaskans and green groups.

The US Court of Appeal has banned all drilling activity pending a hearing in August. Shell and other operators have come under attack from the World Conservation Union which is urging the companies to help protect the western grey whales and polar bears around Sakhalin Island.

In a statement issued last week, the World Conservation Union said: "Without more rigorous noise management and mitigation efforts on the part of Sakhalin Energy and other companies operating in the region, their activities may have significant long-term effects on gray whales attempting to feed in this area."

The court case will no doubt deliver a big blow to Shell's timetable and future exploration plans in the Artic. In 2005, Shell said its geological analysis and experience with offshore developments in Arctic conditions, including successful exploration in Alaska, gave it confidence to build a significant position in the region, starting in the Beaufort.

Today Shell says it has proposed a three-year Plan of Exploration (POE) from 2007-09 on leases for the Alaskan Beaufort Sea that includes a proposal for drilling three wells at their Sivulliq prospect.

The company says it is currently working with the community and other stakeholders to obtain the required permits for operating in the Beaufort for drilling operations this summer.

A spokesman for Shell in London told www.offshore-technology: "We continue to welcome discussions with the North Slope communities and leaders to reach agreement ahead of any exploration activities this summer and recognise that the pending court appeal decision creates a tighter timeline for drilling operations than was previously envisaged."

"However, we will continue to work with the Court and the North Slope Borough, particularly in regards to whaling."

By Ozge Ibrahim