(Reuters) - Royal Dutch Shell
Plc (RDSa.L) said it would cease exploration activity in offshore Alaska
for the "foreseeable future" and take a writedown of about $4.1 billion
after failing to find enough oil in the region.
The
company said it did not find sufficient amounts of oil and gas in the
Burger J well, located in the Chukchi Sea about 150 miles from Barrow,
to warrant further exploration.
The
decision to stop exploration reflects the project's high costs and the
unpredictable federal regulatory environment in offshore Alaska along
with the Burger J well results, the company said.
Shell said its Alaskan position is valued at about $3 billion with a further $1.1 billion in future contractual commitments.
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