NEW YORK, Dec 18 (Reuters) - Oil major Shell Oil said on Thursday it will not drill in Alaska's Beaufort Sea next year after a court ruled in November that federal officials failed to address environmental impacts when they granted the company a permit.
'As a result of the court's ruling, we have ... decided not to pursue a drilling program in 2009. Additionally, we will not pursue a 3D seismic program in 2009,' Shell said in a release.
Shell said hundreds of jobs associated with drilling program 'won't materialize' and that its operating investment will be reduced by tens of millions of dollars.
The company has filed a petition for rehearing with the U.S. Court of Appeals for the Ninth Circuit, which ruled on the case in November.
The U.S. Minerals Management Service did not properly consider the risks of oil spills, disturbance to migrating whales, disruptions to the traditional hunting lifestyle of Inupiat Eskimos and other potential harms from Shell's program to drill at a prospect known as Sivulliq, the court ruled.
(Reporting by Timothy Gardner; Editing by Christian Wiessner)
((timothy.gardner@thomsonreuters.com; RM: timothy.gardner.reuters.com@reuters.net; 646-223-6058)) Keywords: ENERGY SHELL/BEAUFORT (For help: Click 'Contact Us' in your desk top, click here or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com ; +1 646-223-5546) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'As a result of the court's ruling, we have ... decided not to pursue a drilling program in 2009. Additionally, we will not pursue a 3D seismic program in 2009,' Shell said in a release.
Shell said hundreds of jobs associated with drilling program 'won't materialize' and that its operating investment will be reduced by tens of millions of dollars.
The company has filed a petition for rehearing with the U.S. Court of Appeals for the Ninth Circuit, which ruled on the case in November.
The U.S. Minerals Management Service did not properly consider the risks of oil spills, disturbance to migrating whales, disruptions to the traditional hunting lifestyle of Inupiat Eskimos and other potential harms from Shell's program to drill at a prospect known as Sivulliq, the court ruled.
(Reporting by Timothy Gardner; Editing by Christian Wiessner)
((timothy.gardner@thomsonreuters.com; RM: timothy.gardner.reuters.com@reuters.net; 646-223-6058)) Keywords: ENERGY SHELL/BEAUFORT (For help: Click 'Contact Us' in your desk top, click here or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com ; +1 646-223-5546) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.