Shell Sends Arctic Drilling Rigs to Asia for Repairs

Royal Dutch Shell (Shell) has sent two of its drilling rigs in Alaska to Asian shipyards for repair, forming doubt over Arctic exploration prospects for 2013.

The Kulluk, damaged when it ran aground nearly two months ago, will be towed to a dry dock in Asia. The Noble Discoverer will go to a Korean shipyard. The result of inspections and any repairs will decide when they return to service.

Shell had spent about $4.5 billion in the past seven years seeking to drill in Alaskan waters before its rigs suffered mishaps. A company spokesperson confirmed that no official decision on 2013 activities have been made, but Shell remains committed to safely exploring Alaska’s offshore energy resources.

The oil giant Shell promises to remain very cautious in the environmentally sensitive region and the two rigs would need more work to be ready for the 2013 season.

U.S. Interior Secretary Ken Salazar ordered a 60-day review of Shell’s activities on January 8th, following the Kulluk’s grounding. Meanwhile, environmental groups continue to urge President Obama to suspend current and pending Arctic drilling permits until operators prove they can work safely.

Lastly, The U.S. Environmental Protection Agency issued a notice to Shell last month saying operating the Kulluk while drilling in the Arctic Ocean violated its permit under the Clean Air Act. Each violation can mean a penalty of $37,500 a day, reported Bloomberg.