The decision comes as the oil giant has been under increasing pressure from environmentalists and businesses to halt its drilling operations in the Arctic Ocean.
After exploring the Burger J well site located in Alaska’s Chukchi Sea, Shell said it found indications of oil and gas “but these are not sufficient to warrant further exploration in the Burger prospect. The well will be sealed and abandoned in accordance with US regulations.”
Shell says its decision to stop drilling in the Arctic reflects the Burger J well result, the high costs associated with the project, and the federal regulatory environment in offshore Alaska.
The company has spent more than $7 billion on its failed Arctic oil drilling efforts, according to the Guardian. Abandoning the Burger J well will cost it another $4.1. billion, Shell says.