WASHINGTON | Thu Aug 30, 2012 4:10pm EDT
(Reuters) – Royal Dutch Shell (RDSa.L) will be allowed to begin some “limited” drilling in Alaska’s Chukchi Sea, the U.S. government said on Thursday, as the company struggled to keep its Arctic exploration plans this year alive.
The U.S. Interior Department said Shell will be permitted to begin preparatory work in the Chukchi, but cannot tap areas containing oil until the government certifies its oil spill containment system.
Shell’s long-delayed $4.5 billion effort to drill for Arctic oil looked close to fruition this year but the company has run into snags.