Damaged safety dome delays Shell Alaska operations

Royal Dutch Shell has been forced to delay plans to drill for oil and gas in Alaska after suffering a major setback in its preparations.

The company has committed to have "containment domes" in place during drilling to cap any well that suffered a leak or explosion, similar to BP's Gulf of Mexico disaster.

Shell says during testing in the last few days a containment dome was damaged and that "some days" will be required to repair and re-test it.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

This means the whole schedule of operations has had to be moved back as the company also has to accommodate whaling operations and ice floe movements, with winter on its way.

Instead of drilling into possible hydrocarbon zones the company will instead begin as many wells, known as `top holes,' as time remaining in this season allows.

These initial well digs will be capped and abandoned for the winter but there is no chance of any discovery until at least 2013.

BS