Shell gets US approval for Arctic drilling

The Anglo-Dutch oil major can now explore the Chukchi Sea, off the Northern Alaska’s coastline, provided it obtains valid permits from agencies regulating the environment and marine mammal health, US officials confirmed late on Monday.

Abigail Ross Hopper, director of BOEM, said: "We have taken a thoughtful approach to carefully considering potential exploration in the Chukchi Sea.

"As we move forward, any offshore exploratory activities will continue to be subject to rigorous safety standards."

Shell halted Arctic exploration more than two years ago following problems including an oil rig fire and safety failures.

The company has to-date spent £3.85bn in the region and recently reaffirmed its commitment to Arctic drilling despite its relatively high costs and the streamlining of operations elsewhere in wake of the oil price decline.

Shell, which intends to commence drilling in the summer, is currently in the process of acquiring FTSE 100 rival BG Group.

The Arctic is thought to hold around 20% of the world’s undiscovered oil and gas reserves, but environmental groups remain vehemently opposed to the move.