The first well drilled as part of a Shell-operated project off Canada is a write-off.
Joint venture partner Suncor said Shell Canada had advised that the exploration well in the Shelburne Basin had been completed and was “non-commercial”.
Suncor said it would write off its share of the well costs – expected to amount to about $105million – in the third quarter.
The Shelburne Basin exploration project is a deep-water drilling program involving six exploration licences located about 250 kilometres off Halifax, Nova Scotia.
Shell holds the operatorship and 50% of the venture, ConocoPhillips Canada East Coast Partnership has a 30% stake, and Suncor is on 20%.
Shell said it had contracted the Stena IceMAX drillship to drill the wells.
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