Energy giant Statoil is to exit Alaska following recent exploration results in neighbouring leases.
Statoil said the move was part of committment to “optimising its portfolio, strengthening financial performance, and positioning for long-term value”.
The decision comes at a time when global oil prices have fallen sharply, making complex and costly exploration projects less economical.
The leases in the Chukchi Sea are no longer considered competitive within Statoil’s global portfolio, so the decision has been made to exit the leases and close the office in Anchorage, Alaska.
In September, Shell pulled out of controversial drilling off the coast of Alaska after failing to find sufficient signs of oil and gas to make further exploration worthwhile.
The Norwegian operator said it would cease exploration activity in the region “for the foreseeable future”, blaming high costs associated with the project and a “challenging and unpredictable regulatory environment”.
Shell also faced sustained protests by environmental groups opposed to development in pristine Arctic waters.
Tim Dodson, executive vice president for exploration in Statoil, said: “Since 2008 we have worked to progress our options in Alaska.
Solid work has been carried out, but given the current outlook we could not support continued efforts to mature these opportunities,” says Tim Dodson, executive vice president for exploration in Statoil.
The decision means Statoil will exit 16 operated leases, and its stake in 50 leases operated by ConocoPhillips, all in the Chukchi Sea.
The leases were awarded in the 2008 lease sale in Alaska and expire in 2020.
Statoil said its experience gained in Alaska, have given the company significant skills and expertise that can be leveraged in other opportunities in northern environments in the future.
“Our understanding of the challenges and opportunities has increased considerably over the last years. This gives Statoil a unique position and experience which the company will continue to apply going forward,” said Dodson.