Italian Oil and Gas Company Eni to begin Arctic Oil Quest Even as Shell Quits Alaska

Published By : 01 Oct 2015 | Published By : QYRESEARCH

The Italian oil company Eni has decided to go ahead with its oil exploration plans in the Arctic by the end of this year, even as Shell has decided to step back of similar plans for its oil quest in Arctic.

While Shell’s plans to retreat from the oil exploration quest from Chukchi Sea rejoiced environmentalists, Eni is making final preparation for a US$5.5 bn project in the Norwegian region of Arctic. The Goliat project will be an offshore oil field project located at the globe’s northernmost point and will lead pump nearly 100,000 barrels of oil every day from reserves that are believed to hold nearly 8 billion cubic metres of oil and about 175 million barrels of oil.

A spokesperson for the company said that the work at the project has reached its final stage. The 64,000-tonne floating platform of the project is already in place and the wells have also been drilled, and the project is ready for imminent production of oil and gas.

But the company, one of the largest oil and gas companies of Europe, is still waiting for its final approval from authorities in the Norwegian region.

The start of production at Goliat is a very important milestone for the global oil and gas industry as it looks at Arctic as the major new frontier for the oil and gas industry, but the work has come at a price. The completion of the project is running two years behind schedule and has surpassed the estimated budget by over £1.1 billion.

At the start of this year, as the return of Shell attracted the attention of international media and environmentalists, Eni’s development in building one of the largest oil platforms in the region went unnoticed. A spokesman from the company sought to distance its project from the project Shell was planning to develop in the Alaskan arctic by insisting that Eni’s project is in a region that is considered to be the manageable zone of Arctic since it mostly remains ice-free as compared to the other parts of Arctic

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