HALIFAX - Nova Scotia's offshore regulator has cleared Shell Canada (TSX:SHC) to resume drilling one of two exploration wells after an accident in March that saw two kilometres of pipe break off a wellhead and sink to the ocean floor.
The Canada-Nova Scotia Offshore Petroleum Board says it spent three months conducting a thorough review of the March 5 incident and investigation report, and engaged independent expertise in deep-water drilling to provide additional oversight.
CEO Stuart Pinks says in a statement that the board is satisfied the cause of the accident has been properly determined, and drilling may resume safely.
However, until the board has completed further reviews, Shell Canada must disconnect the drill ship Stena IceMax from the wellhead when waves reach five metres in height, instead of eight metres.
Before allowing the company to resume drilling, the board says it sought and received assurance on a number of matters arising from its review, including equipment, procedures, training, and risk management.
The board says no one was injured and no well fluids or synthetic oil-based drilling fluids were spilled to the environment.
