Canada energy regulator keeps Arctic requirements

Reuters News
Posted: Dec 15, 2011 1:13 PM
Canada energy regulator keeps Arctic requirements

CALGARY, Alberta (Reuters) - Canada's National Energy Board said on Thursday that any company that wants to drill for oil and gas in Arctic waters will need to demonstrate it has the capacity to drill a relief well in the same drilling season to cope with possible well blowouts.

In the conclusion to a review launched following BP Plc's Macondo blowout, the board said it decided to maintain the same-season provision despite requests from drillers to waive the requirement.

The NEB also said it would need to be assured that any company that wanted to drill a well in Arctic waters had the financial capacity to handle losses or damages from a blowout and spill, with no upper limit on the amount required, as proof of financial responsibility.

(Reporting by Scott Haggett; editing by Rob Wilson)