Shell U.K. Exploration & Production (Shell Expro) lat week canceled plans to dump its Brent spar loading buoy in the Atlantic Ocean off the U.K because of pressure from European governments.
With environmental campaign group Greenpeace claiming victory over Shell Expro, the U.K. Department of Trade & Industry (DTI) said the company will have to work hard to persuade it to sanction other disposal options.
Shell's decision to reverse its dumping decision surfaced after a week of mounting protest from governments in continental Europe and boycotts of Shell gasoline stations in Germany and netherlands.
Greenpeace landed another handful of activists on the spar by helicopter as it was being towed from Brent field in the U.K. North Sea. They planned to chain themselves to the structure to keep it from being sunk.
CHANGE OF PLANS
Royal Dutch Petroleum Co. Pres. Cor Herkstoter and Shell Transport & Trading Co. plc Chairman John Jennings issued a joint statement June 20 on the change of spar abandonment plans.
The Royal Dutch/Shell chiefs supported Shell U.K plans for disposal of the structure as the best environmental choice and reiterated that the U.K government had approved the dumping plan.
"However," they said, "as the disposal involved the Atlantic deep water, other governments participating in the Oslo-Paris convention have taken an interest and voiced strong objections.
"Notwithstanding the considerable efforts to convince these governments of the arguments in favor of deep water disposal, most of them seem strongly opposed to it. This has put all European companies with the Royal Dutch/Shell group in an untenable position."
Shell Expro decided to abort the dumping plan and ask U.K. authorities for an onshore disposal license. This will include a full review of methods needed to minimize risks.
Industry & Energy Minister Tim Eggar said a license to dispose of the buoy onshore would not be automatic. "Shell will have to convince us that its 3 years of studies into Brent Spar disposal were inaccurate."
Eggar also said the British government is considering withdrawing a 50% contribution to abandonment costs it is required to make under license agreements.
A DTI official said there are many things to consider before government's contribution can be decided.
"Shell has been saying very convincingly that deep sea disposal is the best option," said the official. "It is now up to Shell to find somewhere to keep it in the meantime."
A Shell Expro spokeswoman said the buoy was about 50 miles away from its planned dumpsite June 20, and her company will start looking for a safe deepwater anchorage.
No British port has water deep enough to take the 300 ft high structure vertically, so options are thought to include mooring in a Norwegian fjord until an onshore disposal plan can be decided.
"At the moment, the spar must be kept moving because the anchor chains cannot be slackened," the spokeswoman said.
GREENPEACE ROLE
A Greenpeace official said the activists left the buoy after Shell's announcement, but its Altair boat will stay near the spar for a couple of days.
Greenpeace will cooperate with Shell in working toward onshore disposal, the official said, and it will argue against the government if it continues to suggest deapsea dumping is an environmentally sound option. "We have publicized offers by decommissioning companies to deal with Brent spar," said the Greenpeace official. "We don't think there will be any shortage of companies willing to do the disposal work."
Meanwhile, government seems to be digging itself further into a hole, said the Greenpeace official. DTI was said to have acted against the opinion of other government departments, including environment, in sanctioning dumping in the first place.
"DTI ignored Greenpeace's evidence and the opinion of other government departments," the Greenpeace official said. "In other countries deepsea dumping is not an option. U.K. government pretends environmental considerations are not important."
