The company said that the identified oil and gas in the well, which was drilled to a depth of 6,800ft, is insufficient to carry out further exploration in the Burger prospect.
Located approximately 150 miles from Barrow, Alaska, in about 150ft deep, the well has secured final drilling permit in August from the US Bureau of Safety and Environmental Enforcement (BSEE), under a revised exploration plan for the Chukchi Sea.
The oil drilling program in Chukchi Sea was resumed following a nearly two-year suspension. The firm suspended drilling in 2013 after the grounding of a drilling rig.
Shell holds a 100% stake in 275 Outer Continental Shelf blocks in the Chukchi Sea.
The recent decision to cease further exploration activity in the region also comes as a result of the high project costs as well as the challenging and unpredictable federal regulatory environment in offshore Alaska.
Shell Upstream Americas director Marvin Odum said: "The Shell Alaska team has operated safely and exceptionally well in every aspect of this year’s exploration program.
"Shell continues to see important exploration potential in the basin, and the area is likely to ultimately be of strategic importance to Alaska and the US.
"However, this is a clearly disappointing exploration outcome for this part of the basin."
The Arctic is estimated to host approximately 20% of the world’s unclaimed oil and gas reserves.
Image: Shell has been carrying out drilling in Arctic since 2007. Photo: courtesy of The Bureau of Safety and Environmental Enforcement.
