(MENAFN- ProactiveInvestors)Arctic exploration drilling is set to resume imminently now that Royal Dutch Shell (LON:RDSB) has received its final permit for the programme. It was confirmed late on Monday that the US authorities granted Shell permission to resume operations in the Arctic waters of the Chukchi Sea off Alaska's north west coast. Shallow drilling operations had previously begun - above any oil targets - as Shell worked to maximise its chances in what is due to the harsh environment a short operating window. Deep drilling into the Burger exploration well could start in 'mid-August' according to Deutsche Bank. The German bank highlights the significance of the programme in terms of Shell's overall exploration plans for this year. Drilling costs are expected to be in the order of US$1.4bn which is more than a third of the capital budget for Shell's conventional exploration in 2015 according to Deutsche Bank analyst Lucas Hermann who says the Anglo-Dutch firm is likely to spend the same again next year. Not only is the programme in a geographically and meteorologically challenging environmental concerns have also meant there have been regulatory and public relations obstacles as well. Campaigners have protested against arctic oil drilling as they believe any environmental damage such as an oil spill could be devastating to the region and could also have broader environmental consequences. The US Bureau of Safety and Environmental Enforcement granted permission for the Shell drill programme to take place so long as the operations are flanked by the Fennica icebreaker vessel which is equipped to cap an 'out-of-control' within 24 hours. Shell will now drill the Burger exploration well down to a target depth of 8000 feet. The exploration campaign is targeting multi-billion barrel prospects though for all the work so far the company has yet to successfully complete a well.
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