Oil companies have halted drilling in the Arctic for the second time this year after Norwegian oil company Statoil said its exploration plans for the Arctic Ocean were not viable.
The company said it would stop drilling by June 2018 in an effort to preserve its rights and interests in the region.
Statoil, Norway’s largest oil company, said in a statement that it will resume exploration in the North Atlantic Ocean beginning on June 5.
Stato said it will begin drilling in a new area and is confident that it can safely and effectively operate there.
It added that the exploration plans “are no longer sustainable, as we no longer have the technology and experience required to safely operate in the ice-bound Arctic.”
Statoil’s decision comes less than a month after Norwegian authorities decided to stop drilling in an area known as the Northern Sea Route, an area of Arctic sea that lies between the North Pole and Greenland.
Norwegian authorities said they would not resume drilling for five years.
Statol’s decision to halt drilling in Norway comes after an explosion that killed five people and injured more than 60 others in the northern part of the country’s oil industry in May.
Statola said it had not yet decided what its next steps would be in light of Statoil and other companies’ actions.
It also announced plans to invest $300 million in the company’s drilling efforts.
The accident occurred in the town of Vittig, near Norway’s southernmost city of Tromsø.