Dutch-Anglo oil giant Shell said on Monday it would cease exploring for oil in offshore Alaska for the ‘foreseeable future’ because it is not, so far, worth while.

Shell said in a statement it has ‘found indications of oil and gas in the Burger J well, but these are not sufficient to warrant further exploration in the Burger prospect.’ The well will be sealed and abandoned in accordance with US regulations, the company said.

The decision also reflects the ‘high costs associated with the project, and the challenging and unpredictable federal regulatory environment in offshore Alaska’, the Shell statement said.

Shell said the decision to stop drilling will cost it $4.1bn. The balance sheet value of Shell’s Alaska position is approximately $3.bn, and a further $1.1bn stems from contractual commitments.

Shell was given a licence by the US government to start drilling for oil in the seas around Alaska in May, despite warnings by protestors it could lead to an environmental disaster.