Chevron Plugs Shetland Islands Well

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Chevron, the second-largest U.S. oil company, plugged a well in the Shetland Islands off the coast of the U.K. today after the well failed to show a a reservoir of oil and natural gas. The announcement was made by Chevron's partner on the project, Faroe Petroleum Plc.

California-based Chevron (CVX) owned 90% of the well and Faroe held the remaining 10%. The Lagavulin well was drilled to depths of 5,000 and did find evidence of some hydrocarbons, but not enough to make the project worth the financial output required.

The project also took longer and was more expensive than expected, according to Bloomberg News. The Lagavulin well was the deepest yet to be drilled in the U.K.'s area of the Atlantic Margin. Results are still being evaluated and will increase explorers' knowledge of the geology of the region, Bloomberg reported, citing Faroe.

Last year, Faroe said the Lagavulin well had potential reserves of 500 million barrels of oil equivalent, making the lack of hydrocarbons found in recent drilling and the decision to plug and abandon the well all the more disappointing.