Statoil, a major Norwegian oil company, has announced in a press release that it will be exiting its leases and closing its office in Alaska.
The company said that it no longer find the leases in the Chukchi Sea competitive within its global portfolio.
Tim Dodson, the executive vice president for exploration in Statoil, said in the press release that the company has worked to progress its options in Alaska since 2008.
Solid work has been carried out, but given the current outlook we could not support continued efforts to mature these opportunities," he said.
Statoil adds in the press release that the company will be exiting 16 Statoil-operated leases and its stake in 50 leases operated by ConocoPhilips in the Chukchi Sea.
The leases were awarded in the 2008 lease sale in Alaska and are set to expire in 2020.
Reuters adds that Statoil's pull out at Alaska's Chukchi Sea comes just weeks after Royal Dutch Shell abandoned the treacherous waters there.
Shell abandoned its oil exploration work in late September after spending billions.
Reuters adds that Shell has already spent about $7 billion on exploration in the waters of Alaska so far and it later took a charge of $2.6 billion for leaving the Chukchi Sea.
Icebergs as large as New York's Manhattan Island can be seen on the sea.
Reuters adds that the latest pullout comes as oil companies cut their spending on expensive offshore projects.
Oil companies were severely affected by the worst price crash in six years.
Reuters adds that Conoco said that their plans for the Chukchi Sea were on hold prior to Statoil's announcement.
Conoco said during their third quarter conference call that the company plans to exit all deepwater exploration by 2017.
All is not lost in Alaska, though, as Statoil said in the press release that the company has gotten significant skills and expertise in its studies, research and activities in Alaska.
Statoil can leverage these new skills and expertise in other opportunities in the northern environment in the future.
"Our understanding of the challenges and opportunities has increased considerably over the last years," Dodson said in the press release. "This gives Statoil a unique position and experience which the company will continue to apply going forward."
