State receives $21.2 million in oil and gas lease sales
By the State of Alaska Department of Natural Resources
The State of Alaska DNR during the 2017 Northern Alaska Lease Sales.
Photo courtesy of the State of Alaska Department of Natural Resources, Division of Oil and Gas
(Anchorage, AK) – The State of Alaska held a record-breaking oil and gas North Slope lease sale today, netting competitive bids from investors around the world.
The Division of Oil and Gas received 143 bids from companies and investors seeking oil and gas leases on state lands during the division’s annual North Slope, Beaufort Sea, and North Slope Foothills area-wide oil and gas lease sales. Winning bids totaled nearly $21.2 million.
Ranked by dollar amount, this North Slope area-wide sale is the third largest of its kind since 1998, when area-wide oil and gas leasing began. By bid value, it is the largest sale since 1998, netting an average of $110 per acre.
“Today’s results are yet another indication the State of Alaska is highly attractive to oil and gas investors around the world, and we are open for business,” said Governor Bill Walker. “I am particularly pleased to see Repsol E&P adding to its promising North Slope portfolio and showing strong interest in exploration south of its existing leases in the Pikka Unit,” said Walker.
“We are excited to see the level of competition between bidder groups in this lease sale,” said Natural Resources Commissioner Andy Mack. “The surge of interest from companies that have been exploring on our lands over the last decade indicates a positive direction for the oil industry on the North Slope,” he said.
“Today’s results were stronger than we expected. On state lands, companies have already leased many of the available tracts. And yet for what acreage was available, we received extremely competitive bids. This indicates that companies are interested in exploring in Alaska,” said Chantal Walsh, director of the Division of Oil and Gas.
In the North Slope sale, the division received 124 bids on 103 tracts for a total of 179,680 acres, with winning bids exceeding $19.9 million.
In the Beaufort Sea sale, the division received 19 bids on 16 tracts totaling 37,771 acres, with winning bids totaling nearly $1.3 million. The division did not receive any bids for lease tracts in the North Slope Foothills.
The results are considered interim until the Division of Oil and Gas determines that the winning bidders are qualified and the bids valid. Following bid adjudication, the preliminary results will be posted at http://dog.dnr.alaska.gov/Leasing/SaleResults.htm later this week.