Hilcorp the Sole Bidder in State and Federal Cook Inlet Lease Sales
State tracts that received bids from Hilcorp are indicated in blue. A federal lease sale was held the same day for tracts in the southern Cook Inlet.
DNR
The only bidder in both the state and federal Cook Inlet areawide lease sales was Hilcorp. Results of the sale on December 30 show that the region’s dominant natural gas producer submitted winning bids on six state tracts and one in federal waters.
One Day, Two Sales
The Alaska Division of Oil and Gas offered more than 2.8 million acres in 721 tracts over the entire Cook Inlet sale area. The six bids from Hilcorp averaged $15.78 per acre for a total of $359,483.23 on 22,783 acres. Hilcorp Alaska currently holds 239,000 acres in Cook Inlet on 137 leases.
“It’s clear there is interest in ongoing Cook Inlet exploration and development,” says Deputy Natural Resources Commissioner John Crowther. “Alaskans’ demand for Cook Inlet natural gas remains high and the market is favorable for new development. With these promising sale results, the State of Alaska remains open for business to ensure a stable local energy supply, contribute to more predictable prices for consumers, and support national energy independence.”
The state lease sale was scheduled for the same day as the sale held by the US Bureau of Ocean Energy Management (BOEM). The Biden administration had canceled the federal sale last summer, citing lack of interest, but it was rescheduled by order of Congress.
BOEM offered nearly 1 million acres in 193 blocks of offshore areas largely south of Nikiski. Hilcorp bid $63,983 on one tract, adding to fourteen federal leases the company acquired in a 2017 sale. The new bid was near Outer Continental Shelf acreage that Hilcorp already leases.
“Alaskans will be encouraged to see that the conventional oil and gas industry continues to invest and develop in Alaska,” says Governor Mike Dunleavy. “This is especially important for our Railbelt, which relies on Cook Inlet natural gas to meet the energy needs of residents and businesses.”
Making History
The track of oil and gas development in Alaska shows the footprints of bold companies and hard-working individuals who shaped the industry in the past and continue to innovate today. The May 2024 issue of Alaska Business explores that history while looking forward to new product development, the energy transition for the fishing fleet, and the ethics of AI tools in business.