Northern Alaska Oil & Gas Lease Bids Total More than $7 Million
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Oil and gas exploration companies offered more than $7 million for the rights to explore for oil and gas on 191,248 acres of State of Alaska land in the Arctic region.
The North Slope and Beaufort Sea Areawide lease sales saw an increase in the number of tracts receiving bids, acres sold, and number of bidders over the last sale in Fall 2019.
Despite economic conditions from COVID-19 and low oil prices seen over the past year, the number of tracts receiving bids and total amount bid is encouraging for the industry’s future in Alaska. “This is good news for Alaskans,” says Tom Stokes, director of the Division of Oil and Gas.
“We look forward to working with these companies to ensure Alaska’s future in energy development.”
Many of the tracts receiving bids have been leased before, with well or seismic survey information linked to them. This means new bidders will be able to leverage available data to refine exploration targets to develop our resources for the benefit of all Alaskans.
Between the North Slope and Beaufort Sea areas, 115 bids were received, totaling more than $7 million from five bidders.
Great Bear Petroleum, which recently received approval for the Alkaid and Talitha units to begin oil development, acquired offset acreage to their units.
Hilcorp North Slope, which took over as operator of the Prudhoe Bay Unit (PBU) last year, bid on tracts adjacent to PBU.
Oil Search and Lagniappe added to their inventory of leases, perhaps bolstering future drilling targets.
The fifth bidder, Arctic Circle Exploration, is new to the state.
This is promising news for Alaskans, who depend on oil and gas to power the economy and ensure a bright future for the state.
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.