ANCHORAGE — A state of Alaska petroleum lease sale took in just under $21 million in high bids on the North Slope and in nearshore waters of the Beaufort Sea, a step Gov. Sean Parnell hopes will help increase the volume of crude oil in the trans-Alaska pipeline.
The state received no bids for the North Slope Foothills region but tentatively sold 178 tracts covering 334,969 acres for $14.1 million on the North Slope. It also sold another 78 tracts covering 281,095 acres for $6.8 million along the Beaufort coast.
A few hours later, a federal lease sale within the National Petroleum Reserve-Alaska attracted three companies or groups that submitted high bids of $3 million for 141,739 acres. Most was in the northeast corner of the reserve where ConocoPhillips this week took a step closer to receiving a permit to build a bridge and pipe that could link leases in the reserve to North Slope infrastructure and eventually the trans-Alaska pipeline.
The state will receive 50 percent of the earnings from the federal lease sale.
Alaska officials said they were pleased with the results. Parnell in a statement called it a step toward his goal of getting a million barrels per day moving through the trans-Alaska pipeline. The line has been operating at less than a third of its 2.1-million barrel per day capacity.
Natural Resources Commissioner Dan Sullivan said after the sale that the goal of increasing competition had been met with 19 bidders. State officials have been aggressively pushing the message that Alaska remains one of the great hydrocarbon basins in the world, he said.
“To be honest, there were a number of companies that we spoke to that certainly had an interest who did not show up today,” he said. “We’re going to try to get a sense of why.”
Division of Oil and Gas Director Bill Barron noted the high volume of bidding in areas projected to yield shale oil.
“Some of those are in areas that have seen some activity in the past,” he said, referring to acreage that was released and is now leased again.
One new player was Royale Energy of San Diego, with more than 50 high bids. The company said in a release it targeted liquids-rich shale known to have sourced the Prudhoe Bay and Kuparuk oil fields.
Company co-CEO Stephen Hosmer said Royale continues to focus on natural gas production in its core area but the Alaska acreage “is an exciting opportunity to add oil to Royale’s future mix.”
Royale frequently bid against Great Bear Petroleum, which submitted more than 30 high bids in the North Slope sale. On two tracts, Great Bear bid a penny per acre higher than Royale, $40.11 vs. $40.10, to be the apparent high bidder.
Shell Offshore submitted 18 high bids in Harrison Bay in the Beaufort sale.
“Shell’s participation in today’s lease sale underscores our ambition to be a long-term partner with the state of Alaska and to build a generational business in the Alaska offshore,” Shell spokesman Curtis Smith said.
Repsol E&P USA was high bidder on 26 leases on the North Slope and five in the Beaufort Sea.
Pioneer Natural Resource submitted the highest state bids — $876 per acre on a pair of Beaufort leases.
ConocoPhillips was high bidder on at least 34 North Slope tracts.
In the federal lease sale, ConocoPhillips Alaska was high bidder on three leases and was edged out on two other by the 70&148 LLC, which was high bidder on 11 tracts.
Woodstone Resources was the third bidder in the federal sale.





Comments (8)
Add commentThis IS welfare
This is not fair market value for this land, this IS welfare for the wealthy.
How much did YOU pay for your acre?
Not only is this valuable "public land" and resources going for peanuts, think of what this industry means to our health care costs, our environmental costs, the costs we all pay for the acelleration of our warming climate.
Our Governor is all warm and fuzzy that more gross environmental, economic, and cultural destructive industries are about to take a foothold in our state for peanuts?
While we will all end up paying the price.
Alaskans we need a new Governor, not an oil lobbyist! Having oil lobbyists in our Government is why our country has not developed a sensible energy policy.
at $40.10 acre for ocean
at $40.10 acre for ocean front property?
Just think we could have non-destructive businesses in our state for that price.
Lease or sale?
I believe they are leasing mineral rights... not an outright purchase. Perhaps I'm reading it wrong. If they get a statutory warrantee deed then yes, it's crazy... but I see the words "lease sale".
You never know though...You
You never know though...You could lease some of that property and put up a lodge. I hear there are lots of tourists just clamouring to spend a week laying on the beach up at Prudhoe...
Its a lease
This is a lease, not a purchase. What happens when you lease a car? Its the same thing. At least Parnell is doing something to bring some income to this state and country. What else could be done? Borrow money from the Chinese to put up some windmills and solar panels? Maybe some factories to assemble those electric Chevy Volts (oh wait, they have all been bought back because the batteries catch on fire for no reason).
Am I right this works out to
Am I right this works out to $480.00 per year for an acre.
good lord I pay double that in property taxes and I own less than an acre! This is a sell-out.
Our state already has billions, Alaska is flush with money so why the big sell-out to the oil industry? Why do we have to sell out our way of life? Is it so that the lower 48 can continue to live over the top life styles?? really? I think this sucks.
We have a billion dollar
We have a billion dollar fishing industry and the recreational and tourism sectors are right up there.Sean boy is doing what all The republican governors are doing,pushing an agenda that enriches the 1%. everysingle Alaskan should be steamingmad over parnells roads to riches agenda. I was just reading about his plan to spend billions building a road to Tanana thats like 300 million per mile. road is for mega foreign mining operations. point is we just dont need it,. we lose are way of life, the reasons we all live here, and for what?
more stuff? what we already have is priceless.
more than meets the eye
We're talking the North Slope here, not prime fishing grounds. The lease is just to reserve the ground. Who pays for the exploration, equipment, labor, and other costs? Even then, its not a for sure deal. The oil companies front a lot of money on a gamble. Don't worry, there are royalties paid, not to mention keeping the pipleline full. Hey Empire, how about an article on how much an oil field brings in income to Alaska and the US? We should consider ourselves lucky to have resources major companies want to invest in.