The Alaska Division of Oil and Gas announced an oil and gas lease sale for all available state acreage across the North Slope region. Bidding will run from Oct. 20 – Nov. 3, with the winning bids published on Nov. 9.
“The State of Alaska remains open for business,” said Governor Mike Dunleavy. “While we’re frustrated that the federal government is limiting exploration on federal lands in Alaska, the State is committed to making millions of prospective acres in Alaska available for lease. Alaska’s resources are a national security asset and can help our domestic energy needs and the needs of our allies around the world. My administration is standing by to support companies that want to invest in The Last Frontier.”
This is set to be the 25th North Slope Areawide sale. Each fall, the State offers all unleased acreage as part of the North Slope region oil and gas sale. Since the late 90s, the sales brought more than $310 million in cash bonuses for the State of Alaska. A portion of the revenues have been deposited into the principal of the Alaska Permanent Fund for the long-term benefit of Alaskans as required by the Constitution, with the remainder appropriated by the Legislature to provide essential public services.
The region is split into three “areawide” sale locations:
- The North Slope Areawide sale in the central region will offer 3.1 million acres on 1,992 tracts.
- The Beaufort Sea Areawide sale, comprising the state-owned and managed offshore acreage, will offer nearly 900 thousand acres on 309 tracts.
- The North Slope Foothills Areawide sale to the south will offer 4.3 million acres on 818 tracts.
Industry lessees currently hold nearly 2 million acres on over 1,100 leases within the North Slope location and more than 700,000 acres on 255 leases in the Beaufort Sea region. Of those leases, 355 are currently in production and paying royalties to the State.
“The North Slope continues to be a compelling opportunity for oil and gas development,” according to acting DNR Commissioner Akis Gialopsos. “We’re encouraged by the major new sanctioned developments in the region and the ongoing exploration and development efforts we see across the North Slope. We invite both current producers and new explorers to continue that momentum towards success.”
Details of the sale are available on the Division of Oil & Gas website.