Petroleum News marketing & advertising brochure page ANGDA puts study of route for page Exploration gets waist deep in April: page BG tells Alaska legislators LNG to 6 Gubik gas spur line out to bid 10 Anadarko done for the winter 8 Far East economic;West Coast not Vol. 13, No. 27 • www.PetroleumNews.com A weekly oil & gas newspaper based in Anchorage, Alaska Week of July 6, 2008 • $1.50 Vol. 13, No. 16 • www.PetroleumNews.com A weekly oil & gas newspaper based in Anchorage, Alaska Week of April 20, 2008 • $1.50 Vol. 13, No. 6 • www.PetroleumNews.com A weekly oil & gas newspaper based in Anchorage, Alaska Week of February 10, 2008 • $1.50 ● GOVERNMENT ● EXPLORATION & PRODUCTION ● LAND & LEASING Petroleum Club hosts book signing Latest Petroleum Directory ACMP under scrutiny Exploration moves Chukchi high five AMY SPITTLER State seeks ways to improve program to address issues with 2003 reforms PACIFIC ENVIRONMENT State of Alaska asks for comments on two exploration license proposals Alaska OCS sale draws five international players, $2.7 billion in high bids By ALAN BAILEY “The coastal districts want to be able to By KRISTEN NELSON Petroleum News By ERIC LIDJI acres near Houston and Willow, north and east of write policies to effect change to projects Petroleum News Spectacular geology Petroleum News the Parks Highway. laska’s Division of Coastal and Ocean … and the way the state has implemented The state Division of Oil and Gas received both t began routinely enough for an Alaska oil and draws majors to Chukchi Management has launched a reevaluation of the plan, the districts have very little he state released information on April 14 proposals last April, and requested competing pro- gas lease sale with a seemingly too-small bid by The chips are on the table in the search for the Alaska Coastal Management Program, or about the two companies asking to explore posals this past December. Having received none, A room to write enforceable policies.” an unfamiliar company, followed by bids in the oil and gas under the remote Chukchi Sea, off ACMP. The reevaluation represents a two different underdeveloped the proposals will now both go out for public I —Randy Bates, director, Division T tens of thousands and hundreds of thousands of Alaska’s northwest coast. But, with ice-laden response to some issues surrounding changes in basins, one in Southcentral comment, which the state will accept through June of Coastal and Ocean Management dollars per block by five well known international water for many months of the year, a severe cli- ACMP enacted in 2003 and will likely result in Alaska and another in the Interior. New 13. players, most with Alaska operations or land posi- mate and no supporting infrastructure, why did further changes to the program, Randy Bates, BGI North America LLC is player tection of coastal areas are met. tions. oil companies place $3.4 billion at risk in the director of DCOM, told Petroleum News July 2. Jason Sielak, George Olemaun, Vernon Kaleak, Dave Evikana, requesting an oil and gas exploration Yukon, if you try Then bids hit the million-plus range; then the U.S. Minerals Management Service’s Feb. 6 “It seemed like the right time to reevaluate and Ekaterina Evseeva, Leah Zimmerman, Yury Viktorovich Yukhnovets, license covering around 72,443 acres in Multiple agencies Hugh Olemaun, Ivan Mikhailovich Atlasov, Yury L’vovich Vasilyev, BGI, or Berkeley GeoImaging LLC, is an tens of millions. Twenty million seemed high, then lease sale? make sure we’ve got the program structured the Meerim Kylychbekova, Harry Olemaun and Rachel James lean the Crooked Creek-Circle basin, east of the com- Former M-I Swaco Alaska manager and Petroleum Club of The ACMP process involves several state and Oakland, Calif.-based independent exploration $50 million. Somewhere along the way Shell and $100-a-barrel oil and an escalating world- way we want it,” Bate said. against the Olemaun whaling crew’s boat, outside of Nate munity of Central and south of the community of Anchorage president Craig Bieber hosted a book signing at the federal agencies working with 33 coastal districts Olemaun’s house in Barrow. See story below. and production company founded in 1998 by ConocoPhillips started duking it out over the same wide oil demand certainly help. But the key club on June 19 for his new novel, “Saylor’s Triangle.” See story in Under the terms of the 1972 federal Coastal Circle. around the state to ensure compliance with James Rector, who also teaches applied seismolo- tracts — sometimes far apart in bids, sometimes Oil Patch Insider below. Zone Management Act, all projects in Alaska’s LAPP Resources Inc. is requesting a natural enforceable coastal policies. In many cases the see GEOLOGY page 22 coastal zone require a review for ACMP consisten- Indigenous Russian gas exploration license covering around 21,080 see CHUKCHI page 21 see PROPOSALS page 18 Sheffield to lead AOGA for 2008- cy, to ensure that policies for environmental pro- see ACMP page 22 leaders take lessons ● LAND & LEASING 09; Craig Bieber novel ‘Saylor’s from Alaska Natives; ● GOVERNMENT ● NATURAL GAS Triangle’ makes Anchorage debut Ahmaogak sees stint Chukchi Sea ‘next step’ THE ALASKA OIL AND GAS ASSOCIATION named Ken with Shell as beneficial Foreign takeover blocked Sheffield, president of Pioneer Natural Resources Alaska Inc., as LNG or natural gas project? The latest Petroleum Directory will be mailed to Petroleum News its new president, effective July 1. SHELL PRESIDENT JOHN print subscribers in a separate envelope. View the Directory PDF at Norway’s StatoilHydro teams with Italy’s ENI in Alaska OCS lease sale HOFMEISTER wasn’t the only visitor to Canada blocks Minnesota firm’s purchase; signals policy shift for foreign acquisitions www.PetroleumNews.com The association’s other officers are first vice president, Doug Econ One: Pipeline along Alaska Highway probably trumps LNG plan basin with long-term growth potential, while also Alaska’s North Slope Borough in the last By ERIC LIDJI Suttles (president of BP Exploration advancing the Arctic initiative,” Engebretsen month. By GARY PARK Petroleum News (Alaska) Inc.); second vice presidents: By ERIC LIDJI values over the life of the project. “When it comes to decisions on whether Canadian Beaufort up for bids wrote. Pacific Environment, an environmental organization based in For Petroleum News Mark Hanley (Alaska public affairs manag- Petroleum News “In the end, it’s not just about the per- foreign purchases represent a net benefit ith 16 successful bids in the Chukchi lease unit value that you get. It’s about maximiz- San Francisco, brought a delegation of four Russian indigenous The Canadian government has reloaded the trap to see if it er, Anadarko Petroleum Corp.), John Zager he Web site for the Canadian government’s to Canada, my bottom line is this: Canada sale on Feb. 6, StatoilHydro, the world’s StatoilHydro continues partnership with ENI liquefied natural gas project can ing the total pie,” Barry Pulliam, senior leaders from the resource-rich Sakha Republic to Barrow and can repeat last year’s success when it lured Imperial Oil and (Alaska general manager, Chevron North ruling Conservative party carried a bold head- must retain jurisdiction and control of largest offshore oil and gas producer, final- StatoilHydro, through its U.S. subsidiary earn more on less, more or less. But economist with the consulting firm Econ Nuiqsut in late March to meet tribal leaders, organizations and ExxonMobil Canada to the Beaufort Sea with one of the W America Exploration) and Craig Haymes line “Defending Canada’s National Interest.” ly arrived in Alaska, home to some of the StatoilHydro USA E&P, Inc., bid nearly $57 mil- more and more, a big pipeline One Research, told state lawmakers June local residents. According to an Arctic Sounder article by Tamar T technologies that are vital to the future of region’s largest work commitments. (Alaska production A For the first time in 23 years since a previ- most promising and challenging offshore lion on 33 leases in OCS Lease Sale 193 for the through Canada can earn more on our industry.” Interest in the Northern Oil and Gas Directorate’s 2008 manager, 20 in Anchorage. “You can have a high see INSIDER page 19 prospects in the world. ous Conservative government enacted a law gov- offering of petroleum exploration rights will be concentrated Chukchi Sea on Feb. 6. ExxonMobil more, according to a legislative consultant per-unit netback, but on a low volume it —Canadian Industry Minister Jim Prentice The bids follow a string of complex projects for erning foreign takeovers of Canadian companies, on five parcels totaling 2.84 million acres in the Beaufort- The company partnered on 14 of its 16 high Production Co.); and testifying during an on-going special ses- doesn’t necessarily get you the same eco- the Norwegian oil company, and StatoilHydro sees JUDY PATRICK the administration of Prime Minister Stephen bids with ENI Petroleum USA LLC, the U.S. sub- sion on natural gas issues in Alaska. nomic value as if you have a little bit lower Enstar submits new Cook Inlet Mackenzie Delta area. treasurer, Rick Fox BILL WALKER Harper has blocked a deal. Now the question is whether this was pure the Chukchi Sea as a natural progression, accord- sidiary of Italian super major Eni S.p.A. Broken down: an LNG project sending per-unit netback on a much greater vol- In addition, bids have also been invited for one 203,000- (Alaska asset manag- gas contract to RCA for 2009-13 In a startling move, giving new meaning to the grandstanding, or an indication of how far Harper ing to Halvor Engebretsen, vice president for The winning leases sit about 37 miles north of North Slope natural gas to Asia could likely earn ume.” er, Shell Exploration and Production Co.