Elwood Brehmer, Alaska Journal of Commerce, August 29, 2018
Our Take: Good to see the private sector providing alternatives to a government run project. Can someone get a gas contract?
Major oil company Eni buys ‘prime’ acreage in hunt for North Slope oil
Alex DeMarban, Anchorage Daily News, August 29, 2018
Italian oil major Eni announced on Wednesday it’s buying what it calls a promising chunk of North Slope acreage from Caelus Exploration Alaska, in a deal that moves exploration leases from a small oil company to a global producer. Eni will acquire 124 exploration leases in an area about 20 miles southeast of Deadhorse, the industrial support town serving giant Prudhoe Bay and other northern Alaska oil fields, Eni said in a statement. In Alaska, Caelus is perhaps best known for announcing a massive discovery in Smith Bay in 2016, an offshore site far from existing infrastructure. The Dallas-based company said in 2017 it was delaying additional drilling to confirm the discovery, citing difficulties linked to low oil prices and some $75 million in tax credits the state owed the company.
Our Take: When the state doesn’t pay their bills – companies make tough decisions.
Natural Gas News, August 30, 2018
Italian explorer Eni has acquired 124 exploration leases for a total of 350,000 acres onshore in the eastern North Slope of Alaska from Caelus Alaska Exploration Company, it said late August 29. Eni will hold all the leases with a 100% working interest. The area is southeast of the giant Prudhoe Bay oil field, close to existing infrastructure, and is considered a “prime area with high potential and multiple proven plays, between two of the largest hydrocarbon discoveries in North America: Prudhoe Bay and Point Thompson.” These are among the sources of the gas that will be needed if Alaska LNG is ever developed.
Our Take: This is the kind of activity that will strengthen our economy and create jobs. “Eni will apply its business model and experience through a fast-track exploration with a short time to market of the potential new discoveries.” Best wishes to Eni!!
Elizabeth Earl, Peninsula Clarion, August 29, 2018
A citizens’ group won’t receive a water reservation in a stream on the west side of Cook Inlet after all. Alaska Department of Natural Resources Commissioner Andy Mack issued a decision Tuesday denying an application from the Chuitna Citizens Coalition for an instream flow reservation — essentially, the right to a minimum amount of water in a stream — on a tributary of the Chuitna River on the west side of Cook Inlet near Tyonek.
Our Take: A good decision by Commissioner Mack. As Mack points out, with PacRIm no longer pursuing a project there “It is not in the public interest to grant a reservation that could completely preclude or significantly hinder a future potential use without full information on the potential use and options, especially where resources can be protected through DNR’ s other permitting and regulatory processes if an actual threat to such resources arises.”
Josh Lewis, Upstream Online, August 30, 2018
Meghan Gordon, S & P Global Platts, August 30, 2018