Arctic Inupiat Offshore, AIO, and Shell Gulf of Mexico have entered into a binding agreement to allow AIO the option to acquire an interest in Shell's Chukchi Sea acreage and activities.

AIO said members include ASRC, Ukpeagvik Inupiat Corp., Tikigaq Corp., Olgoonik Corp., Kaktovik Inupiat Corp., Atqasuk Corp. and Nunamiut Corp., representing the communities of Barrow, Point Hope, Wainwright, Kaktovik, Atqasuk and Anaktuvuk Pass.

AIO said in a statement released earlier today that through the option agreement Shell would assign AIO an overriding royalty interest in oil and gas produced from specific Chukchi Sea leases, and AIO would have the option to participate in project activities by acquiring a working interest at the time Shell makes the decision to proceed with development and production.

- KRISTEN NELSON