No industry interest in Norton Basin

Petroleum News Alaska

The Minerals Management Service said May 3 that there is no current industry interest in its proposed North Basin oil and gas lease sale.

The agency’s first call for information for the area closed April 22.

“We didn’t expect much interest from companies at this time,” said MMS Regional Director John Goll. “This first call for information got the idea of a small focused sale out to the companies. I hope that they will consider the area and its needs and how working in Norton Sound might work into upcoming exploration plans.”

MMS said areas off Western Alaska are largely unexplored and have no infrastructure to support oil and gas exploration. The agency believes the area “may contain substantial natural gas resources” which could be used by local communities and also exported. Nome, St. Lawrence Island and Yukon Delta communities are interested in new energy sources, the agency said.

MMS said this special interest process is a first for Alaska. The call requested that industry nominate small, very specific areas where they would commit to explore.

MMS said since there was no industry interest this year, it would defer the sale for a year and reissue the call next year. Although only one round of leasing would occur in this five-year program, MMS said it would continue to issue a call during through 2007 until there is sufficient interest.