ANCHORAGE, Alaska - At least three oil companies have expressed interest in taking over Exxon Mobil Corp's long-languishing leases at its Point Thomson oil field in Alaska, if the state succeeds in taking them away from the world's largest oil company.
Alaska is fighting a legal battle to yank the properties from Exxon and its partners for allegedly violating the terms of the leases by not developing the field's estimated hundreds of millions of barrels of oil and 8 trillion to 9 trillion cubic feet of natural gas.
Three companies have told state officials they would like to buy and develop the leases, after the state formally takes back the properties, said Marty Rutherford, deputy commissioner of the Alaska Department of Natural Resources.
"There are three major companies that have been very interested. Two of them have been very aggressive about wanting to talk to the state," she told Reuters Thursday. "The bottom line is the state law doesn't allow people to warehouse our leases with no activity."
She declined to name the companies but said they have promised to develop more rapidly than Exxon has. "They're very clear that they would be much better partners in that unit, that ex-unit, as they put it," she said.
Alaska legislators have speculated that Shell Oil was among the companies interested in the leases.
Exxon and its partners -- BP Plc, Chevron Corp and ConocoPhillips -- have not drilled on the Point Thomson leases since 1982, but maintain that they have met their commitments and have turned to the Alaska court system to fight for their leases.
Exxon has also said it is determined to embark on an aggressive development program this winter, including construction of an ice road, an airstrip and the drilling of multiple wells and the imminent hiring of Alaska-based contractors.
Craig Haymes, Alaska production manager for Exxon Mobil, said the company's winter plans were part of a $1.3 billion development plan to which the partners have committed that will produce at least 10,000 barrels a day of liquids by 2014.
"We have a lot of incentive to produce hydrocarbons. All around the world, wherever I've worked, that is what is in our lifeblood, is to get as much oil and gas out of the ground as we can. And Point Thomson is no different," he told lawmakers at a recent hearing.
If the leases are revoked from Exxon, Rutherford said, the state will be ready to put the leases back on the auction block, likely under special terms detailing development and production commitments.
The process of revoking the leases could take more than two years, she said.
State Rep. Les Gara, an Anchorage Democrat, said Exxon and its partners have run out of chances at the field, and that it is time for someone else to work there.
"Exxon violated its contract with the state over 20 times in the last 20 years. You only give criminals three chances. I don't think Exxon's entitled to 22 or 23," Gara said.
Alaska is fighting a legal battle to yank the properties from Exxon and its partners for allegedly violating the terms of the leases by not developing the field's estimated hundreds of millions of barrels of oil and 8 trillion to 9 trillion cubic feet of natural gas.
Three companies have told state officials they would like to buy and develop the leases, after the state formally takes back the properties, said Marty Rutherford, deputy commissioner of the Alaska Department of Natural Resources.
"There are three major companies that have been very interested. Two of them have been very aggressive about wanting to talk to the state," she told Reuters Thursday. "The bottom line is the state law doesn't allow people to warehouse our leases with no activity."
She declined to name the companies but said they have promised to develop more rapidly than Exxon has. "They're very clear that they would be much better partners in that unit, that ex-unit, as they put it," she said.
Alaska legislators have speculated that Shell Oil was among the companies interested in the leases.
Exxon and its partners -- BP Plc, Chevron Corp and ConocoPhillips -- have not drilled on the Point Thomson leases since 1982, but maintain that they have met their commitments and have turned to the Alaska court system to fight for their leases.
Exxon has also said it is determined to embark on an aggressive development program this winter, including construction of an ice road, an airstrip and the drilling of multiple wells and the imminent hiring of Alaska-based contractors.
Craig Haymes, Alaska production manager for Exxon Mobil, said the company's winter plans were part of a $1.3 billion development plan to which the partners have committed that will produce at least 10,000 barrels a day of liquids by 2014.
"We have a lot of incentive to produce hydrocarbons. All around the world, wherever I've worked, that is what is in our lifeblood, is to get as much oil and gas out of the ground as we can. And Point Thomson is no different," he told lawmakers at a recent hearing.
If the leases are revoked from Exxon, Rutherford said, the state will be ready to put the leases back on the auction block, likely under special terms detailing development and production commitments.
The process of revoking the leases could take more than two years, she said.
State Rep. Les Gara, an Anchorage Democrat, said Exxon and its partners have run out of chances at the field, and that it is time for someone else to work there.
"Exxon violated its contract with the state over 20 times in the last 20 years. You only give criminals three chances. I don't think Exxon's entitled to 22 or 23," Gara said.
