ExxonMobil Corp. proposed to pay the state of Alaska $20 million and to relinquish 20,000 acres to resolve unmet obligations to develop the 106,200 acre Point Thomson Unit (PTU) gas-condensate leaseholding on Alaska’s North Slope.
ExxonMobil, which is operator, estimates PTU has reserves of more than 8 tcf of gas and 200 million bbl of condensate and oil (OGJ, Nov. 26, 2001, Newsletter). Alaska state documents say 25 lessees hold working interest in PTU, consisting of 45 state oil and gas leases.
There is no PTU production yet because lessees are still trying to determine if they can commercially produce the gas and condensate. Companies suggest such production cannot begin unless a gas pipeline will be built from the North Slope to the Lower 48.
The pipeline remains uncertain because the Alaska Legislature in special sessions repeatedly refused to approve a pipeline contract that Gov. Frank Murkowski negotiated with North Slope oil and gas producers.
The Alaska Department of Natural Resources in 2001 approved a development plan calling for PTU production by 2008. In October 2005, the DNR Division of Oil and Gas rejected ExxonMobil’s development plan, placing the company in default of its earlier agreement with the state.