Killajoules

Royal Dutch Shell Alaska drilling update
Royal Dutch Shell (“Shell”) is engaged in a multi-year drilling programme to explore for new oil & gas resources in high-potential blocks in offshore Alaska. Important progress has been made with this programme, with two drill ships, more than twenty support vessels, an approved capping stack, and other redundant oil spill response equipment already in position. Shell continues to demonstrate the strength and extent of its Arctic preparations.

Shell Receives Final Incidental Harassment Authorizations
On May 2, 2012, NMFS awarded Shell final IHA’s for its planned 2012 exploration programs in the Beaufort and Chukchi Seas.

Marathon Oil Announces Sale of Alaska Assets
Marathon Oil Corporation (NYSE: MRO) announced today that it has entered into a definitive agreement with Hilcorp Alaska LLC, under which Hilcorp will purchase substantially all of Marathon Oil's Alaska assets. The companies expect to close the transaction, subject to completion of the necessary Government and regulatory approvals, by this fall.

USGS Releases First Shale-Oil and Shale-Gas Resource Potential Assessment for the Alaska North Slope
For the first time, the U.S. Geological Survey has estimated the potential of undiscovered, technically recoverable onshore shale oil and gas resources in Alaska’s North Slope. The estimates range from 0 up to 2 billion barrels of oil and from 0 up to 80 trillion cubic feet of gas – representing technically recoverable oil and gas resources, which are those quantities of oil and gas producible using currently available technology and industry practices, regardless of economic or accessibility considerations.

BOEM Issues Conditional Approval for Shell 2012 Chukchi Sea Exploration Plan
The Bureau of Ocean Energy Management (BOEM) today issued conditional approval of Shell Gulf of Mexico, Inc.’s revised Exploration Plan under leases in the Chukchi Sea Planning Area. In its Exploration Plan, Shell proposes drilling up to six exploration wells in Alaska’s Chukchi Sea beginning in the 2012 drilling season. This decision follows the bureau’s completion of a site-specific Environmental Assessment that examined the potential environmental effects of the plan. The conditions of approval require Shell to comply with a range of important safety and environmental protection measures.

EPA issues final air quality permits to Shell for Arctic oil and gas exploration
Today, EPA Region 10 issued final air quality permits to Shell for oil and gas exploration drilling in the Alaska Arctic. The permits will allow Shell to operate the Discoverer drillship and a support fleet of icebreakers, oil spill response vessels, and supply ships for up to 120 days each year in the Chukchi Sea and Beaufort Sea Outer Continental Shelf starting in 2012.

GVEA partners with Flint Hills to bring North Slope gas to the Interior
Golden Valley Electric Association and Flint Hills Resources Alaska have commenced engineering on a natural gas liquefaction facility on Alaska's North Slope. The two companies have signed a memorandum of understanding to exclusively negotiate agreements to construct and operate a facility that would enable liquefied natural gas to be trucked to the Interior by first quarter 2014.

Denali Discontinues Gas Pipeline Project
The Alaska Gas Pipeline announced today that its open season efforts have not resulted in the customer commitments necessary to continue work on its Alaska North Slope gas pipeline project, which has an overall estimated capital cost of $35 billion (2009 dollars). Denali will withdraw its Federal Energy Regulatory Commission pre-file application and, over the next few months, close out its operations.

Repsol acquires Exploration Blocks in Alaska's prolific North Slope
Repsol E&P USA Inc. ("Repsol") is pleased to announce an exploration joint venture with 70 & 148 LLC (“70”) and GMT Exploration LLC (“GMT”) on the North Slope of Alaska. Terms of the join t venture involve Repsol agreeing to a broad-reaching exploration and development program on leasehold held by 70 and GMT, with Repsol and 70 collaborating on all aspects of the program, Repsol's working interest after this transaction will be 70%.

Kenai LNG Plant to be Closed
ConocoPhillips announced yesterday that the company will cease LNG exports from the Kenai LNG Plant, and will begin mothballing the facility for any potential future use. Despite the plant receiving an additional export license that authorizes exports through March 2013, due to current market conditions ConocoPhillips has been unable to negotiate the commercial arrangements that would be necessary to allow for continued operation of the plant as an LNG export facility past April/May of this year.