State looks for interest in royalty oil

Petroleum News

The Alaska Department of Natural Resources' Division of Oil and Gas has published a non-binding solicitation of interest for the state's in-kind supply of North Slope royalty oil. The Aug. 2 solicitation, signed by division Director Derek Nottingham, requests written responses by Sept. 5.

The state's current RIK supply contract obligations end in the third quarter of 2025.

The division is looking for expressions of interest in volumes of RIK oil that may become available when existing contracts end or any additional volumes of North Slope royalty oil the state chooses to take as RIK and said if it receives multiple expressions of interest it may conduct a sealed-bid auction.

A sealed bid auction may involve 'fixed or variable' lots, a minimum of 3,000 barrels per day with the potential amount available 40,000 bpd per year; amounts could potentially vary year by year.

Details are available on the division's website at: https://dog.dnr.alaska.gov/Newsroom.

'Petroleum News