* Record NPR-A auction attracted highest-ever winning
bids
* Repsol-Shell JV dominated sale, spending nearly $94 mln
* Other top bidders included ExxonMobil ( XOM ), ConocoPhillips ( COP )
(Updates with details of final sale results, adds company
comments in paragraphs 8, 10 and 12)
By Nichola Groom
March 18 (Reuters) - The U.S. government on Wednesday
held its most successful sale ever of oil and gas drilling
rights in Alaska's National Petroleum Reserve, attracting $163
million in winning bids from industry players including Repsol
, Shell, ConocoPhillips ( COP ) and ExxonMobil ( XOM )
.
The record auction revealed pent-up demand among drillers
for acreage in the reserve, more than six years after the last
federal oil and gas auction there. Though it has significant
development potential, interest in the region has waned in
recent years due to the high cost of drilling in the remote area
and risks from environmental litigation.
The sale was the first of at least five mandated by
President Donald Trump's tax cut and spending bill, which he
signed into law last year. His administration has sought to
expand domestic oil and gas production and reverse Biden-era
restrictions on drilling in the Alaska reserve.
"The results of today's sale are historic," Bureau of Land
Management Alaska State Director Kevin Pendergast said after
announcing the preliminary results of the livestreamed auction.
"It makes clear that for the NPR-A, despite all the successes to
date, the best days are still ahead."
The Interior Department's Bureau of Land Management received
430 bids on 187 of the 625 tracts offered, according to a sale
summary published on its website.
The industry bid on 1.3 million acres of the 5.5 million
acres (2.2 million hectares) offered.
A Repsol and Shell joint venture was the top spender at the
auction, bidding a total of nearly $94 million for 42 tracts.
"This reinforces Repsol's long-term commitment to energy
development in the United States and Alaska, further
strengthening its position and future upside in the state," a
spokesperson said via email. This is Repsol's first time
partnering with Shell in Alaska.
Other notable winners included ConocoPhillips, ExxonMobil
and North Slope Exploration LLC.
"We appreciate the Trump Administration's efforts to advance
America's energy potential by recognizing the strategic
importance of responsible resource development in Alaska," a
ConocoPhillips ( COP ) spokesperson said by email. The company's winning
bids totaled more than $21 million for 30 tracts.
ExxonMobil ( XOM ) said it was pleased to be the winner of 138,000
acres at the sale.
"This marks an important step in our continued commitment to
responsible energy development in Alaska and the U.S.," a
spokesperson said in an email.
The highest single bid was $3.65 million by Epoch Oil & Gas
LLC for a 12,800-acre tract.
Epoch and North Slope Exploration could not immediately be
reached for comment.
The NPR-A, as the 23-million-acre reserve is known, was
designated for oil and gas exploration in the 1970s to address
energy shortages. It is estimated to hold 8.7 billion barrels of
recoverable oil and 25 trillion cubic feet (708 billion cubic
meters) of recoverable natural gas.
The last NPR-A lease sale in 2019 attracted $11.3 million in
bids on 1.05 million acres.
Alaska state officials and some native groups support oil
and gas drilling because it contributes to tax revenue and
creates jobs. Environmentalists argue oil and gas development
destroys habitats for species such as polar bears and caribou.