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Shell, Alaska Natives to share in offshore profits

ANCHORAGE, Alaska (AP) – An Alaska Native regional corporation and six Native Village corporations have signed an agreement with a Shell Oil subsidiary to share the profits from offshore drilling off Alaska’s northern coast. Shell and the Arctic Slope Regional Corp. announced the formation of a new company Thursday called Arctic Inupiat Offshore LLC. Its […]

Shell, Alaska Natives to share in offshore profits

ANCHORAGE, Alaska (AP) – An Alaska Native regional corporation and six Native Village corporations have signed an agreement with a Shell Oil subsidiary to share the profits from offshore drilling off Alaska’s northern coast.

Shell and the Arctic Slope Regional Corp. announced the formation of a new company Thursday called Arctic Inupiat Offshore LLC. Its participants include the village corporations on the North Slope.

The agreement with the Shell subsidiary, Shell Gulf of Mexico Inc., allows the Alaska Native company to acquire an overriding royalty interest from Shell’s drilling on leases in the Chukchi Sea.

Shell will get the benefit of local knowledge for its drilling operations.

Arctic Slope President Rex Rock will also lead the new cooperative. He says the agreement allows the corporations to balance the risks and benefits of offshore drilling.

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Written by Colin Jeffery

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