Alaskan Deputy Revenue Commissioner Marty Rutherford said Thursday the state would accept a request from ExxonMobil for reconsideration of an earlier decision to reject a proposed gas recycling and condensate production project at the Point Thomson field east of Prudhoe Bay
Alaskan Deputy Revenue Commissioner Marty Rutherford said Thursday the state would accept a request from ExxonMobil for reconsideration of an earlier decision to reject a proposed gas recycling and condensate production project at the Point Thomson field east of Prudhoe Bay.
Speaking on the sidelines of a briefing by state Governor Sarah Palin, Rutherford would not speculate on what the state's final decision would be, but the decision to at least review the issue could indicate a willingness to settle a long-standing work obligations dispute between the state, the oil major and its partners over Point Thomson development.
The state had moved to cancel the partners' Point Thomson lease in 2006, but was instructed in December by a judge to go back to the negotiating table. The state claims the partners reneged on drilling and other work commitments.
In February, ExxonMobil submitted a proposal for a $1.2 billion gas recycling and condensate production project as a proposed solution to the dispute. In April, Alaska has rejected the proposal.
Point Thomson has an estimated 8 Tcf of gas and 200 million barrels of condensate.
Earlier this month, ExxonMobil filed what it described as a "precautionary" claim, on behalf of itself and its partners, against the state for $800 million they say they have spent to explore and development the North Slope natural gas and condensate field.
BP, Chevron and ConocoPhillips are the other major Point Thomson leaseowners.
