February 6, 2008, Juneau, Alaska – Governor Sarah Palin congratulated the federal Minerals Management Service on the successful lease sale where oil companies bid a record $2.66 billion today for oil and gas leases in the Chukchi Sea off Northwest Alaska. According to the U.S. Department of Interior, this represents the largest Outer Continental Shelf lease sale in the history of Alaska.

The Minerals Management Service received 667 bids for leases covering 2.8 million acres on Alaska’s outer continental shelf. Although the leases are on federal lands and are not subject to state taxes, Alaska will see economic benefit in the form of new and exciting opportunities for Alaska’s contractors and businesses. Governor Palin praised Shell, which accounted for more than three-fourths of the winning bids. Since resuming Alaska operations in 2005, the company has spent hundreds of millions of dollars on projects here.

“I especially applaud Shell for its continued commitment to responsible resource development in Alaska,” Governor Palin said. “Shell continues to play a major part in meeting the world's growing energy needs, and we are pleased this company continues to include Alaska in its plans.”

Shell, ConocoPhillips, Norwegian oil giant Statoil Hydro, Iona Energy, Repsol E&P; USA and Northern America Civil Recovery Arbitrage Corporation all bid on the leases.

The sale also attracted Italian oil company Eni, which recently announced it will invest $1.45 billion developing the Nikaitchuq oil field. Eni expects to drill 70 wells to recover 180 million barrels of oil.

According to MMS estimates, the Chukchi holds 15 billion barrels of conventionally recoverable oil and 77 trillion cubic feet of natural gas. Those numbers are roughly comparable to the North Slope oil fields in the Prudhoe Bay area.

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