This is the first time a company other than Hilcorp Alaska has won leases in a state sale since 2015.
It’s not John Hendrix’s first foray into Cook Inlet energy, he was general manager of Apache Corp.’s operations there.
Settlement comes after Furie Alaska violated the Jones Act in 2011.
“Companies are looking to make investments, they need some degree of certainty, and there is nothing but uncertainty right now in the Alaska oil and gas industry,” an AOGA representative said.
Lawmakers designated Kachemak Bay a critical habitat area in 1974, which was incompatible with Homer Port and Harbor activity. The port director says normal operations technically violated the area’s environmental protections.
As Alaska continues to grapple with a major budget shortfall, one line item promises to be particularly controversial: tax credits for oil and gas producers.