By OGJ editors
HOUSTON, Mar. 10 -- Repsol E&P USA Inc. plans to invest at least $768 million over several years in an exploration joint venture on Alaska’s North Slope.
Repsol will have 70% working interest in a broad-reaching exploration and development program on leases held two private entities, “70,” an affiliate of Armstrong Oil & Gas Inc., and GMT, both of Denver. Repsol and “70” will collaborate on all aspects of the program.
The blocks cover 2,000 sq km west and southwest of supergiant Prudhoe Bay oil field and the Trans-Alaska Oil Pipeline. Repsol agreed to carry out the investment necessary to explore and evaluate the economic viability of the resources contained in the blocks.
The $768 million includes amounts to be paid to Repsol’s partners and the cost of several years worth of exploration work, which is to start next winter.
“70” and GMT are among Alaska’s largest leaseholders and have been active successful explorers on the North Slope together for the last decade. They are active on the North Slope and in Cook Inlet.
