ExxonMobil in Point Thomson move

ExxonMobil has filed a legal appeal challenging Alaska's decision to start revoking leases for the Point Thomson gas field on the North Slope.

The appeal, filed last week to the Alaska Superior Court in Anchorage, claims the Alaska Department of Natural Resources made unreasonable demands on ExxonMobil and its partners to develop the technically challenging Point Thomson field, just west of the Arctic National Wildlife Refuge.

The appeal seeks to have the court ensure that the companies keep their leases at Point Thomson, even though field development is not imminent and the last well was drilled 23 years ago.

According to the appeal, should the companies lose the leases the state will be obligated to repay the "substantial sums" spent in the past on acquiring, drilling and developing the field, plus potential lost profits.

Point Thomson, discovered in 1977, holds between 8 trillion and 9 trillion cubic feet of natural gas, as well as about 300 million barrels of condensate and oil, the Alaska Department of Natural Resources said.

The 116,607-acre unit that was formed to consolidate Point Thomson-area holdings includes leases that date back to the 1960s.

ExxonMobil is the unit operator. BP, Chevron and ConocoPhillips hold minority shares. Development has been stymied in part because of high-pressure conditions in the reservoir, said the companies.