Homer Alaska - Business

Story last updated at 8:33 PM on Wednesday, June 8, 2011

Pact to bring jack-up rig to inlet finalized



Morris News Service — Alaska

The Alaska Industrial Development and Export Authority finalized its agreement Monday with Buccaneer Energy Limited and Ezion Holdings Limited to bring a jack-up rig to Cook Inlet.

The Joint Ownership Agreement between the three entities details the terms of AIDEA's financial contribution to the rig Buccaneer has been working to bring north. AIDEA will invest up to $30 million in the effort.

Before the rig is loaded and shipped over from Singapore, the three still must finalize the Conditions Precedent. According to the announcement, that is expected to happen this month. If everything goes as planned, drilling could begin at the end of the 2011 open-water season, or the beginning of the 2012 season.

The rig, known as the Adriatic XI, will be used for oil and gas exploration and development in the Cook Inlet and other Alaska waters. AIDEA's contribution means that it is likely to stay in Alaska for a longer period of time.

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