Legislation expected to generate $22 million to $27 million in revenue for Alaska, via a four-year contract in which the state will sell royalty oil to Petro Star Inc., has was signed into law on Aug. 7, in Valdez, by Gov. Bill Walker.
“With the decline of oil prices and production, it takes creative, out-of-the-box thinking and teamwork to generate revenue,” said Walker. “Because jobs in Alaska should go to Alaskans, my bill (Senate Bill 30) includes a local hire provision.”
Walker thanked Petro Star and Arctic Slope Regional Corp. “for teaming up with the state so that our resources can put the maximum number of Alaskans to work.”
Petro Star Inc., an ASRC subsidiary, operates refineries at North Pole and Valdez.
Under terms of the contract, which ends on Dec. 31, 2021, the state will sell Petro star 16,400 to 20,500 barrels of royal oil a day in 2018, 13,200 to 16,500 barrels a day in 2019, 10,800 to 13,500 barrels a day in 2020, and 8,400 to 10,500 barrels a day in 2021.
The legislation not only ensures a diverse and stable crude supply for the future, but has the potential to generate tens of millions of additional dollars for the state over the next five years, said Doug Chapados, president and chief executive officer of PSI.
