ASRC, North Slope Village Corporations and Shell Announce Historic Venture

ASRC PRESS RELEASE 7/31/2014
 
A​nchorage - - In a ground-breaking announcement today, Arctic Slope Regional Corporation (ASRC) and
six (6) North Slope village corporations have joined together to create a new company known as the
Arctic Inupiat Offshore, LLC (AIO). AIO and Shell Gulf of Mexico Inc. (Shell) have entered into a binding
agreement that will allow AIO the option to acquire an interest in Shell’s acreage and activities on its
Chukchi Sea leases. This interest will be managed by AIO.
 
AIO members include ASRC, Ukpeaġik Inupiat Corporation, Tikigaq Corporation, Olgoonik Corporation,
Kaktovik Inupiat Corporation, Atqasuk Corporation and Nunamiut Corporation. These corporations
represent the communities of Barrow, Point Hope, Wainwright, Kaktovik, Atqasuk and Anaktuvuk Pass.
Rex A. Rock, Sr., president and CEO for ASRC, will also serve as the president for AIO. He commented,
“Our region has always been a leader in strategic partnerships that provide meaningful benefits to our
shareholders, to our people.” Rock further stated, “I am humbled to acknowledge that this arrangement
balances the risk of OCS development borne by our coastal communities, with the benefits intended to
support our communities and our people.”
 
Ukpeaġik Inupiat Corporation president and CEO, Anthony E. Edwardsen will serve as Chairman of AIO.
Edwardsen remarked, “Our values teach us that we achieve success by putting the needs of our
community at the center of all that we do. It is important that our community has a seat at the table to
represent the subsistence and economic needs of our shareholders. Through AIO we will have
meaningful input into this process while providing benefits back to our shareholders.”
 
“This is an important day for our Alaska Venture,” said Shell Alaska Vice President, Pete Slaiby. “A
regional alliance with so many respected Alaska Native Corporations provides Shell the opportunity to
collaborate with savvy and experienced North Slope business partners going forward. It also
underscores our commitment to provide opportunities for North Slope communities to directly benefit
from Shell’s activities offshore Alaska.”
 
Sayers Tuzroyluk, Chairman of the Board of Tikigaq Corporation, will also serve as the secretary and
treasurer of AIO. Tuzroyluk explained, “Tikigaq borders the Arctic coastline, and we finally have a
mechanism to share in the benefits from responsible off-shore oil and gas development. The creation of
AIO opens the opportunity to do business with respect to oil and gas development.”
 
Olgoonik Corporation’s President, Steve Segevan, commented, “The community of Wainwright is at the
forefront of OCS development, and our community has taken a progressive approach in support of
responsible OCS development. AIO strengthens our approach to the OCS and provides us with a solid
seat at the table. It’s a new day, where the village corporations join together with the regional
corporation –it’s a new way of doing business on the North Slope.”
 
Phillip Tikluk, President of Kaktovik Inupiat Corporation, said “KIC and its Board of Directors believes this
opportunity, brought forth to the village Corporations across the North Slope by ASRC and Rex Rock, to
join AIO is unprecedented; it stands to bring financial stability and alignment to the village corporations
across the North Slope from responsible off-shore development."
 
“Formation of AIO provides for unity amongst our corporations which makes us stronger in time of new
changes. This agreement allows us to be better prepared for the unknown that's coming to us in the
near future and we must stand united in our respective communities, including the whole North Slope,”
said Margaret Ahngasuk, President of Atqasuk Corporation.
 
Patrick Mekiana, President of Nunamiut Corporation, said, “This partnership creates alignment with
most of the North Slope villages. Through AIO, even Nunamiut shareholders and the inland community
of Anaktuvuk Pass will benefit from responsible OCS development. We are happy to be included in this
opportunity because we are all one people and related across the North Slope region.”
 
Through this option agreement, Shell would assign to AIO an overriding royalty interest in oil and gas
produced from specific Chukchi Sea leases. In addition, AIO would have the option to participate in
project activities by acquiring a working interest at the time Shell makes the decision to proceed with
development and production.
 
Shell and AIO will hold quarterly meetings to exchange information and address regional and
development issues.
 
Arctic Iñupiaq Offshore, LLC - 3900 C Street, Suite 1003, Anchorage, AK 99503 - (907) 334-0600

About ASRC

Arctic Slope Regional Corporation is owned by and represents the business interests of the Arctic Slope Iñupiat. Since opening enrollment in 1989 to Alaska Natives born after 1971, the corporation’s shareholder base has nearly tripled, growing from the 3,700 original enrollees to around 11,000 today. Corporate headquarters are based in Barrow, Alaska, with administrative and subsidiary offices located in Anchorage and throughout the United States. ASRC, along with its family of companies, is the largest Alaskan-owned company, employing approximately 10,000 people worldwide. The company has five major business segments: petroleum refining and marketing, energy support services, construction, government services and resource development.

PO BOX 129 BARROW AK 99723 (907) 852-8633