OilVoice - Offshore Lease Sale in Gulf Generates $115 Million

Offshore Lease Sale in Gulf Generates $115 Million

Wednesday, August 19, 2009

A sale of federal oil and natural gas leases for the Western Gulf of Mexico attracted $115,466,321 in high bids today, following yesterday’s $1.1 million sale of onshore energy leases in Utah, Secretary of the Interior Ken Salazar announced. To date this year, the department has offered 55 million acres of U.S. public land – onshore and offshore – for oil and gas development, generating more than $875 million in revenues.

“The responsible development of oil and gas resources on U.S. public lands is an integral part of President Obama’s comprehensive energy strategy for the nation,” Secretary Salazar said. “A domestic energy plan that balances the development of conventional and renewable energy resources – both onshore and offshore – is essential to reducing our country’s dependence on foreign oil, building a clean-energy economy, and addressing the challenges of climate change.”

Western Gulf of Mexico Oil and Gas Lease Sale 210, held in New Orleans by Interior’s Minerals Management Service, received 189 bids on 162 federal Outer Continental Shelf tracts from 27 companies. The sum of all bids received totaled $145,186,365.00. The highest bid received on a tract was $28,133,843 for Keathley Canyon, Block 96 submitted by BP Exploration & Production Inc. The high bid for each block will go through a strict evaluation process to ensure the public receives fair market value before a lease is awarded.

Interior’s Minerals Management Service has held two offshore lease sales this year. Central Gulf of Mexico Lease Sale 208 on March 18 offered 6,458 parcels, encompassing 34.5 million acres; leased 1,784,242 of those acres in 328 parcels; and collected revenue of $690,163,194.40. Today’s Western Gulf of Mexico Lease Sale 210 offered 3,435 parcels, encompassing 18.4 million acres, and generated $115 million in revenue.

Top Ten Companies (Total Number of High Bids Submitted) and Sum of High Bids

BP Exploration & Production Inc. (37) $50,634,191
Chevron U.S.A. Inc. (26) $9,075,343
ConocoPhillips Company (22) $15,172,500
Exxon Mobil Corporation (17) $8,587,021
Focus Exploration, LLC (15) $4,732,858
Anadarko E&P Company LP (5) $4,367,544
Entek USA General LLC (5) $755,050
Petrobras America Inc. (4) $10,000,000
Byron Energy Inc. (4) $916,800
Castex Offshore, Inc. (1) $1,912,000

Western Gulf of Mexico Sale 210 statistics are posted on the MMS website

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