Offshore staff
(US, GoM) - The Central Gulf of Mexico Lease Sale 198 drew 588,309,791 in high bids from 82 companies for oil and natural gas leases in the Federal waters of the GoM. The total of all bids was $978,310,887. This represents a 38% increase over last years Central Gulf Sale.
In Sale 198, conducted in New Orleans, the MMS received 707 bids on 405 tracts. Johnnie Burton, director of the MMS, says, "The Department is committed to working with all interested parties to enhance energy development in an environmentally responsible manner in available areas of the Gulf."
In this sale, 4,040 blocks comprising approximately 21.3 million acres offshore Alabama, Louisiana, and Mississippi were offered.
While interest in deepwater production continues, the large number of tracts receiving bids in shallow water is of particular note, indicating industry interest in deep gas in shallow waters, as well as deepwater oil and gas production, according to the agency.
Amerada Hess Corp. submitted the highest bid on Green Canyon block 287 for $42,789,994. Newfield Exploration Co. and Anadarko Petroleum Corp. submitted the second highest bid on Green Canyon block 551 for $33,989,760.
Each of the high bids on a block will go through an evaluation process to ensure the public receives fair market value before a lease is awarded, says the MMS.
03/16/06
