Gulf of Mexico Lease Sale 253 yields more than $159 million in high bids

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Offshore staff

WASHINGTON, D.C. Lease Sale 253 generated $159,386,761 in high bids for 151 blocks covering 835,006 acres (1,305 sq mi) in federal waters of the Gulf of Mexico, according to the Bureau of Ocean Energy Management.

Twenty-seven companies submitted 165 bids that totaled $174,922,200.

Equinor Gulf of Mexico LLC submitted 23 high bids totaling $16,810,848.

BP Exploration & Production Inc. submitted 21 high bids totaling $14,685,972.

BHP Billiton Petroleum (Deepwater) Inc. submitted 20 high bids totaling $41,849,104. Its and the sale’s highest bid, $22,510,319, was for Green Canyon block 124.

Chevron U.S.A. Inc. submitted 17 high bids totaling $22,598,421. Its highest bid, $6,710,012, was for Mississippi Canyon block 937. The company had three of the top 10 single highest bids.

Anadarko US Offshore LLC submitted 14 high bids totaling $23,403,070. Its highest bid, $4,201,505, was for Keathley Canyon block 779. The company had three of the top 10 single highest bids.

Juneau Oil & Gas, LLC submitted nine high bids totaling $1,680,993.

Shell Offshore Inc. submitted seven high bids totaling $11,367,028. Its highest bid, $5,601,004, was for Alaminos Canyon block 341. This was the sale’s third highest bid.

Hess Corp. submitted six high bids totaling $8,304,934. Its highest bid, $3,101,989, was for Mississippi Canyon block 727. The company had two of the top 10 single highest bids.

EnVen Energy Ventures, LLC submitted five high bids totaling $2,945,000.

TOTAL E&P USA, INC. submitted four high bids $4,944,828.

Walter Oil & Gas Corp. submitted four high bids totaling $650,876.

Kosmos Energy Gulf of Mexico Operations LLC submitted four high bids totaling $2,135,148.

LLOG Exploration Offshore, L.L.C. submitted three high bids totaling $1,547,296.

Fieldwood Energy LLC submitted three high bids totaling $1,771,000.

W & T Offshore, Inc. submitted two high bids totaling $277,000.

Houston Energy, L.P. submitted two high bids totaling $182,274.75.

Arena Energy, LP submitted two high bids totaling $378,250.

Red Willow Offshore, LLC submitted two high bids totaling $182,274.75.

Repsol E&P USA Inc. submitted two high bids totaling $803,949.

Renaissance Offshore, LLC submitted two high bids totaling $160,168.

Talos Energy Offshore LLC submitted two high bids totaling $1,605,198.

Ridgewood Energy Corp. submitted one high bid totaling $302,209.

Murphy Exploration & Production Co. submitted one high bid totaling $302,209.

Focus Exploration, LLC submitted one high bid totaling $71,711.

Talos Resources LLC submitted one high bid totaling $301,299.50.

GOME 1271 LLC submitted one high bid totaling $63,250.

Cantium, LLC submitted one high bid totaling $62,450.

Lease Sale 253 included 14,585 unleased blocks, located from 3 to 231 mi (5 to 372 km) offshore, in the Gulf of Mexico’s Western, Central and Eastern Planning Areas in water depths ranging from 9 to more than 11,115 ft (3 to 3,400 m).

Livestreamed from New Orleans, this was the fifth offshore sale held under the 2017-2022 National Outer Continental Shelf Oil and Gas Leasing Program.

Nicolette Nye, National Ocean Industries Association Vice President of Communications and Member Development, said: “The somewhat modest results of Lease Sale 253 reflect the cautiously optimistic attitude of an offshore industry still in recovery. While companies have improved the efficiency of their operations and rig rates and supply chain prices are more competitive, oil prices remain flat.

Bidding activity today may reflect the slower than desired improvement in prices. There is also uncertainty surrounding pending regulatory actions such as financial assurance and fair market valuation.  

08/21/2019

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