Central Gulf of Mexico Sale Shows Continued Interest in Deepwater

BOEM completes evaluation of bids

06-27-2016

The Bureau of Ocean Energy Management (BOEM) completed its required evaluation of bids to ensure that the public receives fair market value for tracts leased as part of the Gulf of Mexico Central Planning Area Oil and Gas Lease Sale 241. The sale, held on March 23, 2016, made 8,349 unleased blocks covering 44.3 million acres offshore Louisiana, Mississippi and Alabama available for lease.

After extensive economic analysis, BOEM awarded 121 leases on tracts covering 656,257.54 acres to the successful high bidders who participated in the sale. The accepted high bids are valued at $151,126,597.

During the sale, 30 companies submitted 148 bids totaling $179,172,819 on 128 tracts. A total of $156,385,610 was received in high bids. BOEM rejected seven high bids, totaling $5,259,013, after determining that the value of those bids was insufficient to provide the public with fair market value for the tracts. BOEM will re-offer these tracts as part of the next Central Planning Area sale, which is currently scheduled for March of 2017.The highest bid accepted was $13,687,108 submitted by Chevron USA, Inc. and Venari Offshore, LLC for Mississippi Canyon block 434. The tract is in water depths of more than 7100 feet (2100 meters) and received two bids.

The terms and conditions of Sale 241 encourage diligent development, environmental protection and ensure a fair return to taxpayers. Although Sale 241 reflected current market conditions of lower oil and gas prices, the number of high bids and the number of bids in deepwater were similar to last year’s central sale, illustrating continuing industry interest in the deepwater Gulf of Mexico.

For more information on Sale 241 go to http://www.boem.gov/Sale-241/