MMS: US Central Gulf Lease Sale Bids Total $703 Million
March 18 2009 - 2:23PM
Dow Jones News
U.S. Interior Secretary Ken Salazar said the Central Gulf of
Mexico Oil and Gas Lease Sale 208, held Wednesday in New Orleans,
attracted more than $703 million in high bids.
The sale was conducted by Interior's Minerals Management
Service, or MMS, and had 70 companies submitting 476 bids on 348
tracts comprising over 1.9 million acres offshore Louisiana,
Mississippi and Alabama.
"The responsible energy development resulting from today's sale
will be a part of our nation's comprehensive energy plan," said
Salazar, who was speaking to reporters after the sale.
The highest bid received on a tract was $65.6 million submitted
by Shell Gulf of Mexico Inc., a unit of Royal Dutch Shell (RDSA),
for Mississippi Canyon, Block 721. Shell was also the company that
offered the highest amount of money, totaling more than $153
million. It was followed by BP PLC (BP) offering more than $77
million, Marathon Oil Corp. (MRO) with more than $62 million and
Nobel Energy Inc. (NBL) with more than $55 million.
The total amount of money that MMS would collect from this
Central Gulf Lease sale is lower than last year, which attracted 78
companies and collected a record $3.7 billion, amid booming prices
for oil and gas.
MMS officials said the main reason why the sale attracted fewer
companies and less money was because some of the prospects are less
attractive for oil companies and are mainly in shallow waters.
Official said that one surprise from the sale was to see major oil
companies coming back to bid for blocks in Gulf of Mexico shale, a
sign of their interest in produce natural gas.
-By Isabel Ordonez, Dow Jones Newswires; 713-314-6090;
isabel.ordonez@dowjones.com