Firms submit $191 million in high bids in Lease Sale 257

The US Bureau of Ocean Energy Management reported that its region-wide Gulf of Mexico Lease Sale 257 received 317 bids from 33 companies on 308 of the 15,148 blocks offered, resulting in a total of $191.7 million in high bids. The sale was held Nov. 17 in New Orleans.

The most sought-after acreage during this most recent sale was in the shallow water, as blocks in 0-200 m of water received 136 bids. Deepwater blocks in 800-1,600 m of water received the largest sum of high bids with $99 million. The deepest block receiving a bid was Lloyd Ridge 457 at 3,063 m.

Chevron USA Inc. submitted the largest sum of high bids with a total of $47 million for 34 bids. Anadarko US Offshore LLC came in second with 30 total apparent high bids worth $39 million.

Based on the greatest number of high bids submitted, Exxon Mobil Corp. was at the top of the list with 94 total high bids totaling $14.9 million. BP Exploration & Production Inc. placed second on that list with 46 apparent high bids for a total of $29 million. Chevron USA Inc. came in third with $47 million for 34 total high bids.

The highest bid on a block came from Anadarko US Offshore LLC. The company bid $10 million for Alaminos Canyon Block 259 in water depths of 800-1,600 m.

Offering $6 million for Green Canyon Block 551, Anadarko US Offshore LLC also submitted the second-highest single bid of the sale. Chevron USA Inc. was among the top-ranked companies submitting single-highest bids, with a bid of $4.4 million for Mississippi Canyon Block 40.

Lease Sale 257 comprised about 15,148 unleased blocks in the Gulf’s western, central, and eastern planning areas in a range of 3-231 miles offshore in 9-11,115 ft of water.

This was the eight offshore sale in the Department of Energy’s Outer Continental Shelf 2017-22 program, which plans a total of 10 sales.

The Gulf of Mexico OCS, covering about 160 million acres, is estimated to contain about 48 billion bbl of undiscovered technically recoverable oil and 141 tcf of undiscovered technically recoverable gas.

BOEM will include lease stipulations to protect biologically sensitive resources, mitigate potential adverse effects on protected species, and avoid potential conflicts between oil and gas development and other activities and users in the Gulf of Mexico.

Fiscal terms include a 12.5% royalty rate for leases in less than 200 m of water depth and a royalty rate of 18.75% for all other leases issued pursuant to the sale.