Central Gulf Sale 235 Attracts $539M in High Bids

Bidding levels for the Department of the Interior’s Bureau of Ocean Energy Management (BOEM) Central Gulf of Mexico Lease Sale 235 were lower than for BOEM’s previous central Gulf Lease Sale, but BOEM officials say Wednesday’s results show steady, continued interest in U.S. Gulf leasing.

Central Gulf of Mexico Lease Sale 235 attracted $538.7 million in high bids and $583.2 million in total bids, down from the $850.8 million in high bids and $1.09 billion in total bids seen in central Gulf Lease Sale 231 in March 2014.

BOEM offered 7,788 unleased blocks covering 41.2 million acres Wednesday, located from 3 to 230 nautical miles offshore in nine feet to over 11,115 feet of water offshore Louisiana, Mississippi and Alabama.  

Forty-two companies submitted 195 bids on 169 tracts, covering approximately 923,700 acres. Deepwater blocks were a focus of bidding, with 64 blocks in more than 5,249 feet of water receiving bids. The deepest block receiving a bid, Lloyd Ridge Block 454, lies in 9,901 feet of water.

Green Canyon Block 364 received the greatest number of bids in the lease sale, followed by Green Canyon 804 and Atwater Valley Block 153.

Houston Energy LP and Red Willow Offshore LLC made the highest bid in the lease sale with their $52.2 million offer for Walker Ridge Block 107. The offer also made it the highest bid per acre of the sale with $9,066/acre.

Shell Offshore Inc., Statoil Gulf of Mexico LLC, Venari Offshore LLC, Chevron U.S.A. Inc., and Exxon Mobil Corp. were the top five bidders in the lease sale, with respective bids of 17, 14, 12, 11, and 11. Chevron, Red Willow Offshore, ExxonMobil, Statoil and PXP Offshore LLC were the top five bidders in terms of high bids.


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Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com


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