Central Gulf of Mexico Sale 198 Nets $581,820,861 in High Bids

Green Canyon Block 287
(Click to Enlarge)

Central Gulf of Mexico - Lease Sale 198
(Click to Enlarge)
The Minerals Management Service (MMS) has accepted high bids valued at $581,820,861 and awarded 392 leases to the successful high bidders who participated in Oil and Gas Lease Sale 198. Funds from the total high bids will be distributed to the general fund of the U. S. Treasury, shared with the affected States, and set aside for special uses that benefit all fifty states.

The leases were awarded following the completion of an extensive, two-phase bid evaluation process to ensure that the Federal government receives a fair monetary return for the public mineral resources it makes available.

Lease Sale 198, held March 15, 2006, attracted 82 companies submitting 707 bids totaling $978,310,887 on 405 tracts. Of those 405 tracts receiving $588,309,791 in high bids, MMS rejected 12 high bids totaling $6,274,930 as insufficient for fair market value. MMS accepted the high bids on 392 tracts for an amount of $581,820,861. Green Canyon Block 215 received an invalid high bid and was rejected in accordance with MMS regulations.

The highest bid accepted on a tract was $42,789,994, made by Amerada Hess Corporation for Green Canyon Block 287. This tract is in deep water (800-1,600m) and received 8 bids. The second highest accepted bid is $33,989,760 on Green Canyon Block 551 by Anadarko Petroleum Corporation and Newfield Exploration Company, and is also in deep water (800-1,600m). The third highest accepted bid is $26,601,201 on Green Canyon Block 452 by Woodside Energy (USA) Inc. in deep water (800-1,600m).

"Sale 198 indicates the continued strong interest of major and independent oil and gas companies in the Gulf," noted Gulf of Mexico Acting Regional Director Chuck Schoennagel. "The results of the sale also indicate a continuing interest in shallow-water areas, with 47 percent of the tracts receiving bids in less than 200 meters of water and 53 percent of the tracts receiving bids in greater than 200 meters of water."

The top five companies with the highest number of accepted high bids for Sale 198 are the following:

Company Num. Accepted High Bids Sum Accepted High Bids
BP Exploration & Production Inc. 72 $22,006,273
BHP Billiton Petroleum (Deepwater) Inc. 26 $ 7,661,284
Hunt Oil Company 23 $10,943,280
Dominion Exploration & Production, Inc. 16 $41,417,099
Hydro Gulf of Mexico, L. L. C. 14 $20,117,740

The top five companies with the highest total bonus accepted are the following:

Company Num. Accepted High Bids Sum Accepted High Bids
Hess Corporation 13 $62,593,922
Woodside Energy (USA) Inc. 12 $47,162,990
Dominion Exploration & Production, Inc. 16 $41,417,099
Newfield Exploration Company 6 $32,208,909
Samson Offshore Company 10 $27,109,326
Related Companies
 Company: BHP Billitonmore info

 - GTI, BHP Billiton Partner on Permian Fracturing Test (Oct 26)
 - BLOG: Challenging Attitudes toward Sexuality in Oil, Gas (Oct 25)
 - BHP Chairman Steps Down After Samarco Delayed Retirement (Oct 20)
 Company: BP plcmore info

 - BP Greenlights $9B Mad Dog Platform Design (Dec 1)
 - Australia Watchdog Says North West Shelf Gas Venture Underpaying Royalties (Nov 28)
 - BP Buys Interests in 2 North Sea Prospects (Nov 28)
 Company: Dominion Exploration and Productionmore info
 - Dominion Hub III Project Seeking Binding Precedent (Jan 8)
 - 2007 Mr. Spindletop Retires: Dominion Bids Farewell to Radtke (Jan 4)
 - Dominion Closes Sale on its E&P Mid-Continent Properties (Aug 31)
 Company: Minerals Management Service (MMS)more info
 - Obama Names New Head of MMS (Jun 15)
 - Abbey Implements New Drilling Requirements (Jun 7)
 - MMS Chief Resigns (May 27)
 Company: Newfield Exploration Companymore info
 - Newfield CEO Sees Cautious Approach on Big Oklahoma Oil Find (Oct 17)
 - E&P Companies Target Potential of STACK, SCOOP Plays (Aug 25)
 - Lost Generation Of Oil Workers Leaves Few Options For Next Boom (Jul 7)
 Company: Woodsidemore info

 - Subsea 7 Secures Services Contract with Woodside Energy (Dec 2)
 - Australia Watchdog Says North West Shelf Gas Venture Underpaying Royalties (Nov 28)
 - Woodside: Oil, Gas Deal Environment Has Improved Over Past Year (Oct 20)
 Company: Hess Corporationmore info

 - Oil Producer Hess Reports Smaller-Than-Expected Loss (Oct 26)
 - Oil, Gas Companies Evacuate GOM Staff Ahead of Tropical Depression (Aug 30)
 - Malaysia's Perisai Gets 6 Months Charter Extension for FPSO Perisai Kamelia (Aug 22)
 Company: Hunt Oilmore info
 - Hunt Oil Company Says It Will Cut 10% Of Its Workforce (Apr 7)
 - Pluspetrol to Invest $500M in Peru Natgas Block (Aug 4)
 - KNOC Subsidiary Gathers Canadian Assets From Hunt (Dec 15)
 Company: Samson Offshore more info
 - Anadarko Strikes Oil at Samurai Prospect in Gulf of Mexico (Jun 24)
 - Chevron Hits It Big, Spies Oil at Buckskin in Deepwater GOM (Feb 5)
 - BP Finds Oil at GOM's Deepwater Freedom Prospect (Oct 14)
For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit www.riglogix.com.

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
SharePoint Project Manager
Expertise: IT - Programming & Database|Project Management
Location: Houston, TX
Commercial Director - Terminals
Expertise: Business Development
Location: South Carolina, 
Asset Integrity Manager
Expertise: Asset Management|Project Management|QA / QC / Inspection
Location: Pasadena
search for more jobs

Brent Crude Oil : $54.46/BBL 0.96%
Light Crude Oil : $51.68/BBL 1.21%
Natural Gas : $3.44/MMBtu 1.99%
Updated in last 24 hours