RIK Sale's Gross Expected to Top $362 Million

More than 4.2 million barrels of Royalty in Kind (RIK) crude oil and condensate from Federal leases in the Gulf of Mexico and Pacific Ocean have been sold to six companies as part of an RIK sale, the Department of the Interior's Minerals Management Service (MMS) announced Feb. 12. The sale is expected to gross a total of more than $362 million.

The contracts awarded as part of the January sale will provide for approximately 4,264,500 barrels of crude oil, or 29,050 barrels per day over terms of the contracts. Delivery is scheduled to begin April 1, 2008, and end June 30, 2008, with the exception of one package from the Pacific Ocean that was awarded for one year.

The crude oil will convert to more than 174 million gallons of petroleum products, including gasoline, diesel fuel, heating oil, jet fuel, heavy fuel oil, and other products. Crude oil of this quality on the open market currently has an $85 per barrel price; based on that price the total sales would amount to approximately $362.5 million.

The sale was conducted as part of the MMS's Royalty in Kind Program, which allows MMS to take its royalties "in kind," in the form of product, instead of "in value," in the form of a cash payment. The MMS then competitively sells the product in the open marketplace to ensure a fair return on the public's royalty assets, improve government efficiencies, reduce regulatory costs and reporting requirements, and shorten the compliance cycle.

Those companies submitting winning bids include Chevron Products Company, ConocoPhillips, ExxonMobil Oil Corp., Sempra Trading, Shell Trading U.S. Company, and Plains Marketing, LP.

Related Companies
 Company: Exxon Mobil Corporationmore info


 - Nigeria To Mediate In Dispute Between Exxon And Labor Unions (May 24)
 - Shell Shareholders Reject Emissions Target Proposal (May 23)
 - ExxonMobil, Total Discuss Offshore Drilling Opportunities In Greece (May 19)
 Company: Shellmore info


 - No New Demand, More Supply Leaves Spot Price Languishing (May 26)
 - Woodside Sees Output Growing 15 Pct Over Next Three Years (May 23)
 - Shell Shareholders Reject Emissions Target Proposal (May 23)
 Company: ConocoPhillipsmore info


 - ConocoPhillips To Lay Off 300 In Canada After Cenovus Deal (May 4)
 - ConocoPhillips Posts Surprise Loss On Higher-Than-Expected Costs (May 2)
 - Deal Of The Month: ConocoPhillips Cuts Gas Profile in $3B San Juan Sale (Apr 28)
 Company: Chevron Corporationmore info
 - No New Demand, More Supply Leaves Spot Price Languishing (May 26)
 - South Africa Wants Sinopec to Retain Refinery Capacity (May 25)
 - Venezuela Oil Executive Arrested in Corruption Probe (May 23)
 Company: Sempra Energymore info
 - TransCanada Wins Mexico Pipeline Auction as Sempra Disqualified (Apr 8)
 - US Approves Exports From Sempra's Cameron LNG Terminal (Feb 11)
 - El Paso to Sell Mexican Pipeline Assets (Feb 24)
 Company: Plains Marketingmore info
 - RIK Sale's Gross Expected to Top $362 Million (Feb 12)
 - RIK Program to Help Fill Strategic Petroleum Reserve (May 31)
 - Six Companies Win RIK Crude Oil Contracts (Nov 27)
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


From the Career Center
Jobs that may interest you
Financial Reporting Analyst
Expertise: Accounting
Location: Houston, TX
 
Director Downhole Tool Engineering
Expertise: Electrical Engineering|Engineering Manager|MWD / LWD
Location: Houston, TX
 
AP Specialist
Expertise: Accounting
Location: Alpharetta, GA
 
search for more jobs

Brent Crude Oil : $51.46/BBL 4.63%
Light Crude Oil : $48.9/BBL 4.78%
Natural Gas : $3.18/MMBtu 0.90%
Updated in last 24 hours