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


 - Far From the Texas Coast, Hurricane Harvey Hits Oil Refiners (Sep 19)
 - Big Oil Becomes Greener With Progress in Cutting Pollution (Sep 18)
 - Papua New Guinea Starts Paying Landowners LNG Royalties (Sep 13)
 Company: Shellmore info


 - Canada Gas Set to Strike Back Against US Shale as Glut Eases (Sep 14)
 - Harvey's Wake Tempers Bullish Outlook for US Oil Output Growth (Sep 1)
 - Storm Harvey Opens Up Rare Jet Fuel Exports from Europe to US (Sep 1)
 Company: ConocoPhillipsmore info


 - For ConocoPhillips, Harvey A Test Of Remote Operations (Sep 7)
 - ConocoPhillips Says Eagle Ford Shale Output Nears Pre-Harvey Levels (Sep 5)
 - US Drillers Add No Oil Rigs as Harvey Slows Production - Baker Hughes (Sep 1)
 Company: Chevron Corporationmore info
 - Big Oil Becomes Greener With Progress in Cutting Pollution (Sep 18)
 - Chevron's Watson Said to Plan to Step Down, Journal Reports (Aug 22)
 - Glencore, Chevron Enter Mexico's Recently Opened Fuel Market (Aug 17)
 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
Project Coordinator
Expertise: Project Management
Location: Los Angeles, 
 
Business Development Specialist
Expertise: Business Development|Sales
Location: Midland, TX
 
Field Office Manager
Expertise: Accounting|Secretarial or Administrative
Location: Manquin, VA
 
search for more jobs

Brent Crude Oil : $55.14/BBL 0.61%
Light Crude Oil : $49.48/BBL 0.86%
Natural Gas : $3.12/MMBtu 0.95%
Updated in last 24 hours