The
NewsRoom
Release #: 3042
Date: March 17, 2004
Central Gulf of Mexico Sale
190 Attracts $368,763,482 in High Bids
Strong competition that produced robust bidding was a key factor in
Central Lease Sale 190, garnering $368,763,482 in high bids from 83
companies for oil and natural gas leases in the Federal waters of the
Gulf of Mexico. The total of all bids was $636,819,534.
The sale, held today in
New Orleans, was conducted by the U.S. Department of the Interior’s
Minerals Management Service. The agency received 829 bids on 557
tracts. “The fact that this was the highest number of bids received
in a Central Sale in the past six years is a clear indication of
industry’s continued confidence in the Gulf as a source of energy for
the nation,” said MMS Director Johnnie Burton. In this sale, 4,324
tracts comprising approximately 23 million acres offshore Alabama,
Louisiana, and Mississippi were offered.
“The results of this
lease sale are impressive and reflect a strong commitment by industry
to increase domestic oil and gas production during this crucial period
for our Nation,” Burton said. While interest in the deepwater
continues, the large number of tracts receiving bids in the
ultra-deepwater is of particular note. The most noteworthy aspect is
that 60% of the bids were on the shelf. “We believe this reflects
definite industry interest in deep gas in shallow waters in response
to royalty relief offered as part of MMS’s Deep Gas Initiative,” she
explained. The final rule was announced earlier this year.
The highest bid received
on a block was $35,290,892, submitted by Amerada Hess for Green Canyon
Block 468. The second highest bid received was $31,088,000, submitted
by a group that included Nexen Petroleum Offshore U.S.A. Inc.,
Anadarko Petroleum Corporation, Union Oil Company of California, and
BHP Billiton Petroleum (Deepwater) Inc. for Green Canyon Block 512.
Each of the high bids on
a block will go through an evaluation process to ensure the public
receives fair market value before a lease is awarded.
Because of a federal court order
issued March 15, 2004, the MMS web site and external email systems
have been temporarily disconnected. Until these systems are restored,
MMS will rely on telephone, fax, and regular mail for all external
communications. Therefore, information on Lease Sale 190 will not be
available on our website. Sale information is available by calling
the Gulf of Mexico Region Public Affairs Office at (504) 736-2589.
You may also fax us at (504) 736-2432.
Top Five Companies Based
on Total Number of High Bids Submitted |
Company |
Total High Bids |
Sum of High Bids |
Magnum Hunter Production, Inc. |
55 |
$8,364,868 |
BHP Billiton Petroleum (Deepwater) Inc |
32 |
$18,496,331 |
Chevron U.S.A. Inc |
29 |
$10,032,218 |
Remington Oil and Gas Corporation |
25 |
$4,571,124 |
BP Exploration & Production Inc |
24 |
$8,162,608 |
Top Five Companies Based
on Total Amount of High Bids Submitted |
Company |
Total High Bids |
Sum of High Bids |
Amerada Hess Corporation |
17 |
$40,710,005.00 |
BHP Billiton Petroleum (Deepwater) Inc. |
32 |
$18,496,330.50 |
Stone Energy Corporation |
8 |
$15,544,000.00 |
Pogo Producing Company |
15 |
$12,647,000.00 |
Tana Exploration Company LLC |
10 |
$12,145,905.75 |
The Minerals Management Service is the
federal agency in the U.S. Department of the Interior that manages the
nation’s oil, natural gas, and other mineral resources on the Outer
Continental Shelf in Federal offshore waters. The agency also
collects, accounts for, and disburses mineral revenues from Federal
and American Indian lands. MMS disbursed more than $8 billion
in FY 2003 and more than $135 billion since the agency was created in
1982. Nearly $1 billion from those revenues go into the Land and
Water Conservation Fund annually for the acquisition and development
of state and Federal park and recreation lands.
Relevant Web Sites
Central Lease
Sale 190
Deep Gas
Incentives and Lease
Sale 190
Deep Gas
Prospects, Lease Sale 190
MMS Main Website
Gulf of Mexico Website
Media Contacts
Debra Winbush
(504) 736-2597
Caryl Fagot
(504) 736-2590
MMS: Securing Ocean Energy & Economic Value for
America
U.S. Department of the Interior |