Only three companies participated in the US Bureau of Ocean Energy Management’s (BOEM) first ever online lease sale. Out of the 4399 blocks offered, the sale only received bids for 24 of those blocks for a total of just over US$18 million.
 |
|
Image of Hopper preparing to announce bids for Lease Sale 248. Image from BOEM Twitter. |
Lease Sale 248 garnered $18,067,020 in high bids for 24 tracts covering 138,240 acres in the Western Gulf of Mexico Planning Area, BOEM Director Abigail Ross confirmed today (24 August).
The three companies that participated in Sale 248 include supermajors ExxonMobil, BP, and BHP Billiton. The sale consisted of approximately 4399 blocks, located from 9-250nm offshore, in water depths ranging from 16 to more than 10,975ft (5-3340m). The 23.8 million acres offshore Texas included the East Breaks, Garden Banks, and Alaminos Canyon areas.
“As a result of offering this area for lease, BOEM estimates a range of economically recoverable hydrocarbons to be discovered and produced of 116-200 MMbbl and 538-938 Bcf of natural gas, the agency said.
“The Gulf of Mexico continues to be one of the most productive basins in the world and is an important part of our Nation’s domestic energy portfolio,” said Hopper. “Though this sale reflects today’s market conditions and industry’s current development strategy, the bidding confirms that there is continued interest in the deepwater areas of the Gulf.”
Of the 24 blocks that were bid on, none of the blocks received more than one bid.
ExxonMobil bid and won a total of two blocks in the East Breaks, Blocks 590 and 591, for a total of $1.75 million.
BP bid on and won 10 blocks in the Garden Banks area for a total of $6.3 million. The blocks are: 488, 489, 491, 492, 532, 533, 536, 537, 581 and 582.
BHP Billiton bid on and won a total of 12 blocks. Nine of those blocks are located in the East Breaks consisting of 700, 742, 785, 786, 830, 870, 871, 872, and 915. The three remaining blocks are in the Alaminos Canyon: 39, 127, and 170. The Australian company spent nearly $10 million.
The first federal offshore oil and gas auction to be broadcast live on the internet, marked the 11th Gulf of Mexico offshore sale, and the final lease sale for the Western Planning Area, under the Obama Administration’s Outer Continental Shelf Oil and Gas Leasing Program for 2012-2017 (Five Year Program).
Lease sale 248 builds on the first 10 sales in the current Five Year Program, which offered more than 60 million acres and netted nearly $3 billion for American taxpayers.
Following today’s sale, each bid will go through an extensive 90-day evaluation process to ensure the public receives fair market value before a lease is awarded, BOEM said.
“Congratulations to the Bureau of Ocean Energy Management on their first livestream oil and gas lease sale. The relatively modest results of today’s Western Gulf of Mexico lease sale are indicative of the current market conditions and regulatory environment. Despite these challenging circumstances, the companies that participated in today’s sale are investing millions of dollars in the future of America’s energy and economic security with no guarantee of success or financial return," NOIA President Randall Luthi said. "The purchase of a lease block is a first step in a lengthy process that involves rigorous regulatory oversight including extensive environmental reviews, permitting, and safety checks."
According to news reports, despite the BOEM's efforts, its online lease sale still attracted protestors at its offices in New Orleans.
“It’s hard to miss the irony of activists traveling to such protests in gasoline fueled vehicles, or the fact that oil and natural gas provide low cost fuel to the income disadvantaged populations that these activists claim to protect. Should the ‘keep it in the ground’ movement stop federal leasing, we can all expect to pay far more for our basic energy needs and we will witness the loss of thousands of jobs in the Gulf of Mexico region. Billions of dollars to state and federal treasuries will also be left in the ground," Luthi said.
For protesters to try to use this awful disaster to further their political objectives is ill-conceived and does nothing to help the people of Louisiana,” Luthi concluded.
Read more:
BOEM to hold first online lease sale
Subscribe
