High bids doubled 2017 sale

The Department of Interior announced on March 20 that its region-wide Gulf of Mexico Lease Sale 252 generated $244,299,344 in high bids for 227 tracts covering 1,261,133 acres in federal waters of the Gulf of Mexico.

By comparison, Lease Sale 251, the last lease sale before March 20, 2019, generated $178 million in high bids. Lease Sale 250 in 2018 had $124 million in high bids. Lease Sale 249 in 2017 received $121 million in high bids.

A total of 30 companies participated in the March 20 lease sale, submitting $283,782,480 in all bids.

Lease Sale 252 included 14,699 unleased blocks, located from three to 231 miles offshore, in the Gulf’s Western, Central and Eastern Planning Areas in water depths ranging from nine to more than 11,115 feet (three to 3,400 meters).

“The Gulf of Mexico remains a premier basin, covering about 160 million acres. It holds about 48.5 billion barrels of oil and 141 trillion cubic feet of undiscovered and technically recoverable gas,” said Acting BOEM Director Walter Cruickshank.

Revenues received from OCS leases (including high bids, rental payments and royalty payments) are directed to the U.S. Treasury, certain Gulf Coast states (Texas, Louisiana, Mississippi, and Alabama), the Land and Water Conservation Fund, and the Historic Preservation Fund.

In addition, BOEM has included appropriate fiscal terms that take into account market conditions and ensure taxpayers receive a fair return for use of the OCS. In recognition of current hydrocarbon price conditions and the marginal nature of remaining Gulf of Mexico shallow water resources, these terms include a 12.5 percent royalty rate for leases in less than 200 meters of water depth, and a royalty rate of 18.75 percent for all other leases issued under the sale.

Lease Sale 252, livestreamed from New Orleans, was the fourth offshore sale held under the 2017-2022 National Outer Continental Shelf Oil and Gas Leasing Program. Ten region-wide lease sales are scheduled for the Gulf, where resource potential and industry interest are high, and oil and gas infrastructure is well established. Two Gulf lease sales will be held each year and include all available blocks in the combined Western, Central, and Eastern Gulf of Mexico Planning Areas.

All terms and conditions for Gulf of Mexico Region-wide Sale 252 are detailed in the Final Notice of Sale information package, which is available at http://www.boem.gov/Sale-252/.

Latest Federal Lease Sale in the Gulf of Mexico Draws $244.3 Million in High Bids - Oil & Gas 360

Source: BOEM

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