Interest Declining In Offshore Acreage Leases

Friday, August 27, 1999
Preliminary results of the latest government sale of offshore oil and natural gas exploration acreage leases in the U.S. Gulf of Mexico show a decline in oil company interest in the properties, officials from the U.S. Mineral Management Service (MMS) said on Tuesday. The latest sale, the Western Gulf Lease Sale 174, received 177 bids from 37 companies on a total of 153 acreage tracts. Bids in the previous sale, held in March, resulted in 272 bids from 67 companies for 207 tracts. The sales are held twice annually, the first for acreage in the central Gulf and the second in the west for acreage offshore Texas and Louisiana. Gulf of Mexico lease sales over the past four years began generating record interest from oil companies after MMS initiated a royalty relief program - a system of tax relief - for companies taking deepwater tracts, according to one MMS spokesman. One 1997 sale received over 1,200 bids on the back of high oil prices. But the most recent cycle of low oil prices, which had led to upstream spending cuts by U.S. firms, a string of mergers and the downsizing activity in the domestic oil patch, has also resulted in a drop in industry interest in lease sales, according to MMS officials. The declining interest could be explained, at least in part, by the fact that a lot of inventory from past sales is unexplored and undeveloped and companies are now focusing on developing those properties before acquiring more acreage, an MMS spokesman said. Of the 153 tracts bid on in this most recent sale, 76 were in water depths of less than 400 meters, 13 were in depths of 400-800 meters, and 64 in deepwater or, depths greater than 800 meters. Details on the sale will be released on Wednesday. MMS will then take a week to determine if all the bids placed for blocks reflect their fair market value. There are 3,647 blocks available for sale at present, according to the MMS.
Maritime Reporter September 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

NMEA Award for Simrad HALO Pulse Compression Radar

Simrad HALO Pulse Compression Radar has been awarded the Technology Award at the 2015 National Marine Electronics Association (NMEA) Conference and Expo in Baltimore, Md.

Two RAscal 1500 Tugs Delivered

Sanmar Shipyard of Turkey has recently completed two RAscal 1500 tugs for Jordanian owners. The tugs are now delivering marine services to the FSRU berthing

HMAS Melbourne Intercepts 427kg Heroin

HMAS Melbourne’s crew has seized 427 kilograms of heroin hidden in a fishing dhow carrying the illegal drugs across the Indian Ocean. The intercept occurred


Search for Ship Lost in Hurricane a Big Challenge

Deep seas may complicate efforts to find the sunken U.S. cargo ship lost off the Bahamas during Hurricane Joaquin, a federal safety investigator said, as a search

MacGregor's Deck Machinery for Sentinel Marine ERRV

MacGregor, part of Cargotec, will supply deck machinery for a new 65m emergency rescue & response vessel (ERRV) for Sentinel Marine. The ship has been designed

Kruszewski Joins Braemar Engineering

Braemar Engineering, the specialist maritime engineering consultancy, today announced the appointment of Chis Kruszewski to the role of Senior Electrical Engineer in its Offshore,

Maritime Contracts Maritime Standards Naval Architecture Navigation Offshore Oil Salvage Ship Electronics Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3037 sec (3 req/sec)