BOEM Gulf of Mexico Sale Nets $1.2 Billion in High Bids

MarineLink.com
Monday, July 22, 2013

The Bureau of Ocean Energy Management (BOEM) completed its required evaluation to ensure that the public receives fair market value for tracts leased as part of Central Gulf of Mexico Oil and Gas Lease Sale 227, which was held on March 20, 2013.

After extensive economic analysis, BOEM has awarded 307 leases on tracts covering 1,648,831 acres to the successful high bidders who participated in the sale, which made 7,299 unleased blocks covering about 38.6 million acres available offshore Louisiana, Mississippi and Alabama. The accepted high bids are valued at $1,199,052,037.

The terms of Sale 227 continued a range of incentives to encourage diligent development and ensure a fair return to taxpayers — including an increased minimum bid for deepwater tracts, escalating rental rates and tiered durational terms with relatively short base periods followed by additional time under the same lease if the operator drills a well during the initial period.

BOEM increased its minimum bid requirement in deepwater to $100 per acre, up from $37.50 in Central Gulf of Mexico lease sales prior to 2012. Rigorous historical analysis showed that leases that received high bids of less than $100 per acre have experienced virtually no exploration and development activities.

During the sale, 52 companies submitted 407 bids totaling $1,595,397,446 on 320 tracts. A total of $1,214,675,536 was received in high bids. BOEM rejected thirteen high bids, totaling $15,623,499 after determining that the value of those bids was insufficient to provide the public with fair market value for the tracts.

BOEM will reoffer these tracts as part of the next Central Gulf of Mexico sale, which is currently scheduled for March of 2014.

The highest bid accepted was $81,787,999, submitted by Samson Offshore, LLC and Statoil Gulf of Mexico LLC for Walker Ridge, Block 271. The tract is at depths greater than 5,249 feet (1,600 meters) and received two bids.

The sale’s results reflect strong, continuing industry interest in the Gulf of Mexico and President Obama’s commitment to expand oil and natural gas production safely and responsibly – reducing our dependence on foreign oil and supporting American energy jobs.

As part of the Obama Administration’s all-of-the-above energy strategy, domestic oil and gas production has grown each year the President has been in office, with domestic oil production currently higher than any time in two decades and natural gas production at its highest level ever. Renewable electricity generation from wind, solar, and geothermal sources has doubled and foreign oil imports now account for less than 40 percent of the oil consumed in America – the lowest level since 1988.

boem.gov/sale-227

Maritime Reporter July 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Latest Ocean-Going Shipbuilding Orders

Clarkson Hellas notes in its latest 'S&P Weekly Bulletin' shipbuilding orders placed in the dry bulk, tankship, gas carrier and containership sectors, as follows: Dry

MARAD Evaluates Natural Gas v. Conventional Fuel Emissions

The Maritime Administration (MARAD) informs it has released a study that evaluates total fuel cycle emissions for natural gas versus conventional marine fuels.

Unmanned Aircraft Makes USCG Icebreaker Landing

Coast Guard and National Oceanic & Atmospheric Administration researchers report the successful landing of an unmanned aircraft system on the flight deck of Coast Guard Cutter 'Healy',

Offshore

ABS to Class First Self-elevating Unit Built in Qatar

ABS, a provider of classification services to the global offshore industry, was selected by Nakilat-Keppel Offshore & Marine (N-KOM) to class its LB310S liftboat,

Industry Partnership to Enhance BOP Maintenance

The maintenance of blowout preventers (BOPs) has significant financial, logistical and safety implications for drilling operators and rig owners. DNV GL has now

Transnet National Ports Authority Orders 9 Voith Water Tractors

In South Africa’s largest local shipbuilding contract Transnet National Ports Authority has ordered nine new Voith Water Tractors (VWT) for use in several ports across the country.

Finance

Big Increase in Port of Houston Steel Cargoes

More steel moved across the docks in July than any month since 2008, Executive Director Roger Guenther reported at the recent meeting of the Port Commission of the Port of Houston Authority.

Textron Awarded $22-M Navy LCAC Contract Modification

The US Department of Defense informs that Textron Inc., New Orleans, Louisiana, is being awarded a $21,904,620 modification to a previously awarded contract (N00024-12-C-2401)

Euronav Books Profit from Sale of Chartered Ship

The owner of the 157,258 dwt containership Cap Isabella (built 2013), a vessel which Euronav had on bareboat charter, decided to sell the vessel to an unrelated third party.

Energy

Livanos Becomes Euronav Chairman

On 22 July 2014, the Board of Directors of Euronav NV unanimously appointed Peter G. Livanos as Chairman of the Board, with immediate effect in replacement of Marc

Scottish Independence Would Hurt Maritime Sector

A vote for independence from the U.K. would have a negative effect on the Scottish shipping and offshore maritime sector, according to a survey by leading international

Report: Ports Lack Maintenance Support

The latest Barometer Report from Trelleborg has revealed a huge gap in the maintenance requirements of port owners and operators, and the support that suppliers are able to provide.

Offshore Energy

SBI Offshore Negotiating Contract for Rig Builds

SBI Offshore Limited has announced that the Middle East-Chinese consortium, which recently awarded its subsidiary a contract to provide design and engineering services for a jack-up drilling rig,

Brazilian PSVs Get Rolls-Royce Offshore Cranes

Rolls-Royce signed a contract with Detroit Chile SA to supply offshore cranes to nine Platform Supply Vessels (PSVs) presently under construction at Detroit Brasil Ltda.

Industry Partnership to Enhance BOP Maintenance

The maintenance of blowout preventers (BOPs) has significant financial, logistical and safety implications for drilling operators and rig owners. DNV GL has now

 
 
Maritime Contracts Naval Architecture Pipelines Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.2357 sec (4 req/sec)