Home / News / New central GOM lease sale a far cry from 2008 record-breaker

 The Central Gulf of Mexico Oil and Gas Lease Sale 208, held this week in New Orleans, attracted more than $703 million in high bids. The Minerals Management Service (MMS) said that 70 companies submitted 476 bids on 348 tracts comprising over 1.9 million acres offshore Louisiana, Mississippi and Alabama.

This is significantly lower than 2008’s record-breaking Central Gulf of Mexico Sale 206, which netted $3.67 billion in high bids. In that sale, 85 companies submitted 1,057 bids on 615 tracts.

New central GOM lease sale a far cry from 2008 record-breaker

The highest bid received in on a tract in Sale 208 was more than $65.6 million, submitted by Shell Gulf of Mexico for Mississippi Canyon, Block 721. The operator had a total of $153.63 million in 39 high bids in this round.

A total of 13 tracts in the “181 South Area” of the Central Gulf of Mexico received bids, with the high bids totaling $6,476,545. The states of Alabama, Mississippi, Louisiana and Texas will share in 37.5% of the high bids on these tracts, as well as all future revenues generated from this acreage leased today in the “181 South Area.” In addition, 12.5% of revenues from these tracts will go into the Land and Water Conservation Fund to enhance parklands and for other conservation projects.

Other top bidders in this sale included BP ($77.5 million in high bids); Marathon Oil ($62.4 million); Noble Energy ($55.4 million); BHP Billiton Petroleum ($50.4 million); Statoil Gulf of Mexico ($49.3 million); Repsol E&P ($48.5 million); ExxonMobil ($24.5 million); Chevron ($22.4 million); and Ecopetrol America ($20.6 million).

Each high bid on a tract will go through an evaluation process before a lease is awarded.

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