Gulf of Mexico Lease Sale 190 draws an official $364,024,583 in high bids

Ray Tyson

Petroleum News Houston correspondent

The U.S. Minerals Management Service, following an extensive two-phase bid evaluation that resulted in the rejection of several offers, says last March’s Central Gulf of Mexico Lease Sale 190 brought a final $364,024,583 into the government’s coffers.

Of the 557 tracts receiving bids, MMS said it rejected 14 high bids totaling $4,537,449 as insufficient for fair market value. In addition, one high bid at $201,450 was deemed unacceptable by MMS because it was below the required minimum bid amount stated in the Final Notice of Sale. MMS accepted the high bids on 542 tracts.

The highest bid accepted on a tract was $35,290,892 by Amerada Hess for Green Canyon block 468. The second and third highest bids accepted were for $31,088,000 by the bidding team of Unocal, Anadarko Petroleum, Nexen Petroleum, BHP Billiton Petroleum on Green Canyon blocks 512, and $8,213,415 by EnCana on Walker Ridge block 969.

“This sale indicates the continued strong interest of major and independent oil and gas companies in the Gulf,” MMS said, adding that sale results indicated a continuing interest in shallow-water areas, with 61 percent of the tracts receiving bids in less than 200 meters of water.

Money collected from the sale is distributed to the general fund of the U.S. Treasury, shared with the affected States, and set aside for special uses that benefit all 50 states.