Offshore staff
NEW ORLEANS – The Bureau of Ocean Energy Management (BOEM) reports that Lease Sale 261 generated $382,168,507 in high bids for 311 tracts covering 1.7 million acres in federal waters in the US Gulf of Mexico.
BOEM says that a total of 26 companies participated in the lease sale, submitting 352 bids totaling $441,896,332.
Among the winners were Chevron, BP, Shell, Equinor, Repsol, Woodside Energy, Occidental Petroleum, Murphy Oil, Talos Energy, and Kosmos Energy.
According to Evercore ISI:
- Repsol acquired 29 and seven permits for blocks in the Mustang Island and Matagorda Island areas, respectively.
- Chevron acquired 18 blocks in the East Breaks area, while Woodside acquired five blocks and Occidental took three blocks.
- Shell had a "big win" in the Garden Banks, Alaminos Canyon, Keathley Canyon, and Mississippi Canyon areas.
The investment consulting firm also noted that, at $382 million, Lease Sale 261 was the largest oil and gas lease auction since 2015 and much higher (45%) than Lease Sale 259 that took place earlier this year.
Pursuant to a ruling from the United States Court of Appeals for the Fifth Circuit, BOEM included lease blocks that were previously excluded due to potential impacts to the Rice’s whale population from oil and gas activities in the Gulf of Mexico.
The lease sale offered 13,482 unleased blocks on 72.7 million acres in the Gulf’s Western, Central and Eastern Planning Areas.
Following the sale, the American Petroleum Institute issued a statement from Vice President of Upstream Policy Holly Hopkins:
“Despite policy headwinds, today’s sale generated the highest bid amount in nearly a decade, demonstrating that our industry is working to meet growing demand and investing in the nation’s long-term energy security. Just as today’s record U.S. production was supported by investment and policy decisions made years ago, new leasing opportunities are critical for maintaining American energy leadership for decades to come. Although today’s congressionally mandated lease sale is a positive step after multiple delays, the lack of any offshore sales in the year ahead is a prime example of the administration’s failure to implement a long-term energy strategy. We urge the administration to reconsider its shortsighted approach and plan today for tomorrow’s energy demand.”
12.20.2023
