By OGJ editors
HOUSTON, Nov. 5 -- The US Minerals Management Service (MMS) has scheduled two sales of Outer Continental Shelf leases in the Gulf of Mexico (GOM) for Mar. 16, 2005, in New Orleans. The sales cover both deep shelf and deepwater areas.
OCS Sale 194 in the central GOM encompasses 4,043 blocks covering 21.3 million acres 3-210 miles off Louisiana, Mississippi, and Alabama in water 4-3,400 m deep. MMS estimated the sale could result in production of as much as 654 million bbl of oil and 3.3 tcf of natural gas.
Sale 197 in the eastern GOM will offer 124 blocks not leased in Sales 181 and 189 (OGJ Online, July 12, 2001 and Dec. 10, 2003). The blocks cover 714,240 acres in areas 100-196 miles offshore in water 1,600-3,425 m deep. MMS estimates that 65-85 million bbl of oil and as much as 340 bcf of natural gas are recoverable in this lease area.
Revisions
MMS said it will lease Vermilion Blocks 139 and 140 but set limits on their use because of the approved deepwater LNG port to be built there. Governmental agencies have received six license applications for deepwater LNG ports that could affect future lease sales.
MMS revised the price threshold for suspending deepwater royalties to $39/bbl for oil and $6.50/MMbtu for gas and also raised shallow-water, deep-gas royalty suspension provisions. MMS said it will announce in February its decision on whether to change deepwater royalty suspension thresholds to a monthly basis from the current annual basis.
Minimum bids for tracts in 400-800 m of water have been raised to $37.50/acre.
Each bidder must identify specified geophysical data it has acquired for each block upon which it is bidding. These and other bidding specifications and requirements may be obtained at http://www.gomr.mms.gov .