Nick Snow
Washington Correspondent
WASHINGTON, DC, Nov. 28 -- More than 12.7 million bbl of crude oil and condensate from federal leases in the Gulf of Mexico was sold to six companies as part of a royalty-in-kind (RIK) sale, the US Minerals Management Service said.
Chevron Products Co., ConocoPhillips, ExxonMobil Corp., Plains Marketing, Sempra Energy, and Shell Trading Co. submitted winning bids. Most of the contracts were for 6 months, with one contract awarded for 12 months.
"A record number of 14 companies submitted aggressive bids on the 34 packages offered," compared with nine bids in an unrestricted RIK sale concluded in August, MMS Director Johnnie Burton said. "These RIK sales continue to generate very high interest," she added.
The contracts awarded 12,710,700 bbl of crude, or 53,615 b/d, and provide for delivery to begin Jan. 1, 2007.
In mid-October, MMS sold 114.8 bcf of Gulf of Mexico gas to 10 companies in the first RIK transaction that included production from off Alabama as well as Louisiana and Texas. It said 15 companies tendered a record 115 offers for the RIK gas.
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