Nick Snow
Washington Editor
WASHINGTON, DC, Feb. 13 -- The US Minerals Management Service expects to gross $362.5 million from its latest royalty-in-kind crude oil sale from federal offshore leases in the Gulf of Mexico and Pacific Ocean, the Department of the Interior agency reported.
Six companies submitted winning bids for the 4,264,500 bbl of crude in the January sale, or 29,050 b/d over the terms of the contracts, MMS said Feb. 12. Delivery is scheduled to begin Apr. 1 and to conclude June 30, with the exception of one Pacific Ocean package that was awarded for 1 year.
MMS based its estimated revenue from the sale on the current $85/bbl for oil of this quality. It periodically conducts such sales as part of a program which allows it to take some crude in kind instead of receiving a cash payment. MMS then competitively sells this royalty crude on the open market.
Chevron Products Co., ConocoPhillips Co., Exxon Mobil Oil Corp., Sempra Trading Co., Shell Trading, and Plains Marketing LP submitted the winning bids in the latest RIK oil sale, MMS said.
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