Eastern Gulf of Mexico Sale 189 attracts about $8.4 million in high bids

Six companies participating in Lease Sale 189 in New Orleans Tuesday submitted 16 bids totaling about $9 million for 14 tracts in the eastern Gulf of Mexico. Of that amount, successful high bids totaled about $8.4 million.

Dec. 10, 2003

By OGJ editors

HOUSTON, Dec. 10 -- Six companies participating in Lease Sale 189 in New Orleans Tuesday submitted 16 bids totaling about $9 million for 14 tracts in the eastern Gulf of Mexico. Of that amount, successful high bids totaled about $8.4 million.

The US Department of the Interior's Minerals Management Service had offered 256 blocks comprising 1.47 million acres off Alabama adjacent the Central Gulf of Mexico planning area in an attempt to stimulate domestic production in an atmosphere of high natural gas prices.

Shell Offshore, Inc. and Nexen Petroleum Offshore USA offered the highest bid on a block—$2.2 million for Desoto Canyon Block 398. The deepest block attracting a bid was Desoto Canyon Block 972, in about 2,713 m of water.

"The bidding activity today was moderate," said MMS Director Johnnie Burton. "However, the area offered is of relatively small size, and the highly successful Sale 181 was held only 2 years ago." She added that time was needed to better assess the area. "We believe industry remains interested in frontier areas, and MMS is committed to managing these areas to help ensure America's energy future."