MMS PLANS TWO GULF SALES IN 1994

The Minerals Management Service has outlined plans for a Central Gulf of Mexico lease sale in March 1994 and a western Gulf sale in August 1994. Both will be held in New Orleans. The Central Gulf Sale, No. 147, will offer 5,443 blocks covering 29.3 million acres 3-220 miles offshore in 43,425 m of water. MMS estimated the tracts hold recoverable resources of 1.21 tcf of gas and 120 million bbl of oil.

May 17, 1993

2 min read

The Minerals Management Service has outlined plans for a Central Gulf of Mexico lease sale in March 1994 and a western Gulf sale in August 1994.

Both will be held in New Orleans.

The Central Gulf Sale, No. 147, will offer 5,443 blocks covering 29.3 million acres 3-220 miles offshore in 43,425 m of water. MMS estimated the tracts hold recoverable resources of 1.21 tcf of gas and 120 million bbl of oil.

Some 1,281 blocks in less than 400 m of water will be offered for 5 year terms with a 12.5% royalty. Another 229 blocks in 400-900 m of water will be offered for 8 year terms, and 3,933 blocks in 900-3,000 m will be offered for 10 year terms, all carrying 16.66% royalties.

The western Gulf Sale, No. 150, will offer 4,670 blocks 9-220 miles offshore in 8 to more than 3,000 m of water. MMS said recoverable resources are about 650 tcf of gas and 40 million bbl of oil.

The sale will not include two blocks in the Flower Gardens Marine Sanctuary and 337 blocks in the Corpus Christi Naval Operating Area.

Some 1,644 blocks in less than 400 m of water will be offered for 5 year terms with a 12.5% royalty. Another 377 blocks in 400-900 m of water will be offered for 8 year terms, and 2,649 blocks in 900-3,000 m of water will be offered for 10 year terms, all carrying 16.66% royalty.

MMS is considering increasing delay rentals on the new leases, above the current $3/acre/year, to cover increased administrative costs.

The service also released draft environmental impact statements for both sales.