The Department of the Interior (DOI) sold the largest amount of space by acreage ever in the Gulf of Mexico’s federal offshore program, totaling 508,096 acres, according to a DOI press release.
The auction brought in $121 million in revenue from its first lease under the National Outer Continental Shelf Oil and Gas Leasing Program for 2017 to 2022. 27 companies participated in the sale.
“The path to American energy dominance starts in the Gulf, and the hard work of rig and platform workers, support staff onshore, and the industries that support them cannot go unnoticed,” Interior Secretary Ryan Zinke said in the press release. “Today’s results will help secure their jobs and create more good paying jobs while generating $121 million in revenue to fund everything from conservation to infrastructure.”
The majority of revenue from the sale was generated by a dozens of seven and eight figure bids, however, the majority of bids fell below the $1 million mark. The overall view of the sale revealed that oil companies tended to favor, and pay more, for proven, oil producing tracts over less explored areas, Platts reports.
“Through regulatory streamlining, expanded offshore and onshore opportunities and great cooperation with our stakeholders, we expect to encourage competition while continuing to receive a fair and equitable return on oil and gas resources,” Land and Minerals Management acting assistant secretary Katharine MacGregor said.
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