March 19, 2003
Central Gulf lease sale attracts impressive bids
Lease sales are an important indicator of future offshore industry activity.
"The results of this lease sale are impressive and reflect a strong commitment by industry to increase domestic oil and gas production during this crucial period for our Nation," said MMS Director Johnnie Burton. "Although interest in deepwater continues, two-thirds of the bids in this sale are on the continental shelf. We believe this reflects definite industry interest in deep gas in shallow waters in anticipation of potential royalty relief through MMS's Deep Gas Initiative."
The highest bid received on a block was $8,216,885, submitted by Hunt Petroleum (AEC) Inc. Cheyenne International Corp., and Energy Partners, Ltd. for South Marsh IslandSouth Addition/109.
The high bid on a block will go through an evaluation process to ensure the public receives fair market value before a lease is awarded.