BOEM: Western GoM Lease Sale 229 Nets $133 Mln in High Bids

BOEM Western GoM Lease Sale 229 Nets $133 Mln in High Bids

The U.S. Bureau of Ocean Energy Management (BOEM) said Thursday it had completed its required evaluation to ensure that the public receives fair market value for tracts leased as part of Western Gulf of Mexico Oil and Gas Lease Sale 229.

After extensive economic analysis, BOEM awarded leases on all 116 tracts that received bids to the successful high bidders. The accepted high bids are valued at $133,767,074.

Sale 229, which was held on November 28, 2012, offered 3,873 unleased blocks covering more than 20 million acres offshore Texas. During the sale, 13 companies submitted 131 bids totaling $157,683,267 on 116 tracts, covering 652,522 acres. A total of $133,767,074 was received in high bids, and after a two-phase post-sale bid evaluation process under its bid adequacy procedures, BOEM determined that the value of each of the high bids was sufficient to provide the public with fair market value for the tracts.

The highest bid on a single tract was $17,221,317, submitted by Chevron U.S.A., Inc. for East Breaks Block 546. Chevron U.S.A., Inc. also submitted the highest total amount in bonus bids, totaling $56,031,991 on 28 tracts.

Funds from the accepted high bids will be distributed to the general fund of the U. S. Treasury, shared with the affected states and set aside for special uses that benefit all 50 states.

Press Release, March 18, 2013