Shell Acquires Western Gulf of Mexico Block (USA)

  • Business & Finance

Shell Adds Block to Western Gulf of Mexico Assets (USA)

Shell has announced it was a successful bidder for one block in the Western Gulf of Mexico Lease Sale 233, held by The U.S. Department of the Interior’s Bureau of Ocean Energy Management on Wednesday.

“Shell bid on one block and was the apparent high bidder on Alaminos Canyon Block 772 with a bid of $4.2 million. The acquisition of this strategic block marks an important step in Shell’s plans for future Perdido development,” said the company in a statement.

Perdido is the world’s deepest offshore oil drilling and production platform. Moored in 2,450 metres (8,000 feet) of water in the Gulf of Mexico, it opened up a new frontier in deep-water oil and gas production.

The Lease Sale 233 offered 20.7 million acres and attracted $102,351,712 in high bids for 53 tracts covering 301,006 acres on the U.S. Outer Continental Shelf (OCS) offshore Texas. A total of 12 offshore energy companies submitted 61 bids.

Wednesday’s highest bid on a single tract was $30,583,560 submitted by ConocoPhillips Company for Alaminos Canyon Block 475. ConocoPhilips also placed the highest total amount in bonus bids, totaling $50,323,180 on 29 tracts.

Low Revenue

U.S. Senator David Vitter (R-La.) expressed his discontent with the revenue levels achieved from the lease sale, saying that the revenue levels for offshore leasing are far below what they could be, calling for more lease sales.

According to a statement on the senator’s website, Vitter has legislation that would force the Interior Department to open up nearly all of the outer continental shelf for lease sales.


Offshore Energy Today Staff, August 30, 2013


Related news

List of related news articles