American Oil and Gas Reporter - October 2015 - 148
SpecialReport: LAGCOE Independents' Guide
BOEM Finalizes 2016 Gulf Lease Sales
WASHINGTON-The U.S. Bureau of
Ocean Energy Management announces
that it will offer 40 million acres for oil
and gas exploration and development at
two lease sales in the Central and Eastern
Gulf of Mexico planning areas offshore
Louisiana, Mississippi, and Alabama.
Proposed Central Gulf Sale 241 and
Eastern Gulf Sale 226, both scheduled for
March 2016 in New Orleans, will be the
ninth and 10th lease sales under the 201217 five-year Outer Continental Shelf oil
and gas leasing program. BOEM reports
that the first eight sales in the five-year
program offered more than 60 million acres
and netted nearly $3 billion in high bids.
At Central Gulf Sale 235, which was
held in March, 42 oil and gas companies
submitted 195 bids on 169 tracts covering
923,700 acres. The sale generated $539
million in high bids, according to BOEM.
The deepest-water block to receive a bid
was Lloyd Ridge Block 454 in 9,900
feet of water, tendered by Cobalt International Energy.
Central Sale 241 will include a proposed 7,986 blocks covering 42.5 million
acres. The tracts are located from three
to 230 nautical miles offshore in water
depths ranging from shallower than 10
feet to deeper than 11,000 feet. BOEM
estimates the lease sale could result in
the production of 460 million to 894 million barrels of oil and 1.9 trillion to 3.9
trillion cubic feet of natural gas.
BOEM says Sale 226 will be only the
second lease sale for the Eastern planning
area since 2008. Although the previous
Eastern sale (Sale 225 in March 2014)
did not attract any bids, BOEM notes
that continued interest in the area is evidenced by ongoing activity on existing
leases from past sales, as well as activity
on leases immediately adjacent to Sale
148 THE AMERICAN OIL & GAS REPORTER
226 blocks in the Central planning area.
Sale 226 will offer 162 blocks covering
595,475 acres, the agency reports. The
blocks are located at least 125 miles offshore
in water depths ranging between 2,657
feet and 10,213 feet. The area is bordered
by the Central planning area on the west
and the Military Mission Line (running
north-to-south at 86 degrees, 41 minutes)
on the east. BOEM says the area is south
of eastern Alabama and western Florida,
with the nearest point of land located 125
miles to the northwest in Louisiana. BOEM
estimates that Sale 226 could result in up
to 71 million barrels of oil and 162 billion
cubic feet of gas production.
All proposed terms and conditions for
sales 241 and 226 are detailed in proposed
notices of sale information packages at
www.boem.gov/sale-241 and www.boem.gov/sale-226, respectively.
In addition, BOEM reports that it has
American Oil and Gas Reporter - October 2015
Table of Contents for the Digital Edition of American Oil and Gas Reporter - October 2015
Contents
American Oil and Gas Reporter - October 2015 - Cover1
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