The US Bureau of Ocean Energy Management (BOEM) has unveiled final details for the latest western Gulf of Mexico lease sale.
Lease sale 233 will take place on 28 August and cover approximately 20.7 MM acres offshore Texas for exploration and development. BOEM estimates the proposed sale could result in the production of 116-200 MMbbl of oil and 538-938 Bcf of gas.
The sale will offer a total of 3,864 blocks, located from nine to 250 miles offshore, in water depths ranging from 5-3k346 m (16- 10,975 ft).
The sale includes all available unleased or non-protected areas in the western GoM planning area, and will be the third sale under the Outer Continental Shelf Oil and Gas Leasing Program for 2012-2017. It is also the second of five western GoM sales planned to be held under the program.
BOEM added that the final terms also continue to include the same range of incentives to “encourage diligent development and ensure a fair return to taxpayers as used in previous Western Gulf sales, with one exception”. The exception is that the provision for deep gas royalty relief under the Energy Policy Act of 2005 (EP Act) sunset on 3 May, 2013 will no longer be offered. Ultra-deep gas royalty relief required under EP Act will still be available.
The previous sale in this area last year attracted US $137.8 million in total high bids, largely focused in deepwater acreage.
In summary for sale 233, a total of 2,512 blocks in water depths of up to 400 m are being offered, for an initial 5-year period. A total of 370 blocks are available in water depths ranging from 400-800 m, again with a 5-year initial lease period.
In water depths of between 800-1,600 m (7- year initial lease period) there are 549 blocks being offered, while in ultra-deepwater of 1,600 m and beyond (10-year initial lease period) there are 433 blocks to be offered.
More details are available at: www.boem.gov/sale-233.
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