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Investment reaches historic lows at US Gulf of Mexico Central Lease Sale 241

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Report summary

The US Gulf of Mexico Central Lease Sale 241 was held on 23 March 2016 and attracted 148 bids from 26 companies, with high bids totalling US$156 million. The number of participants and total spend declined for the fourth consecutive year. High bids declined by 71% from the previous Central Lease Sale. The majority of bidding occurred in Mississippi Canyon, where extensive in-place infrastructure could reduce development costs at new fields. Similar to last year, 90% of bids were uncontested, resulting in an average bid per deepwater block of just US$1.3 million. Approximately half of bids were not much higher than the minimum acceptable bid of $576,000 per block. Despite these declines, remote regions were not completely ignored, indicating that the industry still believes that frontier plays can generate positive economics.

What's included

This report contains

  • Document

    Investment reaches historic lows at US Gulf of Mexico Central Lease Sale 241

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Table of contents

  • Executive summary
  • Mississippi Canyon stands out
  • Sale results show some optimism for frontier prospects, but overall spend dwindles
  • Private companies expand their footprint in deepwater
  • Shelf is targeted by private operators

Tables and charts

This report includes 5 images and tables including:

Tables

  • Central Lease Sale 241 Summary
  • Three most recent Central Lease Sales (2014-2016)

Images

  • Top 10 companies by high bids in deepwater
  • Shelf bids and bonuses by lease sale (2008-2016)
  • Apparent high bidders by block in CLS 241

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