US Gulf of Mexico Central Lease Sale 231 overshadows Eastern Lease Sale 225
Operators placed high bids totalling US$850.7 million on 326 blocks in Central Gulf Lease Sale (CLS) 231, over US$360 million less than last year. No bids were placed in Eastern Lease Sale (ELS) 225. BOEM also announced the winning bids from Western Lease Sale 233 that were pending the ratification of the US-Mexico Transboundary Hydrocarbons Agreement. Three blocks received uncontested bids by ExxonMobil totalling US$20 million.
Operators spent heavily on acreage in Mississippi Canyon, Green Canyon and Garden Banks, with 78 high bids totalling US$460 million. This acreage includes well developed infrastructure and well known geology in the Pleistocene, Pliocene and Miocene plays. These bids echo a value over volume strategy allowing operators to develop incrementally with project breakevens of area fields as low as US$35/bbl.