US offshore drilling auction sees $264 mln in bids

USA

WASHINGTON D.C., March 31, 2023 – The USA’s latest oil and gas drilling auction for plays in the Gulf of Mexico has generated USD 264 million, Reuters reported on Wednesday.

The auction put on by the Bureau of Ocean Energy Management saw 313 concessions put on offer covering 297,000 square kilometres on the Outer Continental Shelf.

Bids were livestreamed on Wednesday morning, with large bids coming from energy giants Chevron, ExxonMobil and BP.

Chevron bid for 75 tracts for almost USD 108 million, including the largest bid at the auction for the Keathley Canyon deepwater area for USD 15.9 million.

ExxonMobil took on 69 shallow-water blocks near Texas for USD 9.8 million.

Other large bidders were BP that spent USD 46.6 million, Shell that spent USD 20.1 million and Equinor that spent USD 18.3 million.

All leases are between five to 10 years and carry royalty rates of 18.75%.

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