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Posts Tagged ‘Lease Sale 261’

Saluting the Christmas lease sale (261)

Posted in Gulf of Mexico, Offshore Energy - General, tagged , , , , , , , , , , on December 22, 2023| Leave a Comment »

  • Biggest prize at the holiday party went to Anadarko: Mississippi Canyon 389 – 5 bids, $25.5 million high bid
  • Biggest holiday shopping spree: Shell’s 65 high bids accounted for 24% of the sale’s high bids (excluding CCS bids).
  • Big spender award: Hess – $88.3 million on only 20 high bids. Does Chevron approve? 😀
  • Aussie, Aussie, Aussie, Oi, Oi, Oi: Strong performance by Woodside. 18 high bids, $24.8 million
  • Heia Norge!: Equinor continues to shine in the GoM! 13 high bids, $20.6 million
  • Spirit of America award to Red Willow Offshore which is owned by the Southern Ute tribe. 22 high bids!
  • Deepwater independents for (energy) independence: Beacon, Murphy, LLOG, Kosmos, Talos, Houston Energy, Ridgewood, QuarterNorth, Alta Mar, CSL, CL&F, and Westlawn
  • Smart shelf shoppers: Arena, Byron, Focus, Cantium
  • Even pace wins the race: Another solid lease sale for bp – 24 high bids.
  • So happy together 😀: Chevron and Hess combined for 48 high bids, $114 million
  • Coal in their stockings? Repsol (Sale 261) and Exxon (Sales 257 and 259) made up their own rules for acquiring carbon dumping leases. Perhaps some solid carbon in their Christmas stockings would be appropriate.
  • Christmas in July?: A lease sale in 2024 is needed. Sometime near the 4th of July holiday would be good. It’s up to you Congress!

Holiday greetings to our friends around the world!

Stocking stuffer for that special person! 😉

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Looking at the “top 10” Sale 261 bids

Posted in Gulf of Mexico, Offshore Energy - General, tagged , , , , , on December 21, 2023| 1 Comment »

It’s always interesting to compare the high bids with the “runner-up” bids on the same tracts. Usually the gap is large and, as indicated in the table below, that is the case with the Sale 261 “top 10.” This tells us that bidding is independent, that tract evaluation is far from an exact science, that information and expert opinions differ, and that companies have different business and bidding strategies.

Particularly interesting in this sale were the tracts that both Hess and Chevron, its future parent, sought to acquire. Chevron and Hess bid against each other on two of the “top 10” tracts, and Hess outbid Chevron by wide margins. Will this affect post-merger relationships? 😉

In a future post, we’ll look at the 14 rejected Sale 259 high bids and the bidding on these tracts in Sale 261.

blockhigh bid
(million $)		company2nd highest bid
(million $)		company
MC 38925.5Anadarko1.9LLOG
GC 18821.0Hess4.8Chevron
GC 15118.0Hess3.0Anadarko
GC 72317.2Anadarko (55%)
Chevron (45%)		2.0Equinor
GC 11614.0Hess7.5Anadarko
GC 72212.0Equinor1.4Chevron (55%)
Anadarko (45%)
GC 727.5Hesssingle bidder
GC 2327.0Hess1.1Chevron
GB 7016.7Shellsingle bidder
KC 2105.3Shellsingle bidder

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Lease Sale 261 observations

Posted in Gulf of Mexico, Offshore Energy - General, tagged , , on December 20, 2023| Leave a Comment »

  • Good prep by the BOEM leasing staff. On time. Quality live stream. Smooth bid reading by Jim Kendall and Bernadette Thomas.
  • Strong sale: $382.2 million in high bids vs. $263.8 for Sale 259. Anything over $300 million would have been considered a good sale.
  • 26 companies participated (updated from pre-sale stats)
  • Strong participation by the GoM stalwarts: Shell, Chevron, Oxy/Anadarko, BP, Woodside (BHP), Equinor, Talos, LLOG, Walter, Kosmos, Beacon
  • Kudos to Arena, Byron, Cantium, Focus for keeping the shelf alive
  • Contrary to the regulations, it looks like we once again have a company seeking to acquire oil and gas leases for carbon disposal purposes. This time it’s Repsol which was the sole bidder for 36 low-value nearshore tracts in the Mustang Island and Matagorda Island areas (red blocks at the western end of the map above). At least Repsol also bid legitimately on 5 deepwater tracts.
  • Exxon was a complete no show, as was ConocoPhillips.

Complete sale statistics will soon be available at BOEM.gov.

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Gulf of Mexico lease sale 261 is just one week from today!

Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged , , , on December 13, 2023| Leave a Comment »

This should be an interesting sale. Below are some of the questions that may be answered:

  • Will the Rice’s whale issues affect bidding for deepwater leases? The 5th Circuit’s ruling removes the Rice’s whale lease stipulation. However, BOEM’s Notice to Lessees and Operators (NTL) includes the same provisions and still stands pending further consultations with NOAA. Although the NTL is a “guidance document” (wink-wink), there are ways of making it stick through the plan approval process. Even without binding requirements, companies might choose to fully comply with the NTL to minimize legal risks.
  • Will the uncertainty about future sales spur or constrain bidding? Absent legislative action, no sale will be held in 2025.
  • Will the 14 blocks with rejected high bids at Sale 259 receive bids at Sale 261? If so, will the bids be higher or lower? Is it prudent to reject high bids without knowing when the next sale might be held?
  • Will bp, Chevron, Shell, Equinor, Oxy, and Woodside continue to be bullish on the GoM?
  • Will Red Willow Offshore, owned by the Southern Ute tribe, again be an active bidder?
  • Will Exxon again seek to acquire carbon sequestration leases at an oil and gas lease sale? After a long absence, it would be good to see the US super-major acquire leases for oil and gas purposes. Ditto for ConocoPhillips.
  • How many companies will participate in the sale? 30-35 would be a nice outcome.
  • What will be the sum of the high bids? >$300 million would be a solid result.

BOEM will live stream the opening of bids at 9 am CDT on Dec. 20, 2023

BOEM

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Sale 261 will be held on Dec. 20th, one day ahead of the deadline!

Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged , , on November 16, 2023| Leave a Comment »

As a result of the order issued by the United States Court of Appeals for the Fifth Circuit on Nov. 14, 2023, the Bureau of Ocean Energy Management (BOEM) has scheduled Lease Sale 261 for Dec. 20, 2023.

The Gulf of Mexico oil and gas lease sale was originally scheduled for Sept. 27, 2023, and later scheduled for Nov. 8, 2023, in response to judicial orders.

Pursuant to direction from the Court, BOEM will include lease blocks that were previously excluded due to concerns regarding potential impacts to the Rice’s whale population in the Gulf of Mexico. BOEM will also remove portions of a related stipulation meant to address those potential impacts from the lease terms for any leases that may result from Lease Sale 261.

A Final Notice of Sale will be published in the Federal Register on Nov. 20, 2023, and will be available for public inspection on Nov. 17, 2023. 

BOEM will live stream the opening of bids at 9 am CDT on Dec. 20, 2023. All terms and conditions of the lease sale are listed in the FNOS. For more information, go to: www.boem.gov/sale-261.  

BOEM

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Per the 5th Circuit ruling, Sale 261 must be held by Thursday, December 21, 2023 (37 days from the date of their order)

Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged , , , , on November 15, 2023| 2 Comments »

The sale could be held sooner. However, since BOEM asked for 37 days, I’m assuming that the sale will be on December 21.

In the 70 year history of the oil and gas leasing program, this will be the sale date that is closest to Christmas. Yet another major milestone for the offshore program! 😀

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5th Circuit rules against intervenors. Lease Sale 261 must be held in 37 days. Deleted tracts must be included. Rice’s whale stipulations must be deleted.

Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged , , , , , , on November 15, 2023| Leave a Comment »

Order is pasted below and attached.

IT IS ORDERED and ADJUDGED that the Intervenors’ appeal is DISMISSED. As for BOEM’s limited appeal as to the timing of the sale, we hereby AMEND the district court’s preliminary injunction only to the extent that the deadline for conducting Lease Sale 261 shall now be thirtyseven days from the date of the issuance of the mandate in this appeal.
IT IS FURTHER ORDERED that each party bear its own costs on appeal.

gov.uscourts.lawd_.201143.98.0Download

Background information and related posts.

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5th Circuit hears arguments on Lease Sale 261 appeal

Posted in Gulf of Mexico, Offshore Energy - General, tagged , , , , , on November 13, 2023| Leave a Comment »

Today, the 5th Circuit Court of Appeals heard oral arguments in the appeal of the District Court’s injunction against the Rice’s whale tract deletions and operating stipulations for Sale 261.

If you want to listen to a recording of these arguments, you can do so at this link. The hearing was brief – only about 45 minutes.

Judging by the comments, it sounds like the Court will reach a decision soon. The Department of the Interior is asking for 37 days after the ruling to organize and hold the sales. The industry attorney seemed comfortable with that, so the sale should be prior to Christmas.

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Under the circumstances, delaying Lease Sale 261 was the only reasonable alternative

Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged , , , on November 6, 2023| Leave a Comment »

In light of the 5th Circuit’s order, holding the sale on 11/8 would have been messy for all sides in the Rice’s whale dispute. Seemingly, the only option for holding the sale prior to the Court’s decision on the injunction would have been the following:

  • Allow, but not accept, bids on the tracts in the Rice’s whale expanded area.
  • Add the Rice’s whale stipulations while providing notice that they might subsequently be removed.

Because the RIce’s whale stipulations would affect the value of all deepwater leases, bidders would be rolling the dice on the outcome of the case.

Also, absent legislative action, there will be no lease sale in 2024. This adds to the importance of Sale 261, and making sure the terms are understood.

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Official announcement on the postponement of oil and gas lease sale 261, Gulf of Mexico

Posted in Gulf of Mexico, Offshore Energy - General, tagged , , , on November 2, 2023| Leave a Comment »

As a result of the order issued by the United States Court of Appeals for the Fifth Circuit on October 26, 2023, in Louisiana v. Haaland (Case No. 23-30666), the Bureau of Ocean Energy Management (BOEM) is postponing Lease Sale 261, which was originally scheduled for September 27, 2023, and later scheduled for November 8, 2023, in response to judicial orders. Until the court rules, BOEM cannot be certain of which areas or stipulations may be included in the sale notice.

Potential bidders in Lease Sale 261 should not submit bids until BOEM provides additional instruction. BOEM will hold any bids already received and will hold the sale after it receives further direction from the Court of Appeals.

BOEM

previous posts on sale 261

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