The U.S. Department of the Interior’s Minerals ManagementService (MMS) received more than $741.85 million in 486 bids duringthe Western Gulf of Mexico Lease Sale No. 171. Winning or high bidstotaled $553.4 million for 402 blocks.

The results are down sharply from last year’s western Gulf sale,and depressed oil prices are likely to blame for dampeningenthusiasm for this year’s sale. Last year’s sale broke records. Atotal of 1,224 bids were made on 804 blocks. This time around, atotal of 3,778 blocks were offered, and each block received anaverage of 1.21 bids. There were 63 companies participating. Thehighest bid was nearly $37.41 million from a group formed by Unocal(70%), British Borneo Petroleum (15%), and Seagull Energy (15%) forAlaminos Canyon Block 947. Unocal had the second highest bid on itsown, $31.02 million, and Vastar Resources had the third highest bidof $28.30 million.

A total of 323 blocks in depths of 200 meters or greaterreceived bids. The largest totals for all bids and for high bidswere for blocks in depths of 800 meters or more. High bids totaled$499.42 million for blocks in depths of 800 meters or more. Therewas $17.75 million in high bids in depths from 400 to 800 meters,$4.89 million in high bids in depths of 200 to 400 meters, and$31.38 million in depths less than 200 meters. This is the thirdsale in the western Gulf and the sixth sale overall in whichbidders on blocks in depths greater than 200 meters are eligiblefor deep-water royalty relief.

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