The U.S. Department of the Interior’s Minerals ManagementService (MMS) doesn’t expect Sale 172 in the Central Gulf of Mexico(GOM) scheduled for March 17, 1999 in New Orleans to set anyrecords.

“We understand that the recent fall in world oil prices hasdrastically affected the capital available for exploration andproduction in the U.S., and we anticipate a reduction in both thelevel of bidding and the number of companies participating in thisupcoming lease sale,” said MMS Deputy Director Tom Kitsos.

“This is the fourth annual Central Gulf of Mexico sale in whichblocks in depths of 200 meters or more are eligible for royaltyrelief under the Deep Water Royalty Relief Act,” he said, addingthat royalty relief has contributed to an unprecedented level ofnew activity in the Gulf.

In this sale, there are 2,970 deep-water blocks. The finalNotice of Sale published in the Feb. 12 Federal Register covers3,807 available blocks encompassing about 20.37 million acres inthe Central GOM Outer Continental Shelf (OCS) Planning Areaoffshore Louisiana, Mississippi, and Alabama.

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