A total of 316 leases were awarded to 40 companies in Western Gulf of Mexico lease sale 184, the Minerals Management Service reported Thursday. Valid bids totaled $148.6 million, with five-year leases on shallow-water tracts (in water depths up to 655 feet) attracting the most bids (44%) partly because the MMS now has a royalty relief provision for 20 Bcf of deep gas production (greater than 15,000 feet) in shallow shelf waters.

About 18% of the accepted bids were for deepwater fields (2,624-5,248 feet deep) with lease terms of 10 years. Ultra deepwater tracts, 5,249 feet or deeper, attracted 22% of the bids under 10-year terms.

The highest bid accepted on a tract was a bid of $8.4 million by Dominion Exploration and Nexen Petroleum for Garden Banks Block 337. Garden Banks Block 337 is a block that received bids that were rejected in the Western Gulf of Mexico Sale last year. The second highest bid in the sale was $5.9 million by Shell Offshore for Garden Banks Block 338, and the third highest bid was a bid of $5.7 million by Shell Offshore for Alaminos Canyon Block 432. The highest bid and second highest bid in the sale were in the water depth interval of 400 to 799 meters (1,312 to 2,623 feet), and the third highest bid in the sale was in the water depth interval of 1,600+ meters (5,249 feet).

Kerr-McGee Corp. the most tracts with 45. Amerada Hess Corp. leased 42 tracts. Pioneer Natural Resources Co. took 40, and Royal Dutch/Shell Group’s Shell Offshore Inc. leased 34 blocks, among others.

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