The Bureau of Ocean Energy Management (BOEM) has proposed to supply round 78 million acres in a region-wide lease sale within the Gulf of Mexico scheduled for November 2020.

BOEM mentioned on Thursday that the sale, set for 18 November
2020, would come with all accessible unleased areas in federal waters of the Gulf
of Mexico.

It is value noting that Lease Sale 256 was initially scheduled for August, however because of the have to conduct extra evaluation to think about current adjustments within the oil and gasoline markets, which have been due partially to the COVID-19 pandemic, the sale was moved to November.

Lease sale 256 map; Source: BOEM
Lease sale 256 map; Source: BOEM

Acting BOEM director Walter Cruickshank mentioned: “Domestic offshore oil and gasoline manufacturing performs an important function in strengthening our nation’s power safety. A powerful offshore power program gives inexpensive and dependable power and jobs Americans have to gas our financial system“.

Also, BOEM is providing a 10-year major time period in water
depths of 800 metres or deeper. The change implies that leases in water depths of
800 metres to 1,600 metres will begin with a major time period of 10 years, with out
the necessity to earn an extension of the first time period to attain the total 10 years.

Before 2010, BOEM’s predecessor company supplied Gulf of
Mexico lease gross sales with these phrases. However, in 2010 that was modified to a
7-year major time period which could possibly be prolonged for a further three years if the
lessee spudded a nicely inside the first 7 years.

After a cautious evaluation of the previous 10 years’ knowledge, for
Sale 256, BOEM is reverting to providing the 10-year major time period in these
particular water depths. Leases in 1,600 metres of water or deeper will proceed
to have the total 10-year time period as in prior gross sales.

Lease Sale 256 would be the seventh of the ten scheduled offshore
gross sales underneath the 2017-2022 Outer Continental Shelf (OCS) Oil and Gas Leasing
Program.

The Lease will embrace roughly 14,755, unleased
blocks, positioned from three to 371.7 kilometres offshore, within the Gulf’s Western,
Central, and Eastern planning areas in water depths starting from three to three,400
metres.

Excluded from the lease sale are blocks topic to the
congressional moratorium established by the Gulf of Mexico Energy Security Act
of 2006, blocks adjoining to or past the U.S. Exclusive Economic Zone within the
space often called the northern portion of the Eastern Gap, and complete blocks and
partial blocks inside the present boundaries of the Flower Garden Banks
National Marine Sanctuary.

The Gulf of Mexico OCS, masking about 160 million acres, is
estimated to include about 48 billion barrels of undiscovered technically recoverable
oil and 141 trillion cubic toes of undiscovered technically recoverable gasoline.

Revenues acquired from OCS leases – together with excessive bids,
rental funds, and royalty funds – are directed to the newly created
National Parks and Public Land Legacy Restoration Fund, in addition to to the U.S.
Treasury, the Land and Water Conservation Fund, the Historic Preservation Fund,
and sure Gulf Coast states.

BOEM has included fiscal phrases that have in mind market
situations and guarantee taxpayers obtain a good return to be used of the OCS. Terms
embrace a 12.5 per cent royalty charge for leases in lower than 200 meters of
water depth and a royalty charge of 18.75 per cent for all different leases issued underneath
the sale.

The submit BOEM to carry subsequent Gulf of Mexico lease sale in mid-November appeared first on Offshore Energy.

Read more at Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here