NOIA Applauds News of Final Notice for Western Gulf Sale 218

 

For Immediate Release:                                   Contact:  Nicolette Nye

Thursday, November 10, 2011                                         (202) 347-6900

                                                                                                         (703) 732-0801

 

 

NOIA Applauds News of Final Notice for Western Gulf Sale 218

 

Washington, D.C. NOIA President Randall Luthi issued the following statement regarding the final notice of the Western Gulf Sale 218 today:   

 

“The final notice of Western Gulf of Mexico Sale 218 is welcome news. We commend the Bureau of Ocean Energy Management and its employees who have worked to get this sale back up and ready to go.  This sale will help gauge industry’s confidence in whether the current permitting process will allow buyers to actually develop the leases they purchase.  While there has been improvement in the time taken to approve certain exploration permits, there is still considerable concern over the length of time needed for approval of exploration plans.  Operators in the Gulf of Mexico are seriously concerned with getting approvals to fully develop existing leases where significant amounts of capital have already been invested and known production exists rather than risking capital on new leases that contain more onerous terms and carry additional risks. 

 

Additionally, it remains to be seen whether the increased costs of minimum bids will have an effect on the bidding. Companies could forego bidding on lesser known tracts and thus the Federal government will receive nothing, not bonus bids or rental fees, for tracts that might have generated interest in earlier sales.”

 

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NOIA is the only national trade association representing all segments of the offshore industry with an interest in the exploration and production of both traditional and renewable energy resources on the nation’s outer continental shelf.  NOIA’s mission is to secure reliable access and a fair regulatory and economic environment for the companies that develop the nation’s valuable offshore energy resources in an environmentally responsible manner. The NOIA membership comprises more than 270 companies engaged in business activities ranging from producing to drilling, engineering to marine and air transport, offshore construction to equipment manufacture and supply, telecommunications to finance and insurance, and renewable energy.