New seismic data that could lead to deepwater hydrocarbon finds is believed to have spurred heightened bidding activity surrounding the Alaminos Canyon block in the western Gulf of Mexico (GOM).

The block, near Shell's Perdido production hub, captured not only the highest number of bids but also the highest bid during the latest GOM lease sale, which fetched about $145 million in total bids, the Bureau of Ocean Energy Management (BOEM) said in late August. The data, released last summer by WesternGeco, provides better subsalt images, which are believed to have generated renewed interest in the area, BOEM GOM regional director John Rodi said

“We believe that [these] new data did provide a much better image of the prospectivity of the blocks that were part of this survey area,” Rodi said.

Four companies submitted bids for the block, but ConocoPhillips came in with the highest bid, of about $30.2 million. The company submitted 21 bids totaling more than $51 million, more than any other company participating in the sale.

In all, 12 companies submitted bids on only 53 of the more than 3,860 blocks offered for oil and gas development during the sale, described by Rodi as predominately deepwater in terms of results. Of the bids submitted, only four were received on blocks in shallow water of less than 656 feet.

The sale generated about $102 million in high bids.

—Velda Addison

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