While new exploration efforts in Brazil's active Santos
basin have been temporarily cut off, awaiting a governmental
decree
on the role that
Petrobras (NYSE: PBR) will play in future
activity in the area, the Gulf of Mexico has once again
become a center of deepwater interest. In some respects, it's
an area we all too often forget about in favor of more
glamorous locations like Brazil and, more recently,
Angola.
Admittedly, the shallow Gulf has become moribund, with far
fewer rigs working there than was the case a year ago. But
the deeper waters continue to generate interest. And in that
regard, Europe's
BP (NYSE: BP) is becoming a shining star --
but more on that later.
The most recent deepwater Gulf discovery occurred at the
tail end of last month when a group that included
Shell ,
Anadarko (NYSE: APC), and
StatoilHydro (NYSE: STO)
was successfulin the Mississippi Canyon in a little more
than 4,000 feet of water. The resulting well, called Vito, is
far deeper than anyone even considered when I was walking the
halls of an offshore drilling contractor.
Beyond that, the Minerals Management Service continues to
make additional tracts available to the producers through a
stream of lease sales. The latest -- just last week --covered
the Western Gulf and was something of a disappointment in
some quarters, generating only $115 million in high bids,
versus $484 million for a similar sale in 2008 corresponding
to a 50% drop in bidding companies. Interestingly, of the
tracts that received bids, 80% were deepwater oil plays.
Let's take a quick look at the high bidders in the sale
and the amount each expended:
 Company
Winning Bids
Total Spent (millions)
BP
37
$50.6
ConocoPhillips (NYSE: COP)
22
$15.2
Petrobras
 4
$10.0 Continued... |