DENVER – More
than 16.1 million barrels of Royalty in Kind (RIK) crude oil from
Federal leases in the Gulf of Mexico have been sold to four companies
as part of an RIK sale, the Department of the Interior’s Minerals
Management Service (MMS) announced today.
The sale is expected to gross a total
$1,897,000,000, based on today’s energy prices.
Winning bidders are Chevron Products
Company, ExxonMobil Oil Corp., Sempra Energy Trading, and Shell
Trading.
The contracts involve an aggregation of
crude oil royalties taken "in kind," in the form of oil, rather than
"in value" or cash payments, from federal offshore lease operators in
the Gulf of Mexico. The six-month contracts call for delivery of the
oil to begin July 1, 2008.
Begun as a pilot program more than 10
years ago, the Royalty in Kind program is designed to ensure a fair
return on the public’s royalty assets, improve government
efficiencies, reduce regulatory costs and reporting requirements, and
shorten the compliance cycle.
Contact:
Blossom
Robinson 202-208-3985
MMS: Securing Ocean Energy & Economic Value for America
U.S. Department of the Interior
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Last Updated:
05/27/2008,
04:19 PM
Central Time
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