The NewsRoom Release:
#3534
Date: August 21, 2006
RIK
Crude Oil Sale Nets New Contracts
Deliveries to Begin in October
DENVER
– More than 8.5 million barrels of Royalty in Kind (RIK) crude
oil from the Gulf of Mexico and Pacific Ocean have been sold
to seven companies as part of an unrestricted sale conducted
by the Department of the Interior’s Minerals Management
Service (MMS).
The contracts
announced today, for a total of approximately 8,577,500
barrels of crude, or 47,000 barrels per day, are for six-month
terms with delivery scheduled to begin October 1, 2006. The
8.5 million barrels of crude oil will convert to more than 350
million gallons of petroleum products, including gasoline,
diesel fuel, heating oil, jet fuel, heavy fuel oil, Liquefied
Petroleum Gas (LPG), and other products.
Those
companies that submitted winning bids include Chevron Products
Company, Shell Trading Company, ExxonMobil Oil Corp., Plains
Marketing, Marathon Petroleum Company, Citadel Energy
Products, and ConocoPhillips Company.
The oil sold in the unrestricted sale involves
an aggregation of crude oil royalties taken “in kind,” in the
form of oil, rather than in value or cash payments, from
offshore Federal leases in the Gulf of Mexico and the Pacific
Ocean off the coast of California. The oil is then sold
competitively in the open marketplace. The Royalty in Kind
program aims to improve government efficiencies, reduce
regulatory costs and reporting requirements, shorten the
compliance cycle, and return a fair value on the public’s
royalty assets.
Relevant Web Site:
MMS Main Website
Media
Contact:
Patrick Etchart
303-231-3162
MMS:
Securing Ocean Energy & Economic Value for
America U.S. Department
of the Interior
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