|
The NewsRoom
Release: #3564
Date: November 27,
2006
Six
Companies Win RIK Crude 0il
Contracts
DENVER –
More than 12.7 million barrels of Royalty in Kind (RIK)
crude oil and condensate from Federal leases in the Gulf of
Mexico have been successfully sold to six companies as part
of an RIK sale, the Department of the Interior’s Minerals
Management Service (MMS) announced today. The Royalty in
Kind Program allows MMS to take its royalties “in kind,” in
the form of product, and competitively sell that product in
the open marketplace. The program continues 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.
The
contracts awarded approximately 12,710,700 barrels of crude,
or 53,615 barrels per day, and provide for delivery to begin
Jan. 1, 2007. The approximately 12.7 million barrels of
crude oil will convert to more than 521 million gallons of
petroleum products, including gasoline, diesel fuel, heating
oil, jet fuel, heavy fuel oil, Liquefied Petroleum Gas
(LPG), and other products.
“A
record number of 14 companies submitted aggressive bids on
the 34 packages offered,” said Johnnie Burton, Director of
the MMS, comparing this sale to the nine companies that
offered bids during an unrestricted RIK sale concluded in
August. “These RIK sales continue to generate very high
interest,” she added.
Those
companies that submitted winning bids include Chevron
Products Company, ConocoPhillips Company, Exxon Mobil Oil
Corp., Plains Marketing, Sempra, and Shell Trading Company.
The majority of contracts were for six-month terms, with one
contract awarded for 12 months.
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. Begun as a pilot program 10
years ago, the Royalty in Kind program has become a fully
operational program that demonstrates government can,
indeed, perform more like a private business and increase
receipts to the American public.
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
Privacy |
Disclaimers |
Accessibility |
Topic Index | FOIA
|