BP Plc share price steady, becomes the highest bidder for Gulf of Mexico drilling rights

BP Plc was reported as the highest bidder in the latest auction of acquiring drilling rights in the Gulf of Mexico. This happened less than a week after the US government lifted a 16-month ban on the company. BP was imposed a ban for signing contracts with the federal government in November 2012 after it pleaded guilty to deaths connected with the Deepwater Horizon disaster in 2010.

BP Plc was one of the most active players in the auction for about 24 oil and gas blocks. After completing the regulatory formalities, the company is said to become the fourth-largest buyer, which will pay 41.6 million dollars. The auction is expected to raise a total of 872 million dollars for the US government.

One of the analysts working for Price Executions Inc. – Chris Kettenmann commented the situation in a telephone interview that was cited by Bloomberg: “Cosmetically, this looks good for BP. But it’s not a needle-mover. Getting from yesterday’s sale to exploration to development is a long road map, and it could be a decade before they see any production out of this.”

BP Plc was reported to have made a total of 31 bids with an overall value of 53.8 million dollars. The records of the bureau point out that the 24 winning bids of the company are estimated to 41.6 million dollars. The bureau spokeswoman Caryl Fagot explained in an e-mailed statement that the high bids are to get an assessment by the US government officials.

One of BP Plcs spokesmen – Mr. Brett Clanton – made an official e-mailed statement, which was cited by Bloomberg: “BP is very pleased at the prospect of adding to our leading leasehold position in this key U.S. offshore region.”

The Chief Executive Officer of the company – Mr. Bob Dudley – has recognized the Gulf of Mexico as one of the “key regions” for the company. Over the last few years the company became more focused on the region and in 2012 even announced that an average of 4 billion dollars a year are planned to be invested in the region over the next decade.

BP Plc was almost unchanged on Wednesday and settled the session at 476.95 pence, down 0.01% on the day, marking a one-year change of +6.06%. The company is valued at 88.22 billion pounds.