facebook
twitter
rss
account
search
search
 

Gulf leases could hit snag in U.S.

Sept. 21, 2011 at 8:14 AM   |   Comments

WASHINGTON, Sept. 21 (UPI) -- A small fraction of the blocks up for auction in the Gulf of Mexico could be held up by border talks between the United States and Mexico, an official said.

The United States and Mexico started formal negotiations to draft standards for safe drilling of oil and natural gas reserves that straddle their shared maritime border.

Michael Bromwich, director of the Bureau of Ocean Energy Management, Regulation and Enforcement, said around 166 of the 3,900 blocks expected to be auctioned this year could be held up by the process.

"We're still hopeful that we can reach an agreement by the end of this year," he was quoted by the Platts news service as saying. "Because that looms out there as a possibility, we needed to figure out how to deal with the small number of lease blocks that would be implicated by a transboundary reservoir."

The BOEMRE said it would keep the bids for blocks 3 nautical miles from the Mexican border sealed until both countries reach agreement.

Bromwich told Platts the potential snag developed because a lease sale and a treaty with Mexico were developing along separate courses within the agency.

© 2011 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Featured UPI Collection
trending
2014: The Year in Music [PHOTOS]

2014: The Year in Music [PHOTOS]

Most Popular
1
City of London Police get Kaspersky Lab training
2
Brazil assessing capabilities of Russian air defense system
3
U.S. Navy receives first low-rate production RAM Bock 2 missile
4
Zephyr 7 UAS chalks up new achievement
5
France receives upgraded aerial tanker
Trending News
Video
x
Feedback