May 20 (Reuters) – Devon Energy accounted for more than half of a record $4 billion sale of oil and gas drilling rights on federal lands in New Mexico and Texas held by the Trump administration on Wednesday, according to the U.S. Bureau of Land Management.
The sale’s total obliterated that of all previous onshore government oil and gas auctions at a time when the Iran war has cut global supplies and raised demand for U.S. crude oil.
The prior record sale was $972 million in 2018.
The Interior Department said the sale reflected strong industry demand for drilling on public lands.
“This over $4 billion lease sale is another sign that President Trump’s American Energy Dominance Agenda is delivering results,” Interior Secretary Doug Burgum said in a statement. “By cutting costs and removing barriers to development, we are unleashing American energy, strengthening national security, creating jobs and generating significant revenue for taxpayers and local communities.”
The sale of 74 parcels covered 33,530 acres, primarily in New Mexico’s Permian basin, the nation’s most productive oil field.
Devon, which is based in Oklahoma City, won 25 parcels with total bonus bids worth $2.5 billion, according to sale results posted on a government website. A company spokesperson was not immediately available for comment.
Federal Abstract Company, a land services firm, was the second-biggest auction participant with total bids of $1.1 billion for five parcels.
Other sale participants included Buffalo Frontier LLC, Veer Capital Partners LLC and Ridge Runner II Nominee Corp.
Devon paid the highest-ever price for a single parcel -$405.8 million for 1,280 acres in Lea County. It also paid the highest-ever price per acre – $357,129 – for a 640-acre parcel, also in Lea County.
(Reporting by Nichola Groom; Editing by Mark Porter and Nia Williams)
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