The 21 blocks - leased out under the Gulf of Mexico Central Lease Sale 190 by the Minerals Management Service (MMS) of the USA - represents Woodside's largest single lease round awards. Its farm in deal with Pioneer encompassed 47 blocks, but was not acquired under a bidding round.

In a statement released to the media, Woodside said, "Woodside has focused on the Gulf of Mexico as a key area of growth for its international exploration and production activities since 1999. The company's business plan for the Gulf of Mexico sees participation in lease sales as a key element to asset and portfolio growth."

"If all the high bids are approved by the MMS, it will bring the total Woodside holding in the Gulf of Mexico to 150 blocks, of which 52 will be on the shelf and 98 in the deepwater," added the Perth-based company. The bid has yet to be ratified by MMS.

Woodside - and bid partners Marathon Oil Company, ConocoPhillips and Pioneer Natural Resources - had originally bid for 24 blocks. Under the agreement agreed upon by all partners concerned, the Perth company will hold a 45% to 50% working interest in each of the 21 blocks and the net cost to Woodside is expected to be US$4.2 million.

Woodside, with partners, bid on 24 blocks of which 4 are on the Louisiana shelf and 20 are in the deepwater. If all 21 high bids are approved the net cost to Woodside will be US$4.2 million.