Third Gulf of America oil and gas lease sale pulls in nearly $83 million in high bids

• The Department of Interior’s latest sale brought in $47 million more in high bids than in March. However, it was less than the $279.4 million from the December sale.

Operators continue to invest in offshore oil and gas exploration along the Gulf of America Outer Continental Shelf.

The U.S. Department of the Interior announced Wednesday that the Marine Minerals Administration’s Lease Sale Sizeable Beautiful Gulf 3 (BBG3) generated $82,689,756 in high bids for 59 blocks in federal waters of the Gulf of America.

Sixteen companies submitted 69 bids totaling $99,476,285. While Chevron USA and BP Exploration and Production came in second and third with high bids of $15.6 million and $11.4 million, respectively.

MMA offered approximately 15,100 unleased blocks covering roughly 80.4 million acres across the Western, Central and portions of the Eastern Gulf Planning Areas.

The blocks are located from 3 to 231 miles offshore in water depths ranging from 9 feet to more than 11,100 feet.

The lease terms include a 12.5% royalty rate for blocks in all water depths, consistent with the minimum allowed under the Working Families Tax Cut Act.

The sale was held at the National WWII Museum in New Orleans. It was the third Gulf of America offshore oil and gas lease sale required under the Working Families Tax Cut Act.

MMA’s latest sale brought in $47 million more in high bids than in the March lease sale. However, it was less than the $279.4 million from the December sale.

The Department of Interior said Lease Sale BBG3 supports Trump’s Executive Order 14154, Unleashing American Energy. It outlines the President’s commitment to expanding offshore oil and gas development to strengthen national energy security, lower energy costs and rise American competitiveness.