Gulf of America offshore oil and gas lease sale nets nearly $83 million in high bids

The U.S. Department of the Interior announced Wednesday that its third Gulf of America offshore oil and gas lease sale, known as Lease Sale Big Beautiful Gulf 3 (BBG3), generated nearly $83 million in high bids. The sale took place at the National WWII Museum in New Orleans.

Fifty-nine blocks in federal waters were offered, with 16 companies submitting 69 bids totaling more than $99.4 million. Leading bidders included Murphy Exploration and Production with a high bid of $21.5 million, followed by Chevron USA at $15.6 million, and BP Exploration and Production at $11.4 million. Major companies such as Chevron, Shell, BP, Murphy, and Houston Energy participated in the auction.

The lease sale covered approximately 80.4 million acres across the Western, Central, and parts of the Eastern Gulf Planning Areas. Blocks ranged from 3 to 231 miles offshore and were located in water depths from 9 feet to over 11,100 feet. The Mississippi Canyon, Green Canyon, and Walker Ridge areas accounted for half of the 84 wells on record, according to the Bureau of Ocean Energy Management.

Lease terms include a 12.5% royalty rate, consistent with the minimum allowed under the Working Families Tax Cut Act. The Department of the Interior noted that the sale supports President Joe Biden’s executive order to expand offshore energy development and enhance national energy security.

The auction’s total high bids surpassed those from the March sale by $47 million but fell short of December’s $279.4 million in high bids. The department said the sale underscores ongoing investment in offshore oil and gas exploration along the Gulf of America.

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