BOEM to Offer 15,000 Blocks in Gulf Oil and Gas Lease Sale

The Bureau of Ocean Energy Management published on June 25 a notice for an oil and gas lease sale in the Gulf of America covering roughly 80 million acres.

Lease Sale 262 will offer 15,000 unleased blocks ranging in water depths of 3 m to 3,400 m (9 ft to 11,115 ft). The blocks are 3 miles to 231 miles offshore across the Gulf’s Western, Central, and Eastern planning areas.

The sale, in the body of water formerly known as the Gulf of Mexico, is the first of three planned lease sales in the Gulf under the 2024–2029 Outer Continental Shelf Oil and Gas Leasing Program.

The lease sale bid reading is proposed for Dec. 10, 2025.

"To support robust industry participation, lower production costs, and unleash the full potential of the Gulf of America’s offshore energy reserves, BOEM is proposing a royalty rate of 16 ⅔ percent for both shallow and deepwater leases—the lowest rate for deepwater since 2007,” said BOEM’s Acting Regional Director for the GOA Laura Robbins.

The Bureau of Ocean Energy Management (BOEM) sets royalty rates for oil and gas leases in federal waters. BOEM has set a 12.5% royalty rate for shallow water leases (water depths less than 200 meters) and a 18.75% royalty rate for deepwater leases (water depths of 200 meters or more).

BOEM is also in the process of developing a new National Outer Continental Shelf Oil and Gas Leasing Program that will include additional leasing opportunities.

Planning for Sale 262 was announced in late December 2023 by the Interior Department.

The Gulf of America Outer Continental Shelf spans approximately 160 million acres and is estimated to contain around 48 Bbbl of undiscovered, recoverable oil and 141 Tcf of natural gas.

"Offshore oil and gas play a vital role in our nation's energy portfolio, with the Gulf of America supplying 14% of domestically produced oil," said Matt Giacona, BOEM’s principal deputy director. "This proposed lease sale demonstrates BOEM’s commitment to advancing American Energy Dominance and fostering the production of affordable, reliable energy resources for the nation.”

The Proposed Notice of Sale (Proposed NOS) notice of availability will be available for public inspection in the Federal Register on June 26 and will be officially published June 27.

The publication of the PNOS will initiate a 60-day comment period for the affected state governors and local governments.

Following the comment period, BOEM will issue a final notice of sale in the Federal Register at least 30 days before the scheduled public bid reading, which will be live streamed via Zoom.

National Ocean Industries Association (NOIA) President Erik Milito said Lease Sale 262 is a timely step that reaffirms the U.S.’s commitment to offshore energy leadership.

“It underscores the vital role the Gulf of America plays in providing affordable, reliable energy, supporting hundreds of thousands of good-paying jobs, and reinforcing our national security,” he said.