The U.S. Bureau of Ocean Energy Management (BOEM) said it will offer more than 78 million acres for oil and gas drilling as part of a regionwide Gulf of Mexico lease sale set for March 18.
Terms include a 12.5% royalty rate for leases in less than 200 meters of water depth and a royalty rate of 18.75% for all other leases issued.
The sale, which will be live streamed from New Orleans, includes all available unleased areas in federal waters. It, however, excludes blocks subject to the congressional moratorium established by the Gulf of Mexico Energy Security Act of 2006; blocks adjacent to or beyond the U.S. Exclusive Economic Zone in the area known as the northern portion of the Eastern Gap; and whole blocks and partial blocks within the current boundaries of the Flower Garden Banks National Marine Sanctuary, BOEM said in a news release.
“The Gulf of Mexico continues to be one of the most productive basins in the world and is an essential part of our nation’s domestic energy portfolio,” Director of BOEM’s New Orleans office Mike Celata said in the release.
Spanning about 160 million acres, the Gulf of Mexico Outer Continental Shelf is estimated to contain about 48 billion barrels of undiscovered, technically recoverable oil and 141 trillion cubic feet of undiscovered, technically recoverable gas, BOEM said.
Recommended Reading
US Drillers Cut Oil, Gas Rigs for Fifth Week in Six, Baker Hughes Says
2024-09-20 - U.S. energy firms this week resumed cutting the number of oil and natural gas rigs after adding rigs last week.
Western Haynesville Wildcats’ Output Up as Comstock Loosens Chokes
2024-09-19 - Comstock Resources reported this summer that it is gaining a better understanding of the formations’ pressure regime and how best to produce its “Waynesville” wells.
August Well Permits Rebound in August, led by the Permian Basin
2024-09-18 - Analysis by Evercore ISI shows approved well permits in the Permian Basin, Marcellus and Eagle Ford shales and the Bakken were up month-over-month and compared to 2023.
Kolibri Global Drills First Three SCOOP Wells in Tishomingo Field
2024-09-18 - Kolibri Global Energy reported drilling the three wells in an average 14 days, beating its estimated 20-day drilling schedule.
Permian Resources Closes $820MM Bolt-on of Oxy’s Delaware Assets
2024-09-17 - The Permian Resources acquisition includes about 29,500 net acres, 9,900 net royalty acres and average production of 15,000 boe/d from Occidental Petroleum’s assets in Reeves County, Texas.