The US Bureau of Ocean Energy Management plans to hold a Gulf of Mexico-wide oil and gas lease sale in November that will include all available unleased areas in federal waters—some 14,755 blocks—covering about 78.8 million acres.
Lease Sale 256 was originally scheduled for August, but “due to the need to conduct additional analysis to consider recent changes in the oil and gas markets, which were due in part to the COVID-19 pandemic,” BOEM said, the sale was rescheduled.
Fiscal terms include a 12.5% royalty rate for leases in less than 200 m (656 ft) of water, and a royalty rate of 18.75% for all other leases issued pursuant to the sale, in recognition of current hydrocarbon price conditions and the marginal nature of remaining Gulf of Mexico shallow-water resources.
Excluded from the lease sale are blocks subject to the congressional moratorium established by the Gulf of Mexico Energy Security Act of 2006; blocks adjacent to or beyond the US 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.
This will be the seventh offshore sale in the Department of Energy’s Outer Continental Shelf 2017-22 program.
BOEM estimates the upcoming sale contains 48 billion bbl of undiscovered technically recoverable oil and 141 tcf of undiscovered technically recoverable gas.
All terms and conditions for Lease Sale 256 are available on the BOEM website. Due to the COVID-19 pandemic, bids are only being accepted by mail.