Gulf of Mexico lease sale draws just under $47 million in high bids
The BBG2 lease sale for drilling rights in the US Gulf of Mexico resulted in $46.98 million in high bids from oil and gas companies, the US Bureau of Ocean Energy Management said Mar. 11.
Results of BBG2, the second of 30 US Gulf lease sales required under the One Big Beautiful Bill Act (OBBBA), stand in contrast to the most recent lease sale held in December 2025 (BBG1) that drew $279.4 million in apparent high bids. BOEM applied a 12.5% royalty rate for both shallow and deepwater leases.
On offer were 15,019 unleased blocks covering about 80.4 million acres on the US Outer Continental Shelf. The blocks lie 3-231 miles offshore, spanning water depths from 9 ft to more than 11,100 ft.
BOEM received a total of 38 bids totaling $69.8 million from the 13 companies participating. Twenty five blocks spanning 140,753 acres received high bids.
The majority of the blocks that received bids—18 of 25—were for those in deep water of 800-1,600 m. Four blocks in ultradeep waters over 1,600 m received bids.
BP Exploration & Production Inc. submitted the lease sale’s highest bid—a $21-million bid for Block 404 in the Green Canyon area. Chevron followed with a submission of $5.89 million for Green Canyon Block 492.
The deepest block to receive a bid was Walker Ridge Block 751 in 2,660 m of water. Woodside Energy (Deepwater) Inc. bid $806,290 for the block.
BOEM said Anadarko US Offshore LLC submitted the most high bids with 6 for a total of $4.01 million. LLOG Exploration Offshore LLC took second place with 5 high bids totaling $2.15 million. Houston Energy LP also had 5 total high bids for a total of $1.16 million.
The top three companies based on the sum of high bids submitted are BP Exploration & Production Inc. with high bids totaling $22.56 million, Chevron USA Inc. with $11.48 million, and Anadarko US Offshore LLC with $4.01 million.
BOEM said the Gulf of America Outer Continental Shelf spans about 160 million acres and is estimated to contain 29.59 billion bbl of undiscovered, technically recoverable oil and 54.84 tcf of natural gas.
BOEM expects to hold the third offshore oil and gas lease sale under OBBBA, BBG3, on Aug. 12, 2026.
About the Author
Mikaila Adams
Managing Editor, Content Strategist
Mikaila Adams has 20 years of experience as an editor, most of which has been centered on the oil and gas industry. She enjoyed 12 years focused on the business/finance side of the industry as an editor for Oil & Gas Journal's sister publication, Oil & Gas Financial Journal (OGFJ). After OGFJ ceased publication in 2017, she joined Oil & Gas Journal and was later named Managing Editor - News. Her role has expanded into content strategy. She holds a degree from Texas Tech University.