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October 26, 2017

US to lease 76.9 million acres in Gulf of Mexico

The US Government is planning to lease a 76.9 million acres area within the Gulf of Mexico, offshore Texas, Louisiana, Mississippi, Alabama, and Florida.

The US Government is planning to lease a 76.9 million acres area within the Gulf of Mexico, offshore Texas, Louisiana, Mississippi, Alabama, and Florida.

The proposed Lease Sale 250 is scheduled for March next year and comprises all available unleased areas on the Gulf of Mexico’s Outer Continental Shelf.

US Secretary of the Interior Ryan Zinke said: “In today’s low-price energy environment, providing the offshore industry access to the maximum amount of opportunities possible is part of our strategy to spur local and regional economic dynamism and job creation and a pillar of President Trump’s plan to make the United States energy dominant.

“And the economic terms proposed for this sale include a range of incentives to encourage diligent development and ensure a fair return to taxpayers.”

“The economic terms proposed for this sale include a range of incentives to encourage diligent development and ensure a fair return to taxpayers.”

It will be the second offshore sale under the National Outer Continental Shelf Oil and Gas Leasing Program for 2017-22.

Alongside rental payments and high bids, the department will receive royalty payments from any future production from the proposed leases.

Lease Sale 249 received $121m in high bids when it was held in New Orleans in August last year.

The latest Lease Sale 250 includes 14,375 unleased blocks, which are all situated in the Gulf’s Western, Central and Eastern planning areas in water depths ranging between 3m and 3,400m.

The estimated amount of resources that can be recovered from the proposed region-wide lease sale ranges from 210 million to 1.12 billion barrels of oil and from 55 billion to 4.42 trillion cubic feet of gas.

The final notice of sale is expected to be published at least 30 days before the sale.

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