BOEM to offer 47 million acres in GoM in March

OE Staff Sep 15, 2016

The Bureau of Ocean Energy Management (BOEM) will offer approximately 47 million acres offshore Louisiana, Mississippi, and Alabama for oil and gas exploration and development in a lease sale that will include all available unleased areas in the Central Planning Area (CPA).

Proposed Central Gulf of Mexico Lease Sale 247 will include approximately 8878 blocks, located from 3-230mi offshore, in water depths ranging from nine to more than 11,115ft (3-3400m).

Sale 247 is scheduled to take place in New Orleans in March 2017, will be the 12th offshore sale under the The Obama Administration’s Outer Continental Shelf Oil and Gas Leasing Program for 2012-2017 (Five Year Program).

“As one of the most productive basins in the world, the Gulf of Mexico remains a critical component of the Administration’s domestic energy strategy to create jobs, foster economic opportunities, and reduce America’s dependence on foreign oil,” Abigail Hopper, BOEM director said. “The exploration and development of the Gulf of Mexico’s vital energy resources will continue to help power our nation and drive our economy.”

This sale builds on 11 sales, already held in the current Five Year Program, that have netted more than US$3 billion, and supports the Administration’s goal of continuing to increase domestic oil and gas production.

The proposed terms of this sale include conditions to ensure both orderly resource development and protection of the human, marine and coastal environments. These include stipulations to protect biologically sensitive resources, mitigate potential adverse effects on protected species and avoid potential conflicts associated with oil and gas development in the region.

BOEM’s proposed economic terms include a range of incentives to encourage diligent development and ensure a fair return to taxpayers. The terms and conditions outlined for Sale 247 in the Proposed Notice of Sale are not final. Different terms and conditions may be employed in the Final Notice of Sale, which will be published at least 30 days before the sale.

Last month, BOEM's first online lease sale, Lease Sale 248, only received bids for 24 offshore blocks out of 4399 available, and brought in a just over $18 million.

Image from BOEM.