The US Bureau of Ocean Energy Management (BOEM) will offer more than 21 million acres offshore Texas for oil and gas exploration and development in a lease sale that will include all available unleased areas in the Western Gulf of Mexico planning area, Director Tommy P. Beaudreau announced on 15 April 2014.
Western Gulf of Mexico Lease Sale 238 will include approximately 3992 blocks, covering roughly 21.4 million acres, located from nine to 250mi offshore, in water depths ranging from 16 to 10,975ft (5-3346m). BOEM plans to offer blocks located, or partially located, within the three statute mile US-Mexico Boundary Area subject to the terms of the US-Mexico Transboundary Hydrocarbon Agreement.
“Energy development in the transboundary area will generate good jobs, much welcomed energy production, and more revenue to the government," said API Spokesman Brian Straessle to OE. "We're pleased that BOEM will offer these areas in the next lease sale and create potential opportunities to collaborate on deep water projects with Mexico.”
Industry group National Ocean Industries Association (NOIA) echoed that sentiment to OE, as well. "Industry’s consistent commitment to the US Gulf of Mexico is evident, and interest in deepwater tracts remains strong," said Nicolette Nye, spokesperson for NOIA. "The offerings in the transboundary area are exciting, not just because of the potential to work bi-laterally with Mexico, but also because of the good paying jobs, revenue, and reliable and affordable energy that development in the area would bring to the US."
BOEM estimates the proposed lease sale could result in the production of 116-200MMbo and 538-938Bcf of natural gas.
“As one of the most productive basins in the world, this lease sale is another important step to promoting responsible domestic energy production through the safe, environmentally sound development of the Nation’s offshore energy resources,” said Beaudreau. “The decision to move forward with this lease sale follows extensive environmental analysis, public input and consideration of the best scientific information available.”
Lease Sale 238 – scheduled to take place in New Orleans, Louisiana, this August – will be the sixth offshore sale under the Obama administration’s Outer Continental Shelf Oil and Gas Leasing Program for 2012-2017 (Five Year Program). This sale builds on the first five sales in the current five-year program, which have offered more than 60 million acres and netted approximately $2.3 billion.
Last month's Gulf of Mexico lease Sale 231received 380 bids on 19 Mar 2014, for 326 blocks in the central Gulf of Mexico, totaling more than US$850 million, according to BOEM. The sale comprised 7511 unleased blocks in acreage about 3230mi offshore Louisiana, Mississippi, and Alabama.
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