BOEM Advances 1st Two OBBBA Offshore Lease Sales

The Bureau of Ocean Energy Management (BOEM) announced, in a statement posted on its site recently, that it has advanced the first two One Big Beautiful Bill Act (OBBBA) offshore lease sales.

In the statement, BOEM said it released the Final Notice of Sale for Lease Sale Big Beautiful Gulf 1 (BBG1), which the organization highlighted is the first of 30 Gulf of America lease sales required by the OBBBA. BOEM also highlighted in the statement that it released the Proposed Notice of Sale for Big Beautiful Cook Inlet 1 (BBC1). This is the first of six lease sales in Alaska’s Cook Inlet required by the act, BOEM pointed out.

Lease Sale Big Beautiful Gulf 1 will make roughly 80 million acres available for leasing across the Gulf of America, BOEM noted in the statement, adding that the Gulf of America OCS “spans roughly 160 million acres, with an estimated 29.59 billion barrels of undiscovered, technically recoverable oil and 54.84 trillion cubic feet of natural gas”.

“Leases offered through BBG1 will support exploration and development of the Gulf of America OCS to unleash American energy dominance pursuant to Executive Order 14154 ‘Unleashing American Energy’,” BOEM said in the statement, which noted that certain areas are excluded, “including blocks withdrawn on September 8, 2020, blocks beyond the U.S. Exclusive Economic Zone in the Eastern Gap, and areas within the Flower Garden Banks National Marine Sanctuary”.

BOEM said in the statement that it has set a 12.5 percent royalty rate for both shallow and deepwater leases “to encourage strong industry participation”. That’s the lowest rate permitted by statute, BOEM highlighted.

The Final Notice of Sale will be published in the Federal Register on November 10, initiating a 30-day waiting period, BOEM said in the statement, adding that it will hold a public bid reading on December 10.

BOEM revealed in the statement that the Proposed Notice of Sale for BBC1 proposes to make approximately one million acres available for leasing in Alaska’s Cook Inlet. BOEM has set a 12.5 percent royalty rate for both shallow and deepwater leases here too.

The Proposed Notice will publish in the Federal Register on November 10, initiating a 60-day comment period for affected state governors and local governments, BOEM stated, adding that a Final Notice of Sale will follow, at least 30 days before the scheduled lease sale on March 4, 2026.

“President Trump’s signing of the One Big Beautiful Bill Act marked the beginning of a new chapter for oil and gas development in the Gulf of America and Alaska’s Cook Inlet,” BOEM Acting Director Matt Giacona said in the statement.

“BOEM is now moving forward with a predictable, congressionally mandated leasing schedule that will support offshore oil and gas development for decades to come,” he added.

In a statement sent to Rigzone, National Ocean Industries Association (NOIA) President Erik Milito said, “moving ahead with the first lease sales under the One Big Beautiful Bill Act gives companies the certainty they need to invest, which sustains jobs and strengthens U.S. energy and national security”.

“In the global competition for energy, the Gulf of America provides among the lowest carbon intensity barrels for purposes of supplying the U.S. economy and our allies with a secure source of energy,” he added.

“These lease sales have an impact across the country. Offshore energy supports workers and supply chains in every state, and the revenues generated fund programs like the Land and Water Conservation Fund, delivering resources to coastal and urban communities nationwide,” he went on to state.

In a statement posted on BOEM’s site on August 22, BOEM said it had finalized the environmental review for Gulf of America offshore energy development.

A statement posted on the U.S. Department of the Interior’s website on August 19 announced that the DOI was “rolling out a long-term schedule for offshore oil and gas lease sales in the Gulf of America and Alaska’s Cook Inlet, as directed by the One Big Beautiful Bill Act (H.R. 1)”.

“By committing to a predictable sale schedule, the Department is delivering on President Trump’s promise to expand American energy production and strengthen U.S. energy independence,” that statement added.

The Department of the Interior’s BOEM “manages development of U.S. Outer Continental Shelf energy, mineral, and geological resources in an environmentally and economically responsible way”, BOEM’s latest statement notes. NOIA notes in its statement that it “represents and advances a dynamic and growing offshore energy industry”.

To contact the author, email andreas.exarheas@rigzone.com