The U.S. Department of the Interior’s third Gulf of America oil and gas lease sale generated $82.7 million in high bids, with 16 companies competing for offshore acreage.
Big Beautiful Gulf Lease Sale 3, or BBG3, was held Wednesday in New Orleans and received 69 bids covering 59 blocks. Total bids reached $99.5 million, according to Interior’s Marine Minerals Administration.
About 15,100 unleased blocks covering 80.4 million acres were offered across the Western, Central and parts of the Eastern Gulf planning areas. Available acreage extended from three to 231 miles offshore and from 9 ft to more than 11,100 ft of water depth.
The leases carry a 12.5% royalty rate, the minimum allowed under the Working Families Tax Cut Act.
BBG3 is the third of 30 Gulf of America lease sales required under the 2025 reconciliation law, which establishes a long-term offshore leasing schedule.
Acting MMA Director Matt Giacona said the sale continued the offshore leasing schedule directed by Congress.
The Gulf of America remains the main source of U.S. offshore oil and natural gas production. According to the American Petroleum Institute, the region accounts for about 14% of total U.S. crude oil production and 2% of natural gas production.
Interior estimates the broader Gulf Outer Continental Shelf covers about 160 million acres and contains 26.9 Bbbl of undiscovered, technically recoverable oil and 45.59 Tcf of natural gas.
American Petroleum Institute Vice President of Upstream Policy Holly Hopkins said the results reflected continued industry interest in long-term Gulf investment. National Ocean Industries Association President Erik Milito also highlighted the long development timelines associated with offshore energy projects and the role of a predictable leasing schedule in investment decisions.
Interior Secretary Doug Burgum said the sale forms part of the administration’s approach to expanding domestic offshore development.
MMA will review the bids before awarding leases and expects to release a final statistical summary within 90 days.
