(WO) — The U.S. Department of the Interior’s third Gulf of America/Mexico oil and gas lease sale generated $82.7 million in high bids, with 16 companies competing for offshore acreage as the Trump administration moves forward with a congressionally mandated series of Gulf lease sales.
Big Beautiful Gulf Lease Sale 3 (BBG3), held Wednesday in New Orleans, received 69 bids on 59 blocks, with total bids reaching $99.5 million, according to Interior’s Marine Minerals Administration (MMA).
The sale offered approximately 15,100 unleased blocks covering 80.4 million acres across the Western, Central and portions of the Eastern Gulf planning areas. Available acreage ranged from three to 231 miles offshore and from 9 ft to more than 11,100 ft of water depth.
All 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, establishing a long-term leasing schedule intended to provide greater certainty for offshore investment.
“Lease Sale BBG3 reflects MMA’s continued work to provide the predictable offshore leasing schedule Congress directed and industry needs to make long-term investment decisions,” Acting MMA Director Matt Giacona said.
The Gulf of America remains the primary source of U.S. offshore oil and natural gas production. According to the American Petroleum Institute (API), the region accounts for about 14% of total U.S. crude oil production and 2% of natural gas production.
The broader Gulf Outer Continental Shelf spans approximately 160 million acres and is estimated by Interior to contain 26.9 Bbbl of undiscovered, technically recoverable oil and 45.59 Tcf of natural gas.
Industry groups welcomed Wednesday’s results as a sign of continued interest in long-term Gulf development.
“Today’s third successful Gulf of America lease sale is another vote of confidence in American energy and reflects the long-term investment certainty Congress and Secretary Burgum have restored,” said Holly Hopkins, API vice president of upstream policy. “At a time of global energy disruption, our industry is continuing to invest in the future supply America and our allies will depend on for decades to come.”
National Ocean Industries Association (NOIA) President Erik Milito similarly emphasized the long development timelines associated with offshore projects.
“Offshore energy is a long-term business,” Milito said. “The energy Americans rely on depends on the leasing and investment decisions we make today. A predictable leasing program gives companies the confidence to invest billions of dollars in projects that will sustain domestic production, strengthen supply chains, and reduce reliance on foreign energy.”
Interior Secretary Doug Burgum said the sale advances the administration’s strategy of expanding domestic offshore development to support U.S. energy security and production.
MMA will review the bids before awarding leases and expects to release a final statistical summary within 90 days.
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