BOEM to Hold Central Gulf of Mexico Oil and Gas Lease Sale
As part of President Obama’s all-of-the-above energy strategy to continue to expand safe and responsible domestic energy production, the Bureau of Ocean Energy Management (BOEM) announced that it will hold Gulf of Mexico Central Planning Area (CPA) oil and gas lease sale 231 in New Orleans on March 19, 2014.
The sale is the second CPA lease sale and the fourth overall sale under the 2012 – 2017 Outer Continental Shelf Oil and Natural Gas Leasing Program. The auction will offer 39 million acres offshore Louisiana, Mississippi, and Alabama, include all available unleased areas in the CPA.
“The Central Gulf of Mexico is one of the most prospective and productive basins in the world, and this proposed sale continues the Administration’s all-of-the-above strategy to increase safe and responsible domestic energy production,” said BOEM Director Tommy P. Beaudreau.
Central Gulf Lease Sale 227 held last March netted $1.2 billion in bonus bids, demonstrating the offshore oil and gas industry’s strong commitment to the Gulf of Mexico. This proposed CPA lease sale encompasses approximately 7,508 unleased blocks covering approximately 39.4 million acres. The blocks are located from three to about 230 miles offshore, in water depths ranging from 9 to more than 11,115 feet (3 to 3,400 meters). BOEM estimates the proposed lease sale could result in the production of 1 billion barrels of oil and 4 trillion cubic feet of natural gas.
The sale sets fiscal terms that will continue to ensure fair return to taxpayers and includes conditions to encourage diligent development as well as ensure an appropriate balance of orderly resource development with protection of the human, marine and coastal environments.
Press Release, October 28, 2013; Image: DOI