The US Bureau of Ocean Energy Management (BOEM) has offered approximately 78 million acres for a region-wide lease sale, which was scheduled for 18 November, 2020.
The US Bureau of Ocean Energy Management (BOEM) has offered approximately 78 million acres for a region-wide lease sale, which was scheduled for 18 November, 2020. The sale will include all available unleased areas in federal waters of the Gulf of Mexico.
In addition, BOEM is offering a 10-year primary term in water depths of 800 m or deeper. The change means that leases in water depths of 800 m to 1600 m licensees will no longer need to earn an ‘extension’ of the primary term to achieve the full 10 years.
‘After a careful analysis of the past 10 years’ data, for Sale 256, BOEM is reverting to offering the 10-year primary term in these specific water depths,’ said BOEM in a statement. ‘Leases in 1600 m of water or deeper will continue to have the full 10-year term as in prior sales.’
Lease Sale 256, which will include approx. 14,755, unleased blocks, will be the seventh offshore sale under the 2017- 2022 Outer Continental Shelf (OCS) Oil and Gas Leasing Programme.
Meanwhile, the timeframe for decisions on an Application for Permit to Drill (APD) and an Application for Permit to Modify (APM) has been extended. Under the current practice, the Bureau of Safety and Environmental Enforcement (BSEE) issues more than 90% of APMs and APDs in under 70 days. BSEE now has 75 days to approve an APD or APM. ‘This change is being made to facilitate efficient exploration and development of a lease area, consistent with all current practices pertaining to safety and environmental laws,’ said BOEM.
Earlier this year, Lease Sale 254 generated $93 million in high bids.
