Happy Thursday!
Well, the BBG1
lease sale was all the buzz this week.
We decided we should let you know how things turned out for the current administration’s
first mandatory lease sale and some of the winners.
Did anyone
happen to read gCaptain Daily Newsletter on December 11, 2025, their
article titled, “Trump Administration Completes First Gulf Lease Sale Under One
Big Beautiful Bill Act”? The article speaks
in regard to the U.S. Department of Interior’s Bureau of Ocean Energy
Management’s (BOEM) first oil and gas lease sale in the Gulf of America
(Mexico) under the direction from the Big Beautiful Bill Act (BBBA) called BBG1. The lease sale’s deadline was Tuesday, and the
results were live on Wednesday Morning, December 10. 219 bids were turned in for BBG1 from thirty
companies with a value of $371.9 million.
Of the 219 bids, 181 tracts covering
80 million acres in federal waters were leased for almost $280 million at a
12.5% royalty rate. The three top
bidders were BP, Chevron and Shell. This
lease sale was the first since 2023, and it was considered successful especially
in light of the current dismal prices of oil.
The returns from the BOEM’s lease sales help fund the U.S. Treasury,
Gulf Coast states, the Land and Water Conservation Fund and the Historic
Preservation Fund. Last year offshore leases
brought in $6.5 billion in royalties, nearly $373 million in bonuses and nearly
$123 million in rental fees. The BOEM
will have information on the specifics from BBG1 by the end of March 2026. If you would like to read more of
gCaptain’s article, please click the link: Trump Administration Completes First Gulf Lease Sale Under One Big Beautiful Bill Act.
If you would
like help in looking into how to update your midstream terminal, contact us via
email in the Blog and check out ESC's website for contact
information!
We hope you have a wonderful evening, and a great rest of
your week!
**Disclaimer: You may be charged a fee to read the gCaptain’s
article. **