The Bureau of Ocean Energy Management on Thursday announced a proposed U.S. Gulf offshore oil and gas lease sale scheduled for Aug. 12, 2026.
The proposed sale, known as Lease Sale Big Beautiful Gulf 3 (BBG3), is the third of 30 oil and gas lease sales required by the One Big Beautiful Bill Act (Public Law No. 119-21). The legislation, signed into law in 2025, mandates regular offshore lease sales in the Gulf of Mexico — renamed the Gulf of America by the Trump administration — and provides significant funding for Coast Guard modernization and other maritime programs.
The Trump administration has sharply reversed the Biden administration's offshore leasing approach. The Biden administration held only one Gulf of Mexico lease sale during its tenure and paused new leasing in other areas, while the One Big Beautiful Bill Act mandates 30 lease sales and restores leasing in previously restricted areas.
"Lease Sale BBG3 marks another major milestone in the Gulf of America," said BOEM Acting Director Matt Giacona. "Building on the momentum of BBG1 and BBG2, this proposed sale reinforces BOEM's commitment to regular offshore leasing as required under the One Big Beautiful Bill Act. By offering leases with a competitive 12.5% royalty rate, BBG3 sends a clear signal that the era of regulatory uncertainty is behind us, and a new phase of responsible energy leadership has begun."
The sale proposes to offer approximately 15,066 unleased blocks covering 80.4 million acres on the U.S. Outer Continental Shelf in the Gulf of Mexico. The blocks are located 3 to 231 miles offshore and span water depths from 9' to more than 11,100'.
The Gulf of Mexico Outer Continental Shelf spans approximately 160 million acres and is estimated to contain 29.59 billion barrels of undiscovered, technically recoverable oil and 54.84 trillion cubic feet of natural gas, according to BOEM.
Certain areas will be excluded from the sale, including blocks subject to the Sept. 8, 2020, presidential withdrawal, blocks adjacent to or beyond the U.S. Exclusive Economic Zone in the Eastern Gap, and blocks within the boundaries of the Flower Garden Banks National Marine Sanctuary.
Outer Continental Shelf oil and gas activities generate billions of dollars from lease sales, rental fees, and royalties. Funds are distributed to the U.S. Treasury and to states through revenue-sharing programs that fund coastal restoration and hurricane protection projects.
The Proposed Notice of Sale will be published in the Federal Register on Feb. 20, initiating a 60-day comment period for affected state governors and local governments. Following review of governor input, BOEM will publish a final notice of sale in the Federal Register at least 30 days prior to the Aug. 12 sale date.
