(WO) — The Bureau of Ocean Energy Management (BOEM) has published a Proposed Notice of Sale (PNOS) for Lease Sale 262, the first of three offshore auctions in the Gulf of America under the 2024–29 Outer Continental Shelf Leasing Program.

The sale would offer about 15,000 unleased blocks—roughly 80 million acres—located 3 to 231 miles offshore in water depths from 9 ft to more than 11,100 ft.

“Offshore oil and gas play a vital role in our nation's energy portfolio, with the Gulf of America supplying 14 percent of domestically produced oil,” said Matt Giacona, BOEM’s principal deputy director. “This proposed lease sale demonstrates BOEM’s commitment to advancing American Energy Dominance and fostering the production of affordable, reliable energy resources for the nation.”

BOEM estimates the broader Gulf outer continental shelf holds about 48 billion barrels of undiscovered oil and 141 Tcf of natural gas. Leases awarded through Sale 262 would be limited to exploration and development; areas withdrawn by a 2020 presidential order, portions near the Eastern Gap and the Flower Garden Banks National Marine Sanctuary remain off-limits.

To encourage industry interest, the agency is proposing a 16 ⅔ percent royalty rate for both shallow- and deepwater tracts, the lowest deepwater rate since 2007. “To support robust industry participation, lower production costs, and unleash the full potential of the Gulf of America’s offshore energy reserves, BOEM is proposing a royalty rate of 16 ⅔ percent for both shallow and deepwater leases—the lowest rate for deepwater since 2007,” said Laura Robbins, acting regional director for the Gulf.

The PNOS appears in the Federal Register on June 27, opening a 60-day comment period for Gulf-state governors and local governments. BOEM expects to issue a Final Notice of Sale at least 30 days before the scheduled bid reading, now targeted for Dec. 10, 2025, which will be livestreamed.