The third offshore oil and gas lease sale, known as "Big Beautiful" Gulf Sale 3 (BBG3), organized by the Trump administration, raised a total of $82.7 million in high bids on Wednesday. This sale shows improvement over the weak auction held in March but remains significantly lower than the first sale conducted late last year.
BBG3 received 69 bids from 16 different companies, covering 59 blocks in the federal waters of the Gulf of Mexico. Overall, the total bids for the sale reached $99.5 million, according to the Department of the Interior.
This sale is a significant improvement from the previous BBG2 auction in March, which brought in just $46.98 million from 13 companies for 25 blocks. That auction saw reduced bidding despite rising oil prices due to ongoing conflicts in the Middle East.
However, participation in this sale is still much lower than the very first auction in the program from December 2025, which achieved $279.4 million in high bids for 181 blocks, with 30 companies submitting 219 bids that totaled $371.9 million.
The sale took place at the National WWII Museum in New Orleans and is the third auction in the Gulf required under President Trump’s Working Families Tax Cut Act.
Acting Marine Minerals Administration Director Matt Giacona stated, “Lease Sale BBG3 shows our continued efforts to provide a reliable offshore leasing schedule that Congress has directed and that the industry needs for long-term investments.”
The administration made around 15,100 unleased blocks available, covering a total of 80.4 million acres across the Western, Central, and parts of the Eastern Gulf planning areas. These blocks are located between three to 231 miles offshore and vary in water depths from nine feet to over 11,100 feet.
Despite the extensive area offered, only 59 blocks received bids, indicating a continued selective approach from the industry in taking part in the offshore leasing program.
Nonetheless, BBG3 showed a notable recovery compared to March. High bids rose by about 76% from BBG2, and the number of blocks that received bids more than doubled from 25 to 59. Additionally, the number of participating companies increased from 13 to 16.
The auction included a 12.5% royalty rate on all water depths, which is the minimum rate set under the Working Families Tax Cut Act.
Interior Secretary Doug Burgum mentioned that the auction supports the administration's efforts to enhance domestic energy production and improve U.S. energy security.
“From the industrial power that helped win World War II to the offshore energy fueling homes, transportation, and businesses today, the Gulf of Mexico continues to serve the American people,” Burgum remarked.
The leasing program is part of a larger initiative by the Trump administration to expand offshore oil and gas operations. A law passed last year requires a long-term schedule for Gulf lease sales and auctions in Alaska's Cook Inlet, giving operators more certainty regarding access to federal lands.
The Gulf of Mexico Outer Continental Shelf covers approximately 160 million acres and is estimated to hold around 26.9 billion barrels of undiscovered, technically recoverable oil and 45.59 trillion cubic feet of natural gas.
This auction also takes place in a much different global context compared to the initial sale in December. Ongoing tensions with Iran and disruptions to shipping via the Strait of Hormuz have tightened global energy markets, leading to increased focus on U.S. domestic oil production.
Despite the improvements in BBG3 over the March auction, high bids were still about 70% lower than the $279.4 million raised in the first auction, BBG1.
The Interior Department has stated that final bid results and a statistical summary will be shared after reviewing the auction.