U.S. to hold Gulf of Mexico drilling auction in September

March 10 (Reuters) – The U.S. government on Friday said it would hold an auction for oil and gas drilling rights in the Gulf of Mexico in September, a requirement of President Joe Biden’s new climate change law.

The Bureau of Ocean Energy Management said in a sale notice posted online that it was proposing to offer 73.4 million acres in the Gulf outer continental shelf on Sept. 27. The Inflation Reduction Act (IRA), which Biden signed into law in August, requires that the sale be held no later than Sept. 30.

Sealed bids are due a day before the auction.

The IRA contains billions for climate change and clean energy incentives but also has protections for the powerful oil and gas sector. The Biden administration will hold a Gulf lease sale later this month on March 29 that was also mandated under IRA.

Reporting by Nichola Groom

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