offshore oil and gas leasing

Offshore oil and gas leasing involves companies obtaining rights from the government to explore and produce petroleum from beneath the seabed. The government offers lease blocks through a bidding process, granting exclusive access for a designated period. Companies assess the area's potential, invest in exploration, and, if resources are found, develop drilling operations. This system helps regulate resource extraction, generate revenue for the government via lease payments and royalties, and balances economic benefits with environmental considerations.