Interior Department Cancels Arctic Offshore Lease Sales

Beaufort and Chukchi Sea Lease Sales will be Cancelled in Current Five Year Oil and Gas Program

10/16/2015
Last edited 02/15/2023

Date: October 16, 2015
Contact: Jessica Kershaw, Interior_Press@ios.doi.gov

WASHINGTON – In light of current market conditions and low industry interest, the U.S. Department of the Interior today announced that it will cancel the two potential Arctic offshore lease sales scheduled under the current five-year offshore oil and gas leasing program for 2012-2017. Today, the Bureau of Safety and Environmental Enforcement (BSEE) also denied requests from Shell and Statoil for lease suspensions, which would have extended the expiration date of the leases.  

“In light of Shell’s announcement, the amount of acreage already under lease and current market conditions, it does not make sense to prepare for lease sales in the Arctic in the next year and a half,” said Secretary of the Interior Sally Jewell.  “I am proud of the performance of Interior’s Bureau of Ocean Energy Management and Bureau of Safety and Environmental Enforcement, the U.S. Coast Guard and others in ensuring that Shell’s program this past season was conducted in accordance with the highest safety and environmental standards.”

Under the current Five-Year Program, Chukchi Sea Lease Sale 237 was scheduled potentially for 2016.  The Bureau of Ocean Energy Management (BOEM) issued a Call for Information and Nominations in September 2013, in response to which industry submitted no specific nominations.  Shell recently announced that the results of its exploration well at the Burger J site in the Chukchi Sea did not warrant further exploration in the Burger prospect. 

Similarly, Beaufort Sea Lease Sale 242 had been scheduled potentially for the first half of 2017.  BOEM published a Call for Information and Nominations in July 2014, but only received one nomination, thereby raising concerns about the competitiveness of any such lease sale at this time. 

Today, the Bureau of Safety and Environmental Enforcement (BSEE) also denied requests from Shell and Statoil for lease suspensions, which would have allowed the companies to retain the leases beyond their primary terms of ten years.  The leases will expire in 2017 (Beaufort) and 2020 (Chukchi).  Among other things, the companies did not demonstrate a reasonable schedule of work for exploration and development under the leases, a regulatory requirement necessary for BSEE to grant a suspension. To view the letters regarding the suspension requests, click here for Statoil and click here for Shell.

  • Press Release
    Aerial view of the National Petroleum Reserve in Alaska
    10/23/2025

    Interior Takes Bold Steps to Expand Energy, Local Control and Land Access in Alaska

    During an event with Alaska’s congressional delegation and Alaska’s governor, the Department of the Interior announced a sweeping package of actions to boost energy development, modernize land and resource management across Alaska, and improve public health and safety for Alaskans. These steps include reopening the Coastal Plain of the Arctic National Wildlife Refuge for oil and gas leasing, completing right-of-way permits for the Ambler Road, moving forward with the King Cove–Cold Bay Road corridor through a land exchange, and providing land allotments for eligible Alaska Native Vietnam-era veterans. Together, these actions reduce regulatory barriers, support local communities, and strengthen Alaska’s role in national energy security and economic growth.

    Read more

Was this page helpful?

Please provide a comment