As suspected, the rejection of LLOG’s Sale BBG2 bid for Keathley Canyon Block 828 has been appealed. This is an interesting case because KC 828 is part of LLOG’s Buckskin field. The block had been previously leased, but that lease expired on 9/3/2025.
We assume the lease expired due to inactivity given that the last well reached total depth more than a year prior to the expiration date. LLOG wanted to reacquire the lease back, but BOEM’s valuation was 20 times higher than LLOG’s bid. It’s also interesting that no other company submitted a bid. Did no one want a lease in an established field? BOEM valued this block far higher than any other block in the sale.
LLOG’s letter of appeal is not publicly available. Below is the summary blurb from the Serial Register Page:
By letter dated May 27, 2026, LLOG Exploration Offshore, L.L.C. appealed the Bureau of Ocean Energy Management’s (BOEM) decision for OCS-G 38173, covering all of Block 828, Keathley Canyon. LLOG Exploration Offshore, L.L.C. is requesting reconsideration of the rejection decision. The Adjudication Section received the written request and statement of reasons within the 15 days of the rejection decision, on May 28, 2026.
According to the applicable regulation, the BOEM/MMA Director is the deciding officer and the decision is not subject to appeal to the Interior Board of Land Appeals. The rejection seems rather straightforward under BOEM’s bid evaluation policies, but perhaps there is much more to the story.
Bud's Offshore Energy (BOE) 