The Trump administration on Wednesday will offer more than 1 million acres (404,686 hectares) in Alaska’s Cook Inlet to oil and gas drillers, a key test of industry appetite for investment in the region.

The sale is the first of six Alaska offshore oil and gas auctions mandated through 2032 by U.S. President Donald Trump’s One Big Beautiful Bill Act, which he signed into law last year.

Officials from the U.S. Bureau of Ocean Energy Management will read bids via a livestream on its website beginning at 10 a.m. Alaska time (1900 GMT).

Leases are valid for 10 years and include a 12.5% royalty rate on fuel produced, according to sale documents.

Trump has sought to expand domestic oil and gas resources, including in Alaska where production has been in decline for decades. Drilling in the Arctic and Alaska is a high-risk endeavor, involving decades of work and billions of dollars of investment.

The last federal auction for acreage in Cook Inlet, held in 2022, attracted just one bid.

There are eight active federal leases in Cook Inlet, all owned by Houston-based Hilcorp. They are not currently producing oil or gas.

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(Reporting by Nichola Groom; Editing by Himani Sarkar)