<PAGE>
EXHIBIT 10.3

                              ENERGY PARTNERS, LTD.

                       AMENDED AND RESTATED 2000 LONG TERM
                              STOCK INCENTIVE PLAN

                            NONQUALIFIED STOCK OPTION

                               [GRANT DATE] GRANT

                       NUMBER            EXERCISE
                         OF                PRICE               EXPIRATION
   NAME                SHARES            PER SHARE                DATE
[EMPLOYEE]            [SHARES]       [PRICE PER SHARE]     [EXPIRATION DATE]

      This Agreement (this "Agreement") confirms the award of a stock option to
you by Energy Partners, Ltd. (the "Company") under the Company's Amended and
Restated 2000 Long Term Stock Incentive Plan (the "Plan"), to purchase ______
shares of the Company's Common Stock, $.01 par value per share, (the "Common
Stock") at the exercise price of $______ per share, upon the terms and
conditions outlined below and the terms and conditions of the Plan (this
"Option"). A copy of the Plan has been delivered to you and is available upon
request.

      This Option is awarded as a nonqualified stock option and is not an
incentive stock option pursuant to Section 422 of the Internal Revenue Code of
1986, as amended. The terms used in this Agreement shall have the same meaning
as in the Plan, unless the context requires otherwise.

      A summary of the terms and conditions of this Option follows:

1.    DATE OF GRANT

2.    EXPIRATION DATE

      Your right to exercise this Option (to the extent vested) shall continue
      in effect through the day that is ten (10) years from the Date of Grant:
      ____________ (the "Expiration Date"), subject to earlier termination under

<PAGE>

      certain circumstances, as outlined in Paragraph 7 of this Agreement.

3.    VESTING AND EXERCISE

      Your right to purchase shares of Company Common Stock under this Option
      shall be exercisable only to the extent that this Option has vested. This
      Option shall vest and become exercisable upon the following schedule:

                                VESTING SCHEDULE

      a)    One third (1/3) of the shares covered by this Option vests on 1st
            anniversary of the Date of Grant;

      b)    One third (1/3) of the shares covered by this Option vests on the
            2nd anniversary of the Date of Grant; and

      c)    The final one third (1/3) of the shares covered by this Option vests
            on the 3rd anniversary of the Date of Grant.

4.    NOTICE OF EXERCISE

      Exercise of this Option shall be by written notice delivered or mailed to
      the Corporate Secretary of the Company at its executive offices, which are
      presently at 201 St. Charles Avenue, Suite 3400, New Orleans, Louisiana
      70170. [This Option may not be exercised as to less than 100 shares at any
      one time unless the remaining shares then exercisable under this Option
      total less than 100 shares.] The Notice of Exercise shall be made on a
      form the same as Exhibit "A" to this Agreement.

5.    DATE OF EXERCISE

      The Date of Exercise of this Option shall be the date on which the Notice
      of Exercise, accompanied by full payment of the Purchase Price as set
      forth in Paragraph 6 below, are received by the Company.

6.    PAYMENT OF PURCHASE PRICE

      Each Notice of Exercise shall be accompanied by a check payable to the
      order of the Company ("Cash Payment") in the amount of the number of
      shares to be purchased under this Option multiplied by the Exercise Price
      per share of this Option (the "Purchase Price").

                                   Page 2 of 7

<PAGE>

      As alternatives to a Cash Payment, the Purchase Price for the shares
      covered by this Option may also be paid as follows:

      a)    IN-KIND EXERCISE - In lieu of part, or all, of a Cash Payment, the
            Purchase Price may be paid in shares of the Company's Common Stock
            owned by you for at least six months having a fair market value
            (determined in accordance with the Plan) as of the Date of Exercise
            equal to the Purchase Price. Procedures for 'In-Kind' Exercise may
            be specified by the Company from time to time and will be available
            upon request from the Corporate Secretary of the Company. Procedures
            for 'In-Kind' Exercise may differ for "executive officers" of the
            Company, as defined under Section 16(b) of the Securities and
            Exchange Act of 1934, as amended.

      b)    CASHLESS EXERCISE - In lieu of part, or all, of a Cash Payment, you
            may deliver a properly executed Notice of Exercise, together with
            irrevocable instructions to a broker to deliver to the Company the
            total Cash Payment. Procedures for 'Cashless Exercise' may be
            specified by the Company from time to time and will be available
            upon request from the Corporate Secretary of the Company.

7.    LIMITATIONS ON VESTING AND EXERCISE

      a)    TERMINATION OF EMPLOYMENT

      Except for the circumstances provided for in Paragraph 7 (b) below, if
      your employment with the Company terminates for any reason whatsoever, all
      shares that have not vested under this Option as of the date your
      employment terminates shall be immediately forfeited. This Option may be
      exercised as to any shares that have vested under this Option as of the
      date your employment terminates, but only for a period of thirty (30) days
      from the date your employment with the Company terminates (and in no event
      beyond the Expiration Date). Any shares vested under this Option which are
      not exercised on or before the earlier of the Expiration Date or thirty
      (30) days after the date of termination of employment are forfeited and
      this Option shall be null and void and without further effect.

                                   Page 3 of 7

<PAGE>

b)    DEATH, DISABILITY OR RETIREMENT

      If you die, become disabled (as defined below), or retire (as defined
      below) while employed by the Company, the period during which this Option
      may vest will be extended through December 31st of the year in which you
      die, become disabled or retire. All shares that will not have vested under
      this Option on or before December 31st of the year in which you die,
      become disabled or retire shall be forfeited as of the date you die,
      become disabled or retire. With respect to all shares vested under this
      Option on or before December 31st of the year in which you die, become
      disabled or retire, this Option may be exercised for a period of three (3)
      years from the date that you die, become disabled, or retire (but in no
      event beyond the Expiration Date). Any shares vested under this Option but
      not exercised on or before the earlier of the Expiration Date or the date
      that is three (3) years from the date of your death, disability or
      retirement are forfeited and this Option shall be null and void and
      without further effect.

      In the event of your death, your beneficiary(s) (as defined below), may
      exercise this Option.

      If you become disabled, this Option may be exercised by your legal
      representative.

c)    DEFINITIONS

      For purposes of this Option, "beneficiary" is defined as the person(s) or
      trust(s) designated by you in a writing filed with the Company or, if no
      such designation is made, the person(s) or trust(s) entitled by will or by
      the laws of descent and distribution to receive the benefits of this
      Option.

      For purposes of this Option, "disability" is defined as your inability,
      due to physical or mental impairment, for ninety (90) days, whether or not
      consecutive, during any 360-day period, to perform the duties and
      functions for which you were employed by the Company, or such other
      circumstances as the Compensation Committee shall determine in its
      discretion.

      For purposes of this Option, "retirement" is defined as voluntary
      termination of employment at or after age 55 with at least 5 years of
      service.

                                   Page 4 of 7

<PAGE>

8.    CHANGE OF CONTROL

      Notwithstanding anything to the contrary contained in this Option, if a
      Change of Control (as defined in the Plan) occurs, this Option, or any
      portion thereof, which has not vested as of the date of such Change of
      Control and which was not forfeited prior to the date of the Change of
      Control shall immediately vest and all shares that are the subject of this
      Option shall, as of the date of such Change of Control, become immediately
      exercisable and may be exercised through the Expiration Date of this
      Option.

9.    NON-TRANSFERABLE

      This Option is not transferable or assignable, except to your beneficiary
      in the event of your death, as provided in Paragraph 7 of this Agreement.

10.   RIGHTS AS SHAREHOLDER

      You shall not be deemed for any purpose to be, or have rights as, a
      shareholder of the Company with respect to the shares covered by this
      Option until you exercise this Option. No adjustments shall be made for
      cash dividends, distributions or other similar rights for which the record
      date is prior to the date on which the shares covered by this Option are
      actually issued to you. Certificates evidencing shares acquired by you
      pursuant to this Option will be forwarded to you by the Company's Transfer
      Agent as soon as reasonably practicable after your exercise of this
      Option.

11.   MISCELLANEOUS

      This Agreement (a) shall be binding upon and inure to the benefit of any
      successor of the Company; (b) shall be governed by the laws of the State
      of Delaware, and any applicable laws of the United States; (c) may not be
      amended except in writing; (d) shall in no way affect your participation
      or benefits under any other plan or benefit program maintained or provided
      by the Company; and (e) shall not be construed as giving you any right to
      continued employment with the Company. This Agreement does not, nor shall
      it be construed to, alter, modify or amend the Plan. In the event of any
      inconsistency or conflict between any term, condition or provision of this
      Agreement and the Plan, the Plan shall control and govern.

12.   COMPLIANCE WITH APPLICABLE LAW

                                   Page 5 of 7

<PAGE>

      Notwithstanding anything herein to the contrary, this Option shall not be
      exercisable and the Company shall not be obligated to issue or deliver any
      certificate evidencing shares covered by this Option, if the Company
      determines that the exercise of such Option and/or the issuance and
      delivery of such certificate may be in violation of any law or regulation
      of any governmental or regulatory authority. Without limitation on the
      foregoing, the Company shall in no event be obligated to register any
      securities pursuant to the Securities Act of 1933, as amended, or to take
      any other action in order to cause the exercise of this Option and/or the
      issuance and delivery of any share certificate to comply with any federal,
      state or other law or regulation.

13.   WITHHOLDING

      The Company, if required, will withhold taxes on any income as a result of
      the exercise of this Option or will take a cash payment from you for the
      withholding. The Company will permit you to elect whether to pay cash to
      cover the withholding or have shares withheld to cover the withholding.

      ENERGY PARTNERS, LTD.

      BY: ________________________
           RICHARD A. BACHMANN
           CHAIRMAN, PRESIDENT AND

                                   Page 6 of 7

<PAGE>

           CHIEF EXECUTIVE OFFICER

           ATTEST:

           -----------------------
           JOHN H. PEPER
           CORPORATE SECRETARY

I ACCEPT THE OPTION GRANT AND EACH OF THE TERMS AND CONDITIONS THEREOF AS STATED
ABOVE AND IN THE PLAN:

__________________________________
[EMPLOYEE NAME]

DATE:  ___________________________

                                   Page 7 of 7