The Mexican government is setting up a system that will allow private investors, including foreign ones, to place bids on oil projects in the nation. Mexico is hoping that this system will help the nation’s energy sector be more productive and increase revenues for its citizens.
The first round of bids to be issued and bidders selected is said to happen by early 2015. Investors from all over the world are paying close attention to the government’s creation of the bidding system, making sure they are ready to enter the Mexican market.
Much excitement is focused on Mexico’s northern border with the U.S.’s Eagle Ford and Permian basins. Mexico’s Burgos Basin lies across the border from the Eagle Ford Basin, which is gaining prominence as an oil producing area and has had a huge impact on Texas’ economy. The Permian Basin, which is the U.S.’s largest oil producer, lies directly across the border from Ojinaga, Mexico.
The Monterrey-Ojinaga corridor, which is located across from the Eagle Ford, Permian and Burgos basins, is said to have billions of barrels of reserves in oil and natural gas. The Burgos Basin is predicted to have 343 trillion cubic feet of shale gas and 6.3 billion barrels of oil. Most investors are looking at the Ojinaga and Burgos corridors.
To read the full article written by Jerry Pacheco, Executive Director of the International Business Accelerator, click here.