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Oil majors show interest in Mexico's offshore auction
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Oil majors show interest in Mexico’s offshore auction

Mexico’s forthcoming auction of offshore oil and gas fields is drawing significant interest, according to a report by Fuel Fix.

So far, 21 companies have asked to review data on fields within Mexico’s territorial waters in the Gulf of Mexico. Major oil companies, such as ExxonMobil, BP, and Chevron, have expressed interest in the available fields.

The country will auction 10 blocks of hydrocarbon resources in December.

“Deepwater is the big prize,” Pablo Medina, an analyst at Wood Mackenzie said.

Four blocks sit on the maritime border with the United States in the Perdido Fold Belt. Several oil majors have explored this area and produced dozens of commercially successful wells. The other sites are located in the Salina Basin along the southern rim edge of the Gulf of Mexico.

The sale is a part of Mexico’s historic privatization of its energy sector. For the first time in 75 years, Mexico will open its deepwater reserves to private companies. Previously, state-owned petroleum giant Pemex dominated Mexico’s energy sector.

Shallow water and onshore blocks have already been auctioned off to private drillers. Mexico’s energy ministry awards license contracts. The country’s energy reform began in 2013, effectively ending the decades-long monopoly of Pemex.

In related news, Mexico announces over $4 billion in aid for struggling Pemex.

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