Today marks a milestone for Mexico's O&G sector, as the country holds the first oil auction of a historic energy reform that reopens the industry to foreign investors for the first time in 80 years.
The government is offering 14 shallow water blocks of the Gulf of Mexico valued at an estimated total of $17 billion. US, European, and Asian companies will be competing for contracts in the first of five installments in the so-called Round One.
First Of Five
The other four installments in Round One are as follows:
A Closer Look At Wednesday's Auction
The Wednesday auction marks the first time private and foreign oil companies have been allowed to participate in the Mexican O&G sector, and the first time in history that Mexican oil contracts have been tendered. The 14 blocks are situated in a region of the GOM where Pemex says it has had success over the years.
While foreign companies have eagerly awaited this event, the Mexican government has downplayed expectations of a large sale, estimating that between one-third and half of the 14 blocks will be awarded.
Seven consortiums and 18 individual firms have qualified for the tender. US majors Chevron and ExxonMobil, India's ONGC Videsh, Anglo-Australian BHP Billiton, ~ Russia's Lukoil (see below), France's Total and China's Nexen are among the global companies individually competing in Wednesday's tender.
The government is offering 14 shallow water blocks of the Gulf of Mexico valued at an estimated total of $17 billion. US, European, and Asian companies will be competing for contracts in the first of five installments in the so-called Round One.
First Of Five
The other four installments in Round One are as follows:
- September 30: The award of nine already-discovered shallow water fields in five blocks;
- December 15: The award of 26 onshore fields;
- 1Q16: Offshore Deepwater blocks and extra-heavy oilfields;
- 1Q16: Shale prospects
A Closer Look At Wednesday's Auction
The Wednesday auction marks the first time private and foreign oil companies have been allowed to participate in the Mexican O&G sector, and the first time in history that Mexican oil contracts have been tendered. The 14 blocks are situated in a region of the GOM where Pemex says it has had success over the years.
While foreign companies have eagerly awaited this event, the Mexican government has downplayed expectations of a large sale, estimating that between one-third and half of the 14 blocks will be awarded.
Seven consortiums and 18 individual firms have qualified for the tender. US majors Chevron and ExxonMobil, India's ONGC Videsh, Anglo-Australian BHP Billiton, ~ Russia's Lukoil (see below), France's Total and China's Nexen are among the global companies individually competing in Wednesday's tender.
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