MEXICO CITY, Feb 26 (Reuters) – Contract awards for Mexico’s first-ever deep water oil auction covering ten potentially lucrative blocks will take place on Dec. 5, oil regulator CNH said on Friday, a tender that will test investor interest amid a worldwide price slump.
The ten blocks are located in the country’s territorial waters in the Gulf of Mexico.
The auction date was approved by a unanimous vote of CNH commissioners.
Four of the blocks straddle the maritime border with the United States in the Perdido Fold Belt where oil majors on the U.S. side, including Royal Dutch Shell and BP, have drilled dozens of commercially successful wells.
The remainder are located in the Salina basin along the southern rim of the Gulf.
Mexico’s energy ministry will award license contracts, similar to concessions, in the historic opening.
The government will limit the auction to the deep water blocks after initially announcing that heavy oil fields and several joint ventures with national oil company Pemex would also be offered.
Winning bidders will not be required to drill wells during the first four years of the contracts, an element designed to lure cash-strapped producers facing crude prices near 12-year lows.
The auction is the fourth phase of the so-called Round One tender, a major part of an energy reform launched in 2013 that ended the decades-long monopoly enjoyed by Pemex and aims to reverse eleven consecutive years of declining crude output.
The previous three auctions, including shallow water and onshore mature fields, awarded 30 of the 44 contracts that were offered. (Reporting by David Alire Garcia; Editing by Jeffrey Benkoe)
(Bloomberg) — Ukraine’s fight against Russia’s invasion has entered a new phase, pitting homegrown drone technology against a 2,000 kilometer (1,200 mile) swathe of largely Soviet-era oil facilities. At least...
March 19 (Reuters) – Tanker company Euronav will exit Belgium’s blue-chip Bel-20 index after just two days of trading, as it no longer meets the membership conditions after its takeover by Compagnie Maritime...
MOSCOW, March 19 (Reuters) – The new head of Russia’s Navy was formally presented in his new role for the first time on Tuesday at a pomp-filled ceremony, the state RIA news agency reported,...
March 19, 2024
Total Views: 2487
Why Join the gCaptain Club?
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.