• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 2 hours Sources confirm Trump to sign two new Executive orders.
  • 10 hours CV19: New York 21% infection rate + 40% Existing T-Cell immunity = 61% = Herd Immunity ?
  • 4 hours In a Nutshell...
  • 1 hour No More Love: Kanye West Breaks With Trump, Claims 2020 Run Is Not A Stunt
  • 23 hours Why Wind is pitiful for most regions on earth
  • 10 hours A Real Reality Check on "Green Hydrogen"
  • 1 day Why Oil could hit $100
  • 10 hours Better Days Are (Not) Coming: Fed Officials Suggest U.S. Recovery May Be Stalling
  • 1 day During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 10 hours Putin Paid Militants to Kill US Troops
  • 56 mins Where is Alberta, Canada headed?
  • 3 days Coronavirus hype biggest political hoax in history
Oil Glut At Sea Starts To Shrink

Oil Glut At Sea Starts To Shrink

The huge volumes of oil…

Are Oil Bulls In For A Disappointing July?

Are Oil Bulls In For A Disappointing July?

While the sentiment in oil…

Why The Bakken May Not Come Back

Why The Bakken May Not Come Back

The Bakken shale is already…

Damir Kaletovic

Damir Kaletovic

Damir Kaletovic is an award-winning investigative journalist, documentary filmmaker and expert on Southeastern Europe whose work appears on behalf of Oilprice.com and several other news…

More Info

Premium Content

Mexico May Have Just Held Its Last Oil Auction

In what may be Mexico’s last oil auction amid a possible presidential election shakeup, the Mexican authorities on Tuesday auctioned off 35 oil and gas areas, awarding its first blocks in the Burgos basin, but overall interest was muted.

Fourteen major international companies had been pre-qualified to participate in the auction—including Eni, Pemex, Petronas, Repsol, Shell and Total. A total of 22 consortia had also qualified to bid.

Reuters reported that the first blocks awarded went to Repsol and Premier Oil in the Burgos basin. Areas in two other basins--Tampico-Misantla-Veracruz and Cuencas del Sureste—were also on the auction block, but the first sparked only mild interest, and the results of the second were still unknown.

Repsol won two blocks with 400 million boe of combined prospective light oil and wet gas resources. Premier Oil also won two blocks with 190 million boe of combined prospective resources. This auction is the first time Mexico has opened the Burgos marine region to private operators.

Demand for Mexico’s oil offerings is mixed right now, with presidential elections looming on 1 July, and expectations high that Andrés Manuel López Obrador, head of the newly created National Regeneration Movement (MORENA), will win the poll, after incumbent Enrique Peña Nieto barred from running.

The political atmosphere has not been conducive to luring in major investment; particularly since Obrador—a key figure who has emerged as a defender of the rights of Mexico’s indigenous peoples—threatened to review more than 90 contracts signed since Mexico opened its oil market up to foreign investment. Related: $70 Oil Could Spark An Offshore Oil Boom

In February, Obrador said that if elected, he would ask for auction plans to be cancelled.

Mexico has two more oil and gas auctions lined up for this year—one in June and one later in the year, with more than 100 areas up for grabs.

However, the chances of all blocks finding investors are mixed in light of the political worries, despite a recent softening of Obrador’s rhetoric.

For the Tuesday auction, 19 of the 27 blocks in the first two basins received no bids, while results from the third basin were not yet available at the time of writing.

By Damir Kaletovic for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News