• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 4 hours Oil prices going Up? NO!
  • 1 day Could Venezuela become a net oil importer?
  • 8 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 4 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 2 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 5 hours Could oil demand collapse rapidly? Yup, sure could.
  • 1 day Gazprom Exports to EU Hit Record
  • 2 hours Oil prices going down
  • 1 day EU Leaders Set To Prolong Russia Sanctions Again
  • 1 day Why is permian oil "locked in" when refineries abound?
  • 1 day Oil Buyers Club
  • 2 days Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 3 hours Saudi Arabia turns to solar
  • 1 day EVs Could Help Coal Demand
  • 2 days China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 20 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
Alt Text

U.S. Overtakes Saudi Arabia In Recoverable Oil Reserves

The United States has overtaken…

Alt Text

240,000 Bpd Offline Following Clashes In Libya

Continuing clashes between the Libyan…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

These Oil Majors Will Bid In Mexico’s $44B Offshore Tender

GoM

U.S. oil majors ExxonMobil, Chevron and Hess will bid jointly in the upcoming deepwater oil and gas tender planned by Mexico. The auction, which will take place on December 5, will involve ten deepwater blocks in the Gulf of Mexico. The tender, which is the first one focused on deepwater deposits, is expected to generate US$44 billion in proceeds.

According to a source close to the three companies, they have already signed a Joint Operation Agreement for the bidding process, which means they have already selected the operators for the fields they will operate should they be awarded licenses.

Mexico only allowed foreign oil companies to explore and exploit its crude reserves two years ago, forced by an 11-year decline in production. This tender now is in an area that contains what’s estimated to be 76 percent of Mexico’s prospective crude reserves. The local state-owned energy company Pemex, however, does not have the technology to develop these resources.

A total of 26 companies have qualified to bid in the December tender, including Shell, BP, and Statoil. These too, are expected to submit joint bids because the capital commitment requirements set forth by the Mexican government are too substantial for a single operator to afford, especially in the current market environment.

Deepwater is the new frontier for oil and gas companies with a presence in the Gulf of Mexico. The bulk of operating wells – 82 percent of output – are at depths of 1,000 feet or more and deeper deposits are being tapped as the advancement in drilling and extraction technology allows it.

However, following the Deepwater Horizon disaster from 2010, authorities have tightened control over drilling and production in the area, installing stringent controls that oil companies have complained would not just be ineffective but will also increase their costs uncomfortably.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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