• 3 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 8 minutes Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 11 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 15 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 1 hour The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 21 hours Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 1 day As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 21 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 2 hours Middle East on brink: Oil tankers attacked off Oman
  • 7 hours Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
  • 1 day Never Knew Gasoline Prices were this important!
  • 12 hours Plants are Dying
  • 23 hours (Un)expectedly: UK Court Sets Assange U.S. Extradition Hearing For February 2020
  • 4 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 19 hours We Are Better Than This
  • 7 hours Emmissions up, renewables nowhere
  • 2 days Britain makes it almost 12 days with NO COAL
America’s Most Important Natural Gas Export Market

America’s Most Important Natural Gas Export Market

Trump’s plans to impose tariffs…

Is It Time For A Contrarian Bet On Oil?

Is It Time For A Contrarian Bet On Oil?

A slew of bearish news…

Mexico’s Incoming President Presses Big Oil To Start Pumping From Recent Finds

offshore rig

Mexico wants Big Oil to start producing from the recently discovered oil fields in Mexico as soon as possible, incoming President Andrés Manuel López Obrador told foreign executives at a recent meeting, Reuters reported on Tuesday, quoting sources and executives who attended the meeting.

In this first meeting with major international oil companies operating in Mexico, however, the president-elect didn’t give any indication whether new oil blocks will be offered and oil tenders held, according to attendees who spoke to Reuters.

Outgoing Mexican President Enrique Peña Nieto opened up the energy sector to foreign investment in 2013, ending 70 years of state monopoly. Since then, Mexico has held several successful auctions that have attracted oil majors to its oil and gas exploration industry.

However, incoming president López Obrador, who takes office in December, has been critical of the energy reform and has vowed to review the contracts that foreign firms have already signed with Mexico.

In July, Mexico’s energy regulator postponed two oil auctions that were set for September and October to February 2019, after López Obrador takes office this December. Then in August, reports emerged that the incoming administration was thinking of indefinitely halting competitive tenders for oil and gas in Mexico.

Last month, the incoming administration began the review process for a contract with a consortium led by U.S. Talos Energy.

Talos Energy’s chief executive Tim Duncan was one of the executives who met with López Obrador at the first meeting with foreign oil firms at the end of September.

Related: The Oil Markets Are At A Confusing Crossroads

“We know we have to exceed expectations and we’re trying to make sure we do that,” Duncan told Reuters.

López Obrador wants to reverse a decline in Mexico’s oil production as many oil fields are maturing. Mexico’s current oil production stands at about 1.84 million bpd, of which 60 percent is exported.

López Obrador signaled at the meeting that he would put around 20 currently idle drilling rigs of Mexican oil service firms to work for state energy firm Pemex, three executives who attended the meeting told Reuters.

The incoming president still needs to show that he is on board with foreign investments and still needs to hold tenders if he is to meet his goal of reversing the slide in production.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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