By June 9, 2016 Read More →

Mexico energy bidding round opening by end of July

Mexico energy bidding: 15 Gulf of Mexico shallow water blocks

Mexico energy

Mexico energy bidding has been complicated by the sharp drop in crude prices.

MONTERREY, Mexico, June 8 (Reuters) – The next bidding round in the opening of Mexico’s oil¬†and gas sector will be called by the end of July and consist of 15 shallow water blocks for exploration and extraction in the Gulf of Mexico, Energy Minister Pedro Joaquin Coldwell said.

Coldwell announced the round, denominated 2.1, at an event in the northern city of Monterrey on Wednesday.

The following round, or 2.2, would be called by the end of the summer and comprise 14 onshore blocks for exploration and production in the gas-rich Burgos basin in the north of the country as well as in southeast Mexico, Coldwell added.

Mexico ended the oil and gas monopoly of national oil company Pemex at the end of 2013 to open up the industry to more private sector investment. However, the auctions of oil and gas blocks have been complicated by a sharp drop in crude prices.

Crude futures on Wednesday hit their highest levels in 2016, beyond $50 per barrel. Coldwell said it was very hard to forecast whether the recovery in prices would last.

(Reporting by Gabriela Lopez; Editing by Leslie Adler)

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