Mexico Delays Next Oil Auction to Let Huge New Find Sink In

Mexico Delays Next Oil Auction to Let Huge New Find Sink In
"International and national interest is awakening," said Mexico's chief oil regulator.

(Bloomberg) -- Mexico will delay its next offshore oilfield auctions by a month, giving international bidders more time to evaluate recent major crude discoveries that highlight the potential value of the assets.

A new billion-barrel find announced last week "confirms that the Mexican side of the Gulf of Mexico is very prolific," said Juan Carlos Zepeda, Mexico’s chief oil regulator in an interview Friday. "International and national interest is awakening."

July 12 marked perhaps the single most successful day for the Mexico oil industry since the government ended Petroleos Mexicanos’s government-owned production monopoly in 2014. Premier Oil Plc, Sierra Oil & Gas and Talos Energy LLC reported a reservoir with an estimated 1.4 billion to 2 billion barrels of oil in the southern Gulf of Mexico.

On the same day, Italian producer Eni Spa said its March find in Mexico’s offshore waters also contains the equivalent of as much as 1 billion barrels, and Mexico successfully auctioned 21 of 24 onshore fields to private companies.

"There was already interest to come, explore and work in the Gulf of Mexico before these finds, but now to have discoveries in such a short time, interest of international entrants to have activity in Mexico has renewed," Zepeda, head of the National Hydrocarbons Commission that oversees the industry, said in an interview in Bloomberg’s Mexico City office.

Development Accelerating

The Talos-led discovery is expected to produce crude in three to four years, Zepeda said. Eni, which won rights to develop three more shallow water areas in the Gulf of Mexico last month, will accelerate development plans as it expects production by as soon as 2019, he said.

Mexico wants to give potential international entrants plenty of time to digest all the new data before they bid for new leases in the region. The country’s next deep water auction will be held in January 2018 instead of December as originally planned, Zepeda said. Mexico will announce the fields and acreage amounts for its next deep water auction "in a few days," he said in the interview.

The Mexican government will keep as much as 90 percent of the profits earned by the Eni project and around 83 of those generated from the Talos consortium, according to a July 16 emailed statement from the Energy Ministry.

In Mexico’s first deep water auction, held in December 2016, the oil industry’s largest companies - Exxon Mobil Corp., Chevron Corp. and BP Plc - were among those that won rights to explore for crude in the southern Gulf of Mexico.

To contact the reporter on this story: Adam Williams in Mexico City at awilliams111@bloomberg.net.

To contact the editors responsible for this story: Reg Gale at rgale5@bloomberg.net, Susan Warren

Copyright 2017 Bloomberg News.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
 Company: BP plcmore info


 - BP Restores Power At Thunder Horse Platform After Outage (Sep 20)
 - BP's Thunder Horse Platform Shut Temporarily On Power Issue (Sep 19)
 - Big Oil Becomes Greener With Progress in Cutting Pollution (Sep 18)
 Company: Exxon Mobil Corporationmore info


 - ExxonMobil Starts Fuels Production at Baytown, Beaumont (Sep 21)
 - Far From the Texas Coast, Hurricane Harvey Hits Oil Refiners (Sep 19)
 - Big Oil Becomes Greener With Progress in Cutting Pollution (Sep 18)
 Company: Chevron Corporationmore info
 - Sources: Chevron Drills Oil Well In Iraqi Kurdish Area After Two-Year Gap (Sep 20)
 - Big Oil Becomes Greener With Progress in Cutting Pollution (Sep 18)
 - Chevron's Watson Said to Plan to Step Down, Journal Reports (Aug 22)
 Company: ENImore info


 - Eni Inks Cooperation Deal With China's CNPC (Sep 13)
 - Italy's Eni Confident Of Dividend Even With Lower Oil Prices (Jul 28)
 - Mexico Delays Next Oil Auction to Let Huge New Find Sink In (Jul 17)
 Company: Pemexmore info


 - Mexico's Pemex Says Gasoline, Diesel Supplies Guaranteed (Sep 21)
 - Mexico's Pemex Says Refinery Electrical System Damaged By Quake (Sep 12)
 - Mexico's Pemex Delays Starting Salina Cruz Refinery After Quake (Sep 11)
 Company: Premiere Oil Plcmore info
 - Premier Oil Seeks Buyer For Stake In North Sea Gas Field (Sep 14)
 - Premier Oil Names Roy Franklin As Chairman (Aug 10)
 - Mexico Delays Next Oil Auction to Let Huge New Find Sink In (Jul 17)
 Company: Sierra Oil & Gas, S. de R.L. de C.V.more info
 - Mexico Delays Next Oil Auction to Let Huge New Find Sink In (Jul 17)
 - Mexico Oil Privatization Pays Off With Billion-Barrel Find (Jul 12)
 - Mexico's Sierra & Oil & Gas Sees First Exploratory Drill in Early 2017 (Nov 26)
For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit www.riglogix.com.
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Procurement / Subcontracts Administrator
Expertise: Contracts Administration
Location: Cincinnati, OH
 
Contract Specialist
Expertise: Contracts Administration
Location: Lake Charles, LA
 
Division Order Analyst - DJ Land Administration
Expertise: Business Analyst|Commercial Management|Landman
Location: Denver, CO
 
search for more jobs

Brent Crude Oil : $56.86/BBL 0.76%
Light Crude Oil : $50.66/BBL 0.21%
Natural Gas : $2.959/MMBtu 0.30%
Updated in last 24 hours