Oil's Heavy Hitters Line Up to Dive Into Mexico's Deep Waters
(Bloomberg) -- If you're a super-major oil explorer, Mexico says it's got a bargain for you.
The once-giant crude nation whose output plunged in the past decade is enticing the world's richest explorers with cut-rate prices for drilling rights to its most coveted offshore fields. The Jan. 31 auction for access to 29 deep-water tracts comes as $70-a-barrel crude lifts foreign drillers from the worst market slump in decades.
Exxon Mobil Corp., Royal Dutch Shell Plc and Chevron Corp. are among the 21 entrants registered to bid next week, the National Hydrocarbons Commission, known as CNH, announced Thursday in a webcast. The sale will be Mexico's biggest, in terms of fields and expected investment, since government-controlled Petroleos Mexicanos's monopoly ended in 2013.
Mexico's demand for low upfront bonus payments probably accelerated interest in the auction, Horacio Cuenca, an analyst at Wood Mackenzie Ltd., said in an interview in Rio de Janeiro. The blocks also don't require large initial investment commitments.
"Mexico has done all it could to attract companies," he said. "It's going to drive interest. The blocks are very cheap."
Pemex, as the state-owned oil producer is known, is set to bid individually and as a partner in six groups with companies such as Chevron and Shell. Malaysia's Petroliam Nasional Bhd also qualified as a lone bidder and as a part of five consortium groups with partners such as Cnooc Ltd. and Repsol SA.
"This is good news," Hector Acosta, CNH commissioner, said during Thursday's webcast. "The fact that we have so much variety in the integration of the consortium groups -- 17 bid groups and nine individual bidders -- seems like good news and that we will have a good presentation of offers for the different blocks."
To contact the reporters on this story: Adam Williams in Mexico City at email@example.com, Sabrina Valle in No Rio de Janeiro at firstname.lastname@example.org.
To contact the editors responsible for this story: Reg Gale at email@example.com, Joe Carroll, Margot Habiby
WHAT DO YOU THINK?
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.
- BLOG: The Good Deeds of Oil, Gas (Aug 09)
- ExxonMobil Offers Aug-Sept Cargo from Australia's Gorgon LNG (Aug 07)
- Feds Drop Obama-era ExxonMobil Probe (Aug 03)
Company: Shell more info
- Silvertip Subsea Contract Goes to McDermott (Aug 07)
- Canada Crude Differential Seen Staying High As Refiners Take Downtime (Aug 03)
- Saipem-led JV Wins Contract for LNG Project in Nigeria (Jul 13)
Company: Chevron Corporation more info
- ExxonMobil, Chevron Earnings Miss Wall St Expectations (Jul 27)
- Chevron Awards Gorgon Subsea Contract (Jul 26)
- Oil Majors Quizzed on Near-Term Permian Hiring Plans (Jul 23)
Company: PETRONAS more info
- Sources: Saudi Aramco, Malaysia's Petronas Tap Banks for Jumbo Financing (Aug 07)
- LNG Canada Ticking the Boxes Toward Approval, Servicers Say (Jul 12)
- Sources: Malaysia's Petronas Buys First Ever US Oil Cargo, Due In Sept (Jul 03)
Company: Pemex more info
- Bay of Campeche Subsea Tieback Contract Goes to McDermott (Aug 01)
- Pemex Hunts for Partners as Election Approaches (Jun 27)
- Mexico's Pemex Says Fire Under Control at Minatitlan Refinery (Jun 11)
Company: Repsol more info
- Sources: Spain's Repsol Hires Tanker For Iran's Pars Oil As Sanctions Loom (Jun 19)
- Total Signs Deal to Extend TFT Gas Field License in Algeria (Jun 11)
- Repsol Asks Vietnam For Compensation After Drilling Project Halted (May 04)
Company: CNOOC more info
- Media: China CNOOC Plans $2.2B LNG Terminal In East China (Jun 29)
- Total To Start Uganda Oil Production In 2021 At The Earliest (Jun 19)
- China's CNOOC Sees Ugandan Oil Production Starting In 2021 (Jun 13)