More deepwater drilling is anticipated in the Gulf of Mexico. More deepwater drilling is anticipated in the Gulf of Mexico.

Oil companies prepare for deepwater auction

Mexico will offer 29 tracts in the Gulf of Mexico in biggest sale yet

Twenty-six bidders will participate Wednesday in an auction of Mexico’s deepwater oil and gas reserves.

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The world’s big oil explorers — including Exxon Mobil Corp., Royal Dutch Shell Plc and Chevron Corp. — have been enticed to bid on the 29 tracts with cut-rate prices for drilling rates, reports Bloomberg.

The list of bidders — nine individual firms and 17 consortiums from 16 countries — was released last week by the National Hydrocarbons Commission, which will live-stream Wednesday’s event.

It will be the biggest sale yet in terms of fields and expected investment since energy reform ended the monopoly of Pemex, the state oil company, in 2013, opening the energy sector to private investment.

The deepwater reserves have yet to be uncovered because Pemex didn’t have the technology to tap them.

More than 60 national and international companies have been awarded contracts for exploration and production in the Gulf of Mexico since reform was introduced.

Source: Offshore Energy Today (en), Bloomberg (en)

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  • WestCoastHwy

    “The deepwater reserves have yet to be uncovered because Pemex didn’t have the technology to tap them”, Ya for sure! Do you really think a third world country like Mexico could even know how to tap a keg if it wasn’t for the Jesuits?

    In other Mexican news, “Corruption is slowing BP’s expansion plans.”

    • owl905

      What an ignorant comment.

      • WestCoastHwy

        What’s up TROLL! Spilling your ,”What an ignorant comment,” sh*t around? F*ck off and keep to your own comments dick!

      • WestCoastHwy

        For the sack of the Gods, go away you out right pathetic TROLL!

    • Hailey Mannering

      Nearly $100 billion in tenders is substantial.

      • WestCoastHwy

        For whom does the monies toll?

  • owl905

    Pemex stalled in last round of off-shore expansion. It wasn’t just the prices or the horizontal drilling exposure. Like all nationalized oil industries, the business model was found wanting when the oil glut hammered pricess in the 2012-2015 years.
    And the search for partners will likely be frustrating because, like other national oil companies, joint ventures have too many strings attached: https://uk.reuters.com/article/us-mexico-oil-farmouts/pemex-woes-presidential-race-stall-mexican-oil-joint-ventures-idUSKBN1FJ0N1

    • WestCoastHwy

      If you have ever conducted business with any Mexican entity you would eat your words. You have no clue Mr. owl905 and what you hear in the news, well, “you go girl!”

  • WestCoastHwy

    I have personally spent 20 years dealing with Mexican entities. From campesino’s to major political members to major border controlling families and let me just say one thing, They don’t play by the rules and have no sense of consideration nor reciprocity. So, if you have a good story of your adventures of doing business with a Mexican entity, please entertain me with a good reply! I did meet the rep for Walmart USA, that was the best story I’ve heard!

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