The Mexican government has auctioned two thirds of the shallow water offshore oil and gas blocks in its latest tender in the Southern Gulf of Mexico. Ten of the proposed 15 blocks were taken up in the auction. The potential output from these 10 blocks could reach 170,000 boe/d but the required investments are estimated at US$8.2bn at least.
Eni, Lukoil, Pemex, Shell, Total, Ecopetrol (a Colombian company) and Capricorn Energy were the forefront players in the round:
- Eni took 1 of the block by itself and 2 in consortium with other companies (one with Capricorn Energy and the Mexican company Citla Energy, the other with Citla Energy alone);
- Pemex took 2 blocks, one in consortium with the German company DEA AG (Deutsche Erdoel AG) and another one with Ecopetrol;
- PC Carigali, a subsidiary of the Malaysian company Petronas, also got 1 block together with Ecopetrol;
- Lukoil took one block alone;
- Total and Shell took one block together;
- Repsol, Sierra Oil&Gas and Perote (Mexico) won a block.
Source: El Financiero
This has been the fifth tender since the energy reform in 2013 (including two shallow tenders and one deepwater auction). The auction fits in Mexico's strategy which tries to attract more foreign companies in the Gulf of Mexico shelf. Pemex's monopoly on exploration and production activities ended in 2013.
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