Mexican deep-water oil auction attracts the world’s biggest drillers
Mexico City — Mexico’s first competitive deep-water oil auction surpassed expectations as eight of 10 blocks were awarded to some of the world’s top oil companies. The National Hydrocarbons Commission awarded all four blocks in oil-rich Perdido Basin, where the geology is said to mirror the US side of the Gulf of Mexico, to groups including Total, CNOOC, Chevron and Exxon Mobil. In the Salina Basin in the south, which is less explored and so considered riskier, four of six blocks were awarded. Separately, BHP Billiton won the right to develop the Trion field in the Gulf along with Pemex. The deep-water auction signals the beginning of a new era for Mexico, which ended state-controlled Petroleos Mexicanos’s 75-year monopoly in the energy sector in 2013 by opening the doors to foreign competitors. Mexico is counting on the influx of foreign investment to help reverse 12 years of oil production declines. The government had modest expectations for the sale. Energy Minister Pedro Joaquin...
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