Mexico hopes to award at least four of the 10 deepwater oil blocks due to be auctioned next week, plus the farm-out on its Trion Field, Energy Minister Pedro Joaquin Coldwell said on Nov. 29.
Some of the world's biggest oil firms, including ExxonMobil Corp. (NYSE: XOM) and BP Plc (NYSE: BP), are pre-qualified to bid on the initial deepwater tenders on Dec. 5, which Joaquin Coldwell termed "the mother of all auctions" in an interview with local radio.
The auction will seek a partner for Pemex to develop the Trion Field, and also award the 10 other deepwater blocks, including some around Trion just south of Mexico's maritime border with the U.S.
"If we award four blocks plus the farm-out, we'd be very satisfied, hopefully it'll be more," Joaquin Coldwell said.
Mexico in 2013-2014 ended Pemex's E&P monopoly in a bid to encourage more private investment in the oil and gas industry, though the decline in crude prices has undermined interest in the historic energy reform.
If successful, the blocks could generate up to $4 billion worth of investment each, and as much as $11 billion in the case of Trion, Joaquin Coldwell said, citing Pemex estimates.
There is widespread concern in Mexico that the election of Donald Trump as U.S. president could hurt its economy due to his campaign threats to impose punitive tariffs on Mexican-made goods or tear up a joint trade deal if he cannot renegotiate it.
Still, when asked whether Trump's arrival in the White House could negatively affect U.S. interest in Mexico's energy sector, Joaquin Coldwell said he expected cooperation to remain solid.
"In terms of bilateral relations between Mexico and the United States, we expect it to be as good as it's been with President [Barack] Obama," the minister said.
Recommended Reading
NOG Closes Utica Shale, Delaware Basin Acquisitions
2024-02-05 - Northern Oil and Gas’ Utica deal marks the entry of the non-op E&P in the shale play while it’s Delaware Basin acquisition extends its footprint in the Permian.
Vital Energy Again Ups Interest in Acquired Permian Assets
2024-02-06 - Vital Energy added even more working interests in Permian Basin assets acquired from Henry Energy LP last year at a purchase price discounted versus recent deals, an analyst said.
California Resources Corp., Aera Energy to Combine in $2.1B Merger
2024-02-07 - The announced combination between California Resources and Aera Energy comes one year after Exxon and Shell closed the sale of Aera to a German asset manager for $4 billion.
DXP Enterprises Buys Water Service Company Kappe Associates
2024-02-06 - DXP Enterprise’s purchase of Kappe, a water and wastewater company, adds scale to DXP’s national water management profile.
Tellurian Exploring Sale of Upstream Haynesville Shale Assets
2024-02-06 - Tellurian, which in November raised doubts about its ability to continue as a going concern, said cash from a divestiture would be used to pay off debt and finance the company’s Driftwood LNG project.