Mexico

Mexico’s Round 2.4 deepwater auction surpassed expectations as 19 of 29 blocks were awarded to 11 firms from 10 countries.

Finding niches that provide a competitive edge over larger operators has enabled Talos Energy to leapfrog into a powerful position with Mexico’s first offshore wildcat discovery.

The Mexican government continues to update its environmental regulations as authorities prepare for the first exploration and production (E&P) auction to feature blocks with unconventional oil and natural gas resources.

Petrofac sold its 50% interest in Petro-SPM Integrated Services to Schlumberger. Petro-SPM operates the Pánuco Integrated Service Contract in Mexico. Schlumberger now owns 100% of Petro-SPM.

A major offshore discovery led by Talos Energy is the first successful wildcat well drilled by a private company in Mexico in almost 80 years and a milestone for the country’s recently enacted energy reform.

The upstream sector for Mexico’s offshore oil and gas fields continues to diversify after its most recent tender.

OTC panelists were excited at the potential of deepwater exploration offshore Mexico and believe that opportunities there could eventually drive a big new wave of activity.

The new CEO of Pemex outlined his plan to reverse the state-owned company’s struggling financial and production situation.

To meet its projected oil demand in 2040, Mexico must see about USD 30 billion/year in upstream investment. BHP Billiton’s contract signing with Pemex represents a step in the needed direction.

Mexico’s long awaited deepwater auction saw 8 out of 10 blocks awarded but there remains plenty of work to be done before activity ramps up, including finalizing regulatory rules, upgrading ports, and optimizing the bid rules for future auctions.