Published By : 01 Feb 2018 | Published By : QYRESEARCH
Mexico is aspiring greater independence on energy requirements and the government is pushing for discovery of new natural reserves deep into the ocean. Recently, the North American country auctioned off exploration and production permits within their territory and Royal Dutch Shell Plc emerged as the dominator.
The Netherlands’ Company won nearly a third of the offerings at the bidding rounds, the biggest yet in Mexico’s history. A total of nine out of 29 prime Gulf of Mexico tracts were on offer alongside the U.S. border, where Shell already has operations underway. This deals now reinstates Shell as the leader in Mexico’s deep water, adding into its deep prospects in the U.S. side of the Gulf. It must be noted that Shell and Standard Oil Co. of California was blocked out of Mexico back in 1938 but now, the Latin American nation seems to be bringing big oil’s billions back eighty years later.
According to the President, Enrique Pena Nieto, Mexico has been successful in luring International oil companies, which is a reflection of improved financial terms with the government. Until 2013, domestically owned Petroleos Maxicanos had a literal monopoly over oil production in the country.
Upstream director at Shell, Andy Brown, congratulated Mexico on their highest bidding profits. He also revealed the company stood aggressive at the auction as it has the technological capabilities as well as proximity to the area.
Petroliam Nasional Bhd and Italy’s Eni SpA also won considerable bids, aiming about 1.5 million barrels of daily crude production, which would be nearly double of Mexico’s current rate.