Exploration & Production

Mexico’s deepwater auction heralds oil prospects

Mexico’s latest deepwater auction has brightened long-term prospects for oil production, but the country has not given up on gas Mexico’s latest deepwater auction has brightened long-term prospects for oil production, but the country has not given up on gas.
By Abhishek Kumar 5 February 2018 0 29425
Drillship operating off Mexico A drillship in the Gulf of Mexico. (Statoil)

Directional impact on forecast:
Upbeat on Mexico’s medium-to-long term oil and gas output

The second round of Mexico’s deepwater oil and gas block auctions has been a success, with strong participation from IOCs such as Shell, Eni, Chevron, Repsol and Qatar Petroleum. Rising oil and NGL prices have ensured strong interest in oil- and condensate-rich blocks, and this will also improve Mexico’s associated and non-associated gas output in the medium-to-long term. The interest from IOCs indicates they have chosen to sideline the political uncertainty...