Mexico lowered the requirements deepwater oil and gas auctions

Gulf of MexicoMexico lowered the requirements deepwater oil and gas auctions, aiming to encourage bidders for offshore exploration and development. The country’s oil industry regulator Comisio Nacional de Hidrocarburos made changes into the requirements for the bidders of December’s auction and to attract private and foreign investors. Mexico opened its offshore sector for the foreign and private investors, trying to get funding for its delaying economy. However, the low oil prices and tightened auction requirements discouraged the investors and last months received no interest from foreign companies.

The energy companies and investors will have more flexibility to structure their bids, as they will no longer need to be the biggest stakeholder in a particular well or oilfield. This will allow the companies not involved in the day-to-day running of the field to be lead investors. Moreover the government will offer bigger blocks for development and exploration. Also the state share into the field will be smaller.

All these changes aim to attract bidders for the auction, which will be held on December 5. It will comprise 10 potentially oil-rich deepwater blocks in the Gulf of Mexico, near the border with USA. The government expects the private investors to take participation in bidding for the oil blocks and to inject several billion of dollars into the delaying economy.