Mexico has announced the next phase of a bidding offer for exploration licenses on 26 onshore conventional oil fields in the Burgos, Tampico-Misantla and Salinas-Sureste basins, Wood Mackenzie said Tuesday.
Pablo Medina, research analyst at Wood Mackenzie said, "Unlike the previous two rounds, this round will use a license contract with bidding variables including additional royalty and work commitment."
According to Wood Mackenzie, this round will be more attractive to smaller companies to participate in the round.
“If Mexican companies want to be a part of the new energy landscape by offering small fields and flexible prequalification criteria, then it could be a success."
Medina also said that if the objective is to attract a diversity of larger international companies with expertise in mature fields, then the round could fall short of expectations due to the small number of high potential fields on offer.
"This round could be very attractive for smaller players but it will not lift Mexico's oil production significantly," Medina said.
Mexico is the ninth largest producer of oil in the world and the eleventh largest in terms of net exports. Additionally, the country is the third largest oil producer in the Western hemisphere behind Canada and the U.S. and has the eighteenth largest oil reserves in the world.
By Gokhan Yildiz
Anadolu Agency
gokhan.yildiz@aa.com.tr