Low oil returns temper Mexico opportunity interest

Global Business

MME1

Despite record low oil prices, Mexico’s state oil company celebrated a victory after the government sold more oil blocks than expected.

This comes after the first round of oil auctions was a failure.

CCTV’s Martin Markovits filed this report from Mexico City.

Low oil returns temper Mexico opportunity interest

Low oil returns temper Mexico opportunity interest

Despite record low oil prices, Mexico's state oil company celebrated a victory after the government sold more oil blocks than expected.This comes after the first round of oil auction was a failure, as CCTV's Martin Markovits filed this report from Mexico City.

More details:

  • Mexico has been awarded three out of five oil drilling areas in the Gulf of Mexico after a second auction to oil drillers this year. A much needed victory for the country’s struggling oil sector. The Mexican government is in the process of reforming its oil industry from a state-owned controlled monopoly to an open sector for foreign investment.
  • The Mexican government relaxed the rules and gave more favorable terms to companies bidding for its oil. Italian energy group Eni won the contract for the three oil fields while U.S.-based Fieldwood Energy and Mexico’s Petrobal secured two others.