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Auction opens Mexico’s oil sector to private firms, but draws few bids

Only two of 14 exploration and production blocks July 15 attracted bids.


July 16, 2015
by The Canadian Press

MEXICO CITY — Mexico is getting off to a rough start in its effort to attract investment for its oil fields by allowing private companies to enter the energy sector after a seven-decade state monopoly.

Only two of 14 exploration and production blocks in the Gulf of Mexico put up for auction July 15 attracted bids, and the auction did not attract the world’s biggest oil companies.

The government fell far short of its prediction that 30 to 50% of the zones would draw bids.

A consortium led by the Mexican company Sierra Oil & Gas won both contracts that drew bids. Sierra’s consortium includes the US Talos Energy and the British Premier Oil.

Until last year’s legislative overhaul, Mexico’s oil sector had been closed to private companies since nationalization in 1938.

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