Successful Auction for Oil Drilling Rights in Mexico Follows Weak Debut

Successful Auction for Oil Drilling Rights in Mexico Follows Weak Debut

1. The Mexican government put five production blocks up for bid and awarded contracts for three, well above the average for similar auctions in Latin America.

2. Mexico has ended more than 75 years of a state monopoly to invite in foreign investment in an attempt to end a decade-long decline in oil production.

3. With the blocks auctioned on Wednesday holding probable reserves, production is expected to begin as early as 2020, according to Pablo Medina, an analyst at Wood Mackenzie, an oil consultancy.

4. Adding the right to explore for new oil as well as pumping oil from the existing reserves

5. His time around, the National Hydrocarbons Commission in Mexico relaxed many of the rules and gave companies two weeks’ advance notice on the minimum price that it would accept

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