Arab Today, arab today mexico foreign firms set for landmark oil auction
Last Updated : GMT 21:11:55
Arab Today, arab today
Arab Today, arab today

Mexico, foreign firms set for landmark oil auction

Arab Today, arab today

Arab Today, arab today Mexico, foreign firms set for landmark oil auction

Mexican Energy PM Pedro Joaquin Coldwell
Mexico City - AFP

Mexico holds on Wednesday the first oil auction of a historic energy reform that reopens the industry to foreign investors, with US, European and Asian firms jostling for contracts.

Nearly 80 years after kicking foreign energy companies out of the country, the government is offering 14 blocks in shallow waters of the Gulf of Mexico worth an estimated $17 billion in total.

The auction is the climax of President Enrique Pena Nieto's top economic reform, which was enacted last year after a heated debate in Congress, with leftist parties warning against giving up a symbol of national sovereignty.

The daylong event could give Pena Nieto's administration a brief break from the embarrassing fallout of the weekend jailbreak of the country's most powerful drug lord, Joaquin "El Chapo" Guzman, his second escape in 14 years.

While foreign firms have eagerly-awaited this moment, the government has played down expectations of a big sale, predicting that between a third and half of the 14 blocks will be awarded.

Energy Minister Pedro Joaquin Coldwell said the estimate was in line with international experience.

"We won't squander the nation's oil resources," he said.

- First foothold in Mexico -

Analysts say the sharp drop in global oil prices in the past year have affected the plans of energy companies.

Raymundo Tenorio Aguilar, an energy expert at the Monterrey Institute of Technology, said Iran's nuclear deal Tuesday with world powers could also affect the auction.

The accord will lift sanctions on Iran's oil export, adding 1.5 million barrels of crude per day in the market, causing prices to fall further, Tenorio said.

"This weakens Mexico's ability to negotiate," he told AFP. "If only half of the bids are awarded, it would be a success given the current environment."

But David Shields, an industry analyst and director of the magazine Energia a Debate, said he expected a bigger bonanza.

"I think that there will be interest from many companies that want to be the first to have a foothold in Mexico," Shields told AFP.

Seven consortiums and 18 individual companies have qualified for the auction.

US giants ExxonMobil and Chevron, Anglo-Australian firm BHP Billiton, India's state-run ONGC Videsh Ltd, Russia's Lukoil, France's Total and Chinese-owned Nexen are among the firms bidding individually.

Some of the consortiums include Italy's ENI, Thailand's Petronas Carigali and new Mexican firms.

The legislation breaks the monopoly on drilling held by state-run firm Pemex since the industry's 1938 nationalization.

While Pemex qualified for the auction, it will sit out this time.

Pena Nieto hopes the reform will reverse years of declining production -- from 3.5 million barrels per day in 2004 to 2.3 million now -- and give a boost to the economy.

Oil auctions are a new thing for Mexico and officials said they wanted to make them the most transparent in the world. The event will be shown on a live Internet broadcast.

The companies will bid without knowing beforehand the minimum percentage that the government will want to earn for each project.

Analysts say the government made an effort to create a transparent system to ease any concerns over the country's poor track record when it comes to corruption.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today mexico foreign firms set for landmark oil auction Arab Today, arab today mexico foreign firms set for landmark oil auction

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today mexico foreign firms set for landmark oil auction Arab Today, arab today mexico foreign firms set for landmark oil auction

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Fighters celebrate Raqa victory

GMT 06:07 2017 Wednesday ,18 October

Fighters celebrate Raqa victory
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday