Mexico’s Second Oil Auction Shows Positive Results – ENI, Pan America Energy, And Fieldwood Energy Take 3 Out Of 5 Blocks
In a successful second auction of Mexico’s oil and gas blocks through Round One, the country awarded three out of five production-sharing contracts on Wednesday. These results were considered successful and well received after a poor result earlier this year put into question investor interest.
The auction met official expectations and awarded potentially lucrative contracts to Italian energy group Eni and two consortiums, led by Pan America Energy and Feildwood Energy. Two of the five contracts, relating to oil fields in the southern limit of the Gulf of Mexico, failed to find bidders.
Eni won the contract for the Amoca, Mizton and Tecoalli fields while a consortium led by U.S.-based Fieldwood Energy secured the Ichalkil and Pokoch fields. A team lead by Argentina’s Pan American Energy took the Hokchi field.
The results of this auction strengthened the Mexican peso after a recent decline that significantly affected emerging market currencies while strengthening the US Dollar.
These fields are considered to be mature fields previously discovered by Pemex. With investment and new technologies, investors aim to increase production while not incurring an increase in geological risk.
Other pre-qualified bidders for the auction included Chevron and Shell but they did not bid.
The next auction of Round One will take place in December and include onshore fields.
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