Onshore E&P activity on Mexico is expected to source of good news in the next couple of years, in spite of the volatility of the O&G market. According to a recent comment by market intelligence firm BMI Research, the results of Mexico’s Round One onshore tender last December pointed to a positive future and is expected to become the source of Mexico’s O&G production recovery. A number of factors aligned to favor onshore activity in the near future, BMI says. In first place, CNH was able to assign all the 25 blocks offered, 22 of which were granted to Mexican E&Ps. These onshore areas are underdeveloped because low investment by Pemex in the past few years (19 of them are in production), but have access to existing infrastructure which will facilitate development plans. Mexican E&Ps could also take advantage of the availability of oilfield services’ equipment and crews. “We believe the era of declining output in Mexico is nearing its end as onshore development begins to ramp up,” says BMI in the report.
To learn more about the onshore potential in Mexico and the prospects of the market, reserve your seat at the 2nd Mexico Gas Summit to be held at San Antonio, TX, on April 13 and 14. For more information, visit www.mexicogassummit.com.Older postNewer post