Mexico modifies terms, scope of oil block auctions, might alter more

Coldwell said recent modifications in financial terms for oil contracts came in consultation with industry groups over several weeks and not because of recent pressure from a few big-oil executives.
Coldwell said recent modifications in financial terms for oil contracts came in consultation with industry groups over several weeks and not because of recent pressure from a few big-oil executives.

By Laurence Iliff / Wall Street Journal

Mexico has modified the terms and scope of this year’s auction of oil blocks to keep them attractive in the current price environment, Energy Minister Pedro Joaquín Coldwell said, and more changes could be in the offing.

“It could be that we make some more adjustments, but it’s not something that I can assure,” Coldwell said at a news conference. For example, the government might adjust the time limit for the drilling of exploratory wells in certain oil contracts, he said.

Currently, Mexico is in the preparation stage to auction off shallow-water blocks for exploration in the Gulf of Mexico, and to take bids for nearby oil fields that already have been discovered and contain certified reserves.

Those are the first two phases of an oil auction this year dubbed “round one” because it is the first of its kind since an energy overhaul opened the sector to private companies last year.

http://www.wsj.com/articles/mexico-may-further-modify-oil-auctions-energy-minister-says-1425950737

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