Mexico’s oil auction beats expectations

Reuters – Mexico’s oil regulator awarded all 25 contracts on offer on Tuesday, beating expectations despite a dramatic plunge in crude prices, in an auction aimed at boosting new Mexican oil companies after a historic sector reform finalized last year.

Peak oil production from the 25 onshore fields will reach 77,000 barrels per day and attract investment of $1.1 billion, Energy Minister Pedro Joaquin Coldwell said in a tweet following the auction. Mexican officials had said they would consider the auction a success if at least five contracts were awarded.

“This is a triumph for Mexico,” Juan Carlos Zepeda, president of Mexico’s oil regulator CNH told local radio after the auction.

http://www.reuters.com/article/mexico-oil-idUSL1N14427320151216

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