Mexico Eyes Higher Oil Output Than venezuela, Brazil

Mexico Eyes Higher Oil Output Than venezuela, Brazil

Mexico plans to increase its crude oil production substantially, overtaking each venezuela and Brazil if its plans work out. This has emerged once earlier in the week, the country awarded 9 major drilling contracts to international bidders for fields within the Gulf of mexico.

Venezuela presently produces around two million bpd, that may drop to 1.6 million bpd next year. Brazil pumped 2.6 million bpd in october. once commercial production starts at the 9 new fields, Mexico’s National Hydrocarbons Commission expects the combined output from them to reach 900,000 bpd, adding to the country’s current rate of some 2 million bpd.

One of the fields which will be developed within the deepwater section of the Mexican shelf, a part of the Trion block, was awarded to Australia’s BHP Billiton, one of the world’s top 3 miners, that has been expanding its oil and gas operations recently. This, because the Wall Street Journal reports, created it the primary foreign company to join Pemex within the development of an already operating oilfield.

Chevron, BP, Exxon, and therefore the China National Offshore Oil corp. were also among the winners within the tender. CNOOC won the rights to drill at 3 fields; Statoil, BP, and Total together can develop another 2 blocks; and therefore the rest are going to be developed by POC Carigali, a unit of Malaysia’s Petronas, in partnership with Mexico’s initial private oil and gas company, Sierra, along with U.S. murphy Oil and UK-based Ophir Energy.

Two blocks remained unawarded, however nevertheless, the results of the tender were thought of a bigger success than initially expected by the organizers. Investments within the blocks may reach US$40 billion.

The tender conjointly marks a milestone in Mexico’s liberalization of the energy sector, that began in 2013 with the aim of creating higher use of the country’s mineral resources by removing Pemex from its monopoly position and inviting outside investments within the industry.