Oil and Gas auctions in Mexico are not going to be reopened

The president of Mexico, Andres Manuel Lopez Obrador, has revealed that the Mexican government will not be reopening oil and gas auctions going forward into 2020.

At his daily press conference, the Mexican President stated, “it’s not contemplated”, when questioned if his government was taking into consideration the offer of auctions for oil and gas blocks throughout the year of 2020.

Under previous Mexican government, 110 contracts had been awarded to oil majors through oil and gas auctions. Lopez Obrador suggested, he needs to see results through investment and production of the previous contracts before opening more.

He later stated, “Of the 1.735 million barrels that were extracted yesterday only 10 000 were extracted by the companies that received the contracts”.

Mexico’s Association of Hydrocarbon Companies, including some international oil majors, released a statement after the press conference claiming the private sector had invested more than US$11 billion.