This Unexpected Move Could Derail Mexico’s Oil Boom

9 Oct 2017   Mexico

Just as Mexico’s oil industry was starting to get off the ground with foreign players entering, Mexico is throwing a wrench in the works with its consideration of new regulations that could turn off private interest for its significant oil reserves. This summer, Mexico’s landmark energy reform—ending decades of Pemex’s monopoly—started to pay off when a consortium including foreign companies struck oil in a world-class discovery off the Mexican coast. Now Mexico wants to get its hands on some of that oil in a move that could threaten to derail future interest in Mexico’s oil industry. The recent discovery could potentially extend into a neighboring owned by state-run Pemex, so Mexico is currently drafting regulations on how to share this discovery, and other discoveries that could follow. Anxious about how the country would decide to split royalties or proceeds, the consortium—consisting of Talos Energy as operator and joint venture […]

Comments are closed.