Mexico Blames Brazil For Failing Auction

9 Dec 2017   Brazil, Mexico

The state-run oil company PEMEX blamed the failure of a recent deep-water Gulf of Mexico auction in the on competition from ongoing tenders in Brazil, according to a new report from Reuters. Weak investor appetite for Mexico’s blocks was also due to low oil prices, the company added, although 30 oil companies had at least started the pre-qualifying process. “(One) factor that affected appetite for new projects was the investment commitment recently taken on by possible bidders,” Pemex said in a statement. Fearing that interest may wane, Mexico reduced the Pemex stake in the project up for tender from 49% to 40%. The oil regulator eventually canceled the tender for the project due to lack of interest. The disinterest doesn’t bode well for Mexico, who recently opened up its energy industry by ending Pemex’s long monopoly. Mexico’s competition for this auction—Brazil—had accepted bids for its eight blocks in late […]

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