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MEXICO – Mexican oil regulators postponed petroleum block auctions until Wednesday after the inauguration of president-elect Andrés Manuel López Obrador.
Sales of 37 ground blocks of oil and gas expected in September, and offers to create joint ventures with the state oil company Petróleos Mexicanos SA in seven regions were expected in October.
López Obrador won the July 1 presidential election with 53% of the vote, 30 points more than his closest rival. He will take office on December 1st. His party, the National Regeneration Movement, won the majority in Congress and Senate
The leftist nationalist criticized the 2013 changes to energy laws to allow private and foreign investment in oil and, in an election speech, reiterated his intention to review the contracts awarded up to here. Mr. López Obrador did not mention the change in energy laws
. He says his government will invest heavily in refineries to reduce Mexico's dependence on imports of gasoline and other fuels.
The Ministry of Energy, calling for the adjournment of the auction, said that companies had asked for more time to prepare and that he hoped that more companies participate. Interest for both auctions has been limited, and for unconventional blocks, only Pemex has been listed.
"Let's remember that we are about to consider contracts with the new administration," said Juan Carlos Zepeda. the National Hydrocarbons Commission. "The opening of this space will allow us to accompany the new administration and the transition team in this process."
The postponement is not just about López Obrador, said Gonzalo Monroy, independent energy consultant in Mexico City. [19659003] The auction for the onshore blocks had some contractual problems, including the environmental liabilities left by Pemex, while the model contract for shale blocks was considered impractical by a number of companies, and "does not reflect not the realities of the industry ".
To date, Mexico has awarded 107 contracts for onshore, offshore and deepwater areas, as well as joint ventures with Pemex. Contracts could generate investments of about $ 160 billion, according to government officials.
The first oil under contracts is expected to begin circulating in mid-2019.
President
Enrique Peña Nieto,
whose term ends on November 30, bet on the energy review to restore the country's oil production which fell from a record 3.4 million barrels a day in 2004 to less than 2 million barrels a day currently.
Write to Anthony Harrup at [email protected]
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