BMI View: Mexico's historic energy sector liberalisation is ushering in a transformation of the country'shydrocarbons sector. Whilst its effects will not filter through to the country's production and reserves datathis year, over the long term the reforms will bolster upstream activity and reverse a decade-long decline inproduction.
Latest Updates And Key Forecasts
The second round (R2) of Mexico's oil and gas licensing process is proving to be a resounding success inthe face of sustained oil price weakness. R2.1 concluded successfully on June 19 with 10 of the 15 blocksawarded. R2.2 on July 12 saw seven of its 10 blocks assigned, all of which were awarded to jointventures made up of junior Mexican and Canadian firms including Sun GodResources, Jaguar Exploration and Iberoamericana de Hidrocarburos. On the same day, R2.3 was also asuccess, assigning all of the 14 blocks on offer. Junior Mexican firms again dominated the round, butwere joined by American and Chinese firms such as Verdad Oil & Gas Corporation and ShandongKerui.