Mexico, Brazil Vie for Big Oil’s Cash in Offshore Auctions


Two Latin American countries in need of massive investments to boost drained state coffers have become locked in an escalating competition to attract Big Oil’s interest in their deep-water oil reserves.

Mexico and Brazil, the region’s two biggest economies, each want a slice from a shrinking pie as international drillers limit their investments during a time of depressed oil prices. Exploration spending by major explorers in 2015 dropped by half from a year earlier to $7 billion, according to a Wood Mackenzie Ltd. report in September that also predicted industry spending would continue to be curtailed through the end of the decade.

To compete, Brazil this month scrapped a rule calling for its state-controlled driller to be the operator in all of its fields, controlling at least a 30 percent stake. The following week, Mexico said it would let operators bid individually in the first deep-water joint venture with state-controlled Petroleos Mexicanos, rather than in groups of two or more. In both cases, the initial rules were seen as limiting options for potential bidders.

Read more

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Powered by

Up ↑

%d bloggers like this: