Mexico moratorium on oil auctions giving rival Brazil an edge

RIO DE JANIERO and MEXICO CITY (Bloomberg) — Mexico’s moratorium on auctioning off its oil riches to foreign producers is giving a leg up to nearby rivals Brazil and Guyana.

Mexico President Andres Manuel Lopez Obrador has halted new bid rounds, and state-owned Petroleos Mexicanos has disappointed potential partners by eschewing deep-water blocks in favor of cheaper-to-produce oil closer to shore. This means latecomers to Mexico’s opening will have to buy into existing licenses, or move on to other countries.

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