(OM) bp is winding down its oil and gas exploration business in Mexico, according to a Bloomberg report. The move comes six years after its arrival following the opening of the energy sector to private companies as part of the 2013 energy reform.
The subsidiary BP Exploration Mexico will conclude its participation in three exploration contracts in offshore blocks located in the Gulf of Mexico, two of them as operator and one as partner, which it was awarded in the auctions held by the Mexican government during the administration of former president Enrique Peña Nieto.
bp began participating in auctions in Mexico in 2016.
In February 2022, the company ceded corporate, management and operational control to French giant Total E&P Mexico of the CNH-R01-L04-A1.CS/2016 contract in deep waters off the coasts of Veracruz and Tabasco, which it was awarded in partnership with Total and Norwegian oil company Equinor.
More recently, bp received authorization to return early the production sharing contract CNH-R03-L01-G-CS-03/2018 in shallow waters off the coast of Campeche, in partnership with subsidiary Total E&P Mexico, Hokchi Energy and QPI Mexico.
bp told Bloomberg Línea that after analyzing the seismic studies, it concluded that the geological probability of success was very low in that offshore block. The commercial viability of the prospect is unlikely, said company spokeswoman Selene Gonzalez.
The third contract, CNH-R01-L04-A3.CS/2016 is in deep waters, and in which bp participates as a partner with Total, and which is operated by Equinor Upstream, which also reportedly intends to exit Mexico to focus on priority hydrocarbon areas and renewable energy projects.