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Mexico: Oil companies swap stakes in Mexico as government holds off on auctions
10 Dec 2019
With Mexico’s government insisting that energy companies increase oil and gas output before it auctions off more of the country’s vast reserves or offers more partnerships with state-run Pemex, firms ranging from foreign majors to local players are scrambling to buy and sell blocks they already own.
The negotiations are creating a dynamic secondary market for oil acreage, which could be the only investment opportunity left for firms until leftist President Andres Manuel Lopez Obrador unblocks his predecessor’s flagship energy reform that has seen no new licensing rounds since 2018.
Companies selling stakes include large foreign producers that were awarded blocks in previous rounds such as China’s CNOOC and Germany’s Wintershall Dea. Smaller firms including Hokchi Energy and Grupo Diavaz are also trying to share a portion of their assets.