The fall in oil prices has taken the magic out of public auctions of E&P blocks, and their effectiveness has fallen in different producing countries. Mexico recently finished the second phase of their Round One with some improvements, but not the stellar results authorities hoped for.
The president of the National Hydrocarbons Agency (ANH) Mauricio de la Mora now says that the entity is planning a ‘mini-round’ where it will offer three blocks in December of this year, an abrupt shift from recent comments he made on how the entity will promote investment.
The National Hydrocarbons Agency (ANH) president Mauricio de la Mora said that the agency is preparing another series of measures that will help improve the conditions for the industry to remain competitive, with a focus on how it will assign new blocks.
Colombian authorities should be paying close attention to not just the results of the first Mexico Round, but how the rest of the process plays out. It clearly demonstrates that contract conditions and geology weigh just as heavily as state take when deciding whether to bid or not, says a business publication.
Bad week for Mexican President Enrique Peña Nieto: a top crime boss escapes from prison in spectacular fashion and the much vaunted Round 1 (shallow water) auction was a spectacular failure. We publish the results and make commentaries on what this means for Mexico, Colombia and the region.
A number of companies have already applied for benefits offered by the National Hydrocarbons Agency (ANH) thorough the Agreement 02, and the entity’s president Mauricio de la Mora says another round of measures are being planned.
Pacific Rubiales (TSX:PRE) and Ecopetrol (NYSE:EC) are the only Colombia focused operators participating in the historic bidding round that will open the Mexican oil industry to private capital, which has advanced to the next stage.
Last week reports of missing hard drives at the National Hydrocarbons Agency (ANH) with data on offshore blocks caught the attention of the local press. However probably a bigger story was on falsified bank guarantees for ANH contracts, conveniently slipped into the same press release. Now more details emerge on this latter issue.
Finally ruling on one of the more controversial and uncertain scenarios facing the Colombian oil industry, Ecoeptrol (NYSE:EC) has said it would not renew its association contract with Pacific Rubiales (TSX:PRE) for Colombia’s largest producing field, Rubiales.