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Mexico to see $100BN energy investment in 2017

Karla Salinas | 13.03.2017

The sector has received investment commitments of $70bn, a figure that is expected to swell by $30bn by the end of December.

Mexico's energy sector will receive about $100bn in investment this year, energy minister Pedro Joaquín Coldwell said.

Coldwell was quoted by Milenio newspaper as saying at a university event the sector has received investment commitments of $70bn, a figure that is expected to swell by $30bn by the end of December.

"The energy reform is generating investment across the country that will materialize in the coming years and will generate positive effects on regional development, local production chains and the proliferation of job opportunities for young people," he was quoted as saying.

Mexico plans to hold three oil and gas auctions this year as part of Round Two. The first auction, for shallow water, is scheduled for June 19 and will also seek to award a farm-out contract to jointly develop the shallow water Ayín and Batsil fields. Pemex is expecting to see production from the fields start in 2020.

Twenty-five firms have expressed an interest in the shallow water auction, 22 of which have been granted access to the data room. They include BP, Chevron, Ecopetrol, Hunt Overseas, Inpex, Lukoil, ONGC Videsh, Repsol, Shell and Total, according to the national hydrocarbons commission (CNH).

Fifteen companies have expressed interest in participating in the second auction of Round Two, for onshore fields, due to be held in July. Four of those companies have begun the process to access the data room: Total, Gran Tierra México Energy, Tecpetrol Internacional and Geo Power Solution.

Mexico is also due to launch its third electric power auction on April 28, which will differ from the two held last year in that state utility CFE will not be the sole purchaser of electricity from generators. Power-purchasing companies will have to establish creditworthiness and the energy ministry will set up a trading house to sign and manage power purchase agreements with the companies that win bids.

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