Private Oil Companies in Mexico Facing Decreasing Investments and Uncertainty: What This Means for the Industry

Mexico City .- The investments and presence of private oil companies in Mexico will continue to decreasewell these have begun to assess their stability Because of the lack of new opportunities, but above all for the uncertainty and distrust which was created throughout the administration.

In an interview, Merlin Cochran, General Director of the Association of Hydrocarbon Companies of Mexico (Amexhi), explained that many of the contracts awarded in bidding rounds are already ending their investigation phaseso companies They have begun to evaluate the profitability of the blocks that have been delivered to them.

It’s ok some companies already dowhile others have started developing projects with commercial potential, others believe that the resources found are not sufficient or profitableso they give all the blocks early.

If a company arrived in Mexico and has only one project and it was not successful, it is no longer acceptable to stay in the country.in order to justify its operation. Once companies leave it will be very difficult for them to return. There are many opportunities in the world.

He asked for that The lack of new opportunities will force companies to leave the country and go to other countries where they can find investment resources.

“ We need to understand that Mexico must be competitive against what the world has to offerwe We believe that we are the oil country par excellence and that the companies are going to arrive at the time when we want and That is not true“.

He asked for that many of the contracted companies are about to decide whether to develop their blocks or nota situation that That could increase or decrease the expected deposits of the National Hydrocarbons Commission (CNH) which has already been approved 65 thousand 939 million dollarsof them already 15,789 million dollars were used.

Companies must decide if they should develop an improvement that results from the actions they have taken. The times are coming to an end, right now we are going to see a greater number of resignations, It is important to maintain it number of rounds because that’s how companies can make the bets they make in the biggest increase mexican undergroundas we know in On average, about 20% of search wells are successfuland because there is only a 20%, “Well, more opportunities are needed.”

Not normal

In terms of ability a restrict the development and use of resources unconventional, that said the country’s future is in frackingbecause the rest has started to run out.

That way, if so The goal is to maintain a strong hydrocarbon industry in the future, it is necessary to develop these resources, which represent 53% of the planned resources.

“ Most of the proposed facilities are located in the not normal. We are removing that ability from Mexico, yes more opportunitynot unconventional business the the same industry that was created in the 90s or early 2000swhen he started andit grows in the united states, is a business we could use with the best international practices. “