The Minister of Energy Pedro Joaquin Coldwell announced last Tuesday, Jan. 22, that licensing round 3.2 for onshore conventional resources would take place on July 25, 2017. The 37 blocks announced for licensing round 3.2 brings the total number of blocks to be bid on in three licensing rounds this year to 101.
Deepwater Round 2.4 to be held Jan. 31 is expected by the Ministry of Energy to bring in at least US$31.5 billion, shallow water Round 3. To be held on Mar. 27 is expected by the Ministry of Energy to bring in US$3.8 billion of investment and Round 3.2 will bring in US$3.3 billion, adding significantly to this metric in the last year of the Peña Nieto administration. The number of blocks to be licensed in Round 3.1 and 3.2 will be the equivalent of all the blocks licensed in Rounds 1 and 2.
Of the blocks to be licensed in Round 3.2, 21 are in the Burgos basin, nine in the Tampico-Misantla and Veracruz basins and seven in the Southeast basin. The Burgos basin, where production has almost halved since 2010, currently only produces non-associated natural gas. It contains Mexico’s most important natural gas field, Nejo which produced 136,300 MMcfd in 2017. All Mexico’s largest oil fields are in the Southeast Basin.
Mexican oil production fell by 9.6 percent in 2017, making it the worst year since 1980, when production came online from Mexico’s Cantarell super field.