Mexico has implemented government regulations to advance its energy reforms regardless of the oil-price slump, Aldo Flores Quiroga, Mexico's deputy secretary of energy for hydrocarbons, said during a May 1 speech at the Offshore Technology Conference in Houston.
"This year, basically, we will be done with opening everything," Flores Quiroga said. "We're doing this because it makes sense regardless of the price of oil."
Mexico's energy reforms opened oil and gas investments to companies from outside Mexico. This includes upstream, midstream, and downstream, he said, adding that Mexico has signed contracts with 48 upstream companies.
"What makes Mexico special? It is resources and cost," Flores Quiroga said during his speech in which he emphasized how Mexico is what he calls a reasonably inexpensive place for the oil industry to do business.
"Mexico is poised to take full advantage of its untapped deepwater potential," said Flores Quiroga. While US federal waters host 2,366 platforms, only 46 wells have been drilled in Mexico's waters, he noted.
The Mexican government devised a 5-year plan to eventually offer 509 exploration and production blocks and 82 production fields for both offshore and onshore. Plans include 119 deepwater blocks open for nomination.
"We expect to present another deepwater round [Round 2.4] by December," he said. "Prospective resources in the 119 deepwater blocks equal 6,594 MMboe." The average deepwater block covers 1,000 sq km.
Mexico has 112 shallow water blocks. Plans are to schedule another offering-Round 3.2-in October 2018, he said.
