Mexican presidential candidate moves to stop energy auctions

Mexican presidential candidate moves to stop energy auctions

A leading contender to win July’s presidential election in Mexico has confirmed energy industry fears about his intentions to rein in the reforms of the hydrocarbons sector, including substantial offshore E&P activity, according to Reuters.

Leftist Andres Manuel Lopez Obrador has made no secret of his desire to put a stop to the measures that have seen the end of state oil firm Pemex’s near 80-yerar monopoly position in oil production.

In a clear statement of intent, he told an audience in Mexico City that, if victorious in July, he would ask current President Enrique Pena Nieto to suspend two energy auctions scheduled for before December when the next presidential inauguration should take place.

The reforms, in place since 2014, are intended to make the oil and gas industries more productive by inviting in private and foreign companies to bid for exploration rights.

So far, they have led to eight oil and gas auctions in which some 90 contracts – for both offshore and onshore acreages – have been signed.

Lopez Obrador has also said he wants Mexico to stop buying foreign fuel and to stop selling its crude oil abroad.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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