Mexican authorities, in a bid to lure more overseas players and better bids, are relaxing the requirement for homegrown suppliers’ involvement in future deep-water oil and gas projects, according to Reuters.
The announcement on Tuesday is that firms working in Mexican waters must use national suppliers for just 8% of projects come 2025. That’s a relatively low ratio.
Mexico has been opening up its oil industry, loosening the influence of national oil firm Pemex, in an effort to improves profitability and productivity.
But the energy sector reforms have coincided with the meltdown in oil prices and early auctions of rights both on land and shallow offshore have attracted middling interest only.
The country’s first auction of deep-water blocks – 10 in all – will be held in December.
