Mexican authorities have set the minimum extra royalty payments that bidders will be required to offer at next month’s offshore oil rights auction, according to Reuters.
The June shallow-water lease sale will require minimum extra royalty payments ranging between 8.5% and 24.8%, varying by which block is on offer, says Mexico’s Finance Ministry.
There will also be two onshore auctions in July.
For decades Mexico’s oil production industry was the exclusive domain of state oil firm Pemex.
But since a 2013 policy change the energy sector has been liberalizing, with Pemex’s monopoly grip loosened and foreign and private players allowed to compete for drilling rights.
The country is hoping the influx of foreign investment and expertise will help to reverse 12 years of production declines in the industry.