Mexico to Tender Batch of Onshore Oil Fields

Mexico to Tender Batch of Onshore Oil FieldsMexico to Tender Batch of Onshore Oil Fields

Mexico's oil sector regulator approved the call for bids for its next package of contracts covering 26 onshore areas, part of the country's historic energy industry opening after decades of state control.

The onshore oil and gas areas to be tendered are spread across five states and contain 2.5 billion barrels of oil equivalent (boe) in proven, probable and possible reserves, Reuters reported. Crude oil output from the areas could reach 35,000 barrels per day while natural gas production could total 225 million cubic feet per day, officials from the national hydrocarbons commission (CNH) said.

Last year, Mexico's Congress finalized a sweeping energy overhaul that ended Pemex's longstanding monopoly on a wide range of oil sector activities from exploration to retail gasoline sales.

The reform aims to lure billions of dollars in private investment via new contracts to boost crude oil output, which has declined by about a third over the past decade.