AMLO to allow Pemex more freedom in partnerships

Mexico

MEXICO CITY, August 24, 2018 – Mexican president-elect Andrés Manuel López Obrador (AMLO) is in favour of changing energy reform rules to allow NOC Pemex more freedom in choosing E&P partners for farm-out blocks, international media reported Thursday.

Regulatory approval is currently required to finalise Pemex’s upstream partnerships, which are chosen based on highest bidder, though the next administration aims to change legislation to allow the NOC more power over its operations, sources told the Wall Street Journal.

AMLO also plans to suspend Mexico’s bidding rounds for two years, sources said. The next two tenders, initially set to occur before the end of the year, have already been pushed back to early 2019 to allow the incoming administration time to review E&P contracts awarded since 2015.

AMLO was elected on July 1 and will take office on December 1.

Read our latest insights on:

• Mexico

Previous

Petrofac to sell North Sea asset

Next

Golar applies for FSRU permits in Brazil