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Licensing Rounds an Investment Opportunity

Sun, 07/01/2018 - 16:11

The licensing rounds have scratched the surface of the potential Mexico holds. The country has an average recoverable reserves rate twice as large as that in Brazil and seven times the size of that in the US. It has an average size of onshore discoveries three and four times larger than in Colombia and Brazil, respectively. Now, 107 blocks have been assigned to 73 companies coming from 24 countries in the nine concluded rounds and three farmouts. On average, companies have placed 3.5 bids per offered block, and in total, all the assigned blocks have attracted a committed investment of US$4.07 billion. During these processes companies have offered a total US$3.9 billion to the state as tiebreaker payments. The next rounds will include the firstever round on unconventional resources on Sept. 5, 2018.