Mexico’s oil regulator on June 25 approved a $97 million plan for drilling in an offshore area operated by British supermajor BP in the southern Gulf of Mexico.
The four-year exploration plan approved by the national hydrocarbons commission (CNH) covers a 700,000-sq-km shallow-water block, located north of the coast of Tabasco state.
BP won the rights to drill in June 2018 along with its partner French oil major Total.
BP’s contract is one of over 100 awarded since a sweeping energy reform was finalized in 2014, championed by Mexico’s previous government in a bid to reverse years of declining crude production. The current government of President Andres Manuel Lopez Obrador has suspended all future auctions, favoring instead a larger role for national oil company Pemex.
Shale pioneer Chesapeake Energy has been shifting to higher-margin oil production in response to sliding gas prices caused by a global supply glut.
Western Energy Alliance and two other U.S.-based trade organizations do not “share our ambitious and progressive approach to the energy transition,” says BP CEO Bernard Looney.
Credit crunch looms for U.S. shale producers as ‘staggering’ amount of debt nears maturity.