Mexico | Positive expectations for the auction of deepwater blocks
Published on Wednesday, August 31, 2016 | Updated on Thursday, September 1, 2016
Mexico | Positive expectations for the auction of deepwater blocks
Summary
We expect that at least 6 blocks from Phase 4 of Round 1 will end up with a winning bid given their production potential. A project financial evaluation of a hypothetical deepwater reservoir in the Gulf of Mexico reveals that the price of an oil barrel would have to be at least USD 60 if the Mexican State wanted to charge a royalty rate of 20%
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- Mexico
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- Macroeconomic Analysis
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- Oil
Authors
Arnulfo Rodríguez
BBVA Research - Principal Economist