Amid much pageantry and suspense, a Houston-based company is a member of a consortium that was the only group to win shallow water exploration rights offered by Mexico under the nation’s historic energy reforms.
Mexico’s Secretaría de Energía held a press conference and live video stream for the July 14 event.
As part of Round 1 of Mexico’s historic energy reforms, there were 14 oil and natural gas exploration sites up for grabs in the shallow waters of the Bay of Campeche.
The hours-long event ended with a consortium led by Mexico’s Sierra Oil & Gas with Houston-based Talos Energy and London-based Primier Oil as the only group that won bids.
The consortium won bids for two out of the 14 available sites:
The 14 exploration projects generated great interest when they were first announced in December.
A total of 49 companies expressed interest in the projects but the number was whittled down to five companies and four consortiums who qualified as actually submitted bids. Major companies such as BHP Biliton, Chevron and ExxonMobil qualified as bidders but did not submit any proposals.
Seven of the shallow sites did not receive a single proposal while five of the bids came in below what the Mexican government would accept.
Sierra Oil & Gas is Mexico’s is Mexico’s first independent oil and natural gas company.
Talos Energy, which is headquartered in downtown Houston, is an independent oil and natural gas company focused on offshore exploration and production.