Chevron and Repsol abandon oil and gas exploration blocks in Mexico

Chevron and Repsol have abandoned offshore oil and gas fields in Mexico. the industry regulator said, joining more than a dozen other companies after disappointing results.

energy companies they won blocks in the gulf of mexico many years ago in gentle carried out during the reign of Enrique WoeWhat opened the business for private investment.

National Commission on Hydrocarbons (CNH) officials said Chevron requested and received permission to return a deepwater block off the coast of Tabasco because the US company believed that there were no “favorable prospects for the bloc”.

In the meantime, Repsol has received final approval to return a shallow water block in the same area.

The reasons were not immediately clear, although officials noted that the Spanish company never engaged in significant physical activity.

Both Chevron and Repsol won these blocks in consortium with other companies and had previously regained other territories.

Companies pay a toll to the Mexican state for the duration of their exploration and production activities.

Chevron confirmed the decision in a statement, but said it would retain an office in Mexico and continue to monitor industry developments in the country.

A Repsol spokeswoman said the company owns a deepwater block in the Gulf of Mexico.

More than a dozen other companies, including BP, Shell and TotalEnergies, have begun or completed processes to return all or part of the blocks to the Mexican state, according to documents obtained as a result of a request for mining reports. Reuters.

Some returned more than one block.

In an attempt to end Pemex’s long-standing monopoly, the country auctioned off more than 100 contracts to foreign and local companies following Peña’s energy reform between 2013 and 2014.

Despite initial optimism, to date only a few companies have made significant finds on these blocks.

Among them are the Italian Eni and the Mexican Hokchi Energy, as well as the American Talos Energy.

Oil contract auctions have been suspended since current President Andrés Manuel López Obrador came to power at the end of 2018.

His term ends in the second half of 2024. (Reuters)

Source: Aristegui Noticias