Mexican Oil Regulator Approves $380 Million Investment For 2019 Projects

Mexico’s oil regulator approved drilling plans on Nov. 15 for five offshore projects with investment commitments totaling about $380 million, more than half of which was pledged for a shallow-water block operated by Talos Energy.

The projects are among more than 100 oil and gas contracts awarded by the regulator since 2015. They could lead to significant new streams of production despite President-elect Andres Manuel Lopez Obrador’s frequent criticisms of a 2013 constitutional energy reform that made the projects possible.

“These exploration plans are basically the bet that the international market has made on the potential of these projects,” said Gonzalo Monroy, a Mexico City-based oil analyst.