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Repsol, Premier win oil block in last Mexico auction before election

Tue, 27th Mar 2018 17:28

By David Alire Garcia

MEXICO CITY, March 27 (Reuters) - Mexico on Tuesday kickedoff its final energy auction before the July presidentialelection, tendering 35 shallow-water oil and gas blocks in atest of foreign producers' interest in investing amiduncertainty over energy reforms.

The first blocks awarded went to Spain's Repsol andBritain's Premier Oil in the Burgos basin in the violentstate of Tamaulipas, with few other companies bidding. Blocks intwo other basins will be awarded later in the day.

Leftist frontrunner Andres Manuel Lopez Obrador says that ifhe wins the July 1 vote he will review more than 90 contractssigned since Mexico passed legislation in 2013 ending the75-year monopoly of state energy firm Pemex.

Lopez Obrador said this month that he will ask PresidentEnrique Pena Nieto to cancel two auctions planned for the secondhalf of the year, if he wins in July.

Mexico is competing for investment with Brazil, which isalso holding an auction this week, with another scheduled inJune.

Brazil holds its own election in October, with the mostlikely leftist contender in the presidential race, Ciro FerreiraGomes, warning he would expropriate energy assets bought byinvestors if he wins.

In Thursday's auction, Mexico offered 35 areas in theBurgos, Tampico-Misantla-Veracruz and Southeast basins.

Fourteen companies including BP, Chevron,Eni, India's ONGC Videsh, Pemex, Petronas, Repsol,Shell and Total qualified to bid as individual bidders, while 22consortia have also qualified to bid.(Reporting by Gabriel StargardterEditing by Susan Thomas)

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