Oil and gas companies hoping to gain some of Mexico's oil industry action will need to first fix existing contracts, Mexican President Andres Manuel Lopez Obrador said Friday, according to Reuters.
The populist left-wing Obrador said on Friday that there would be no new contracts for companies that do not invest and produce their other contracts in the country.
"If there is no production, if they do not invest, we cannot award contracts," Obrador told a news conference.
The firm stance against oil and gas companies that have not yet taken action on their ongoing projects in the country is just the latest in a series of comments by the new president that have given analysts an unfavorable perspective on Mexico's oil industry.
Shortly after Obrador took office, he undertook to review all oil and gas contracts concluded with foreign oil and gas companies of the previous administration. There should have been no new contracts until this review.
Obrador has a grim reaction to foreign oil companies and has instead coded the state-owned oil company Pemex, in a near-complete reversal of previous administrations, to open the country's oil sector to foreign players in an attempt to end the monopoly held by Pemex ̵
Obrador has long accused foreign oil companies of not stopping the production slide.
The last Pemex Partner Auction, originally scheduled for October, was canceled. The auction had to find partners for Pemex for seven offshore oil and gas units. This was the third postponement of the auction.
Obrador made significant promises to increase oil production in Mexico to 2.5 million bpd.
By Julianne Geiger for Oilprice.com
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