Mexico Announces 14 Oil Field Tenders as Oil Prices Hit Five-Year Lows

Mexico has endorsed an international tender for exploration of shallow-water raw materials in the Gulf of Mexico. The estimated total reserves in the area amount to almost 687 million barrels.

MEXICO CITY, December 11 (Sputnik) — Mexico's National Hydrocarbons Commission (CNH) has approved an international tender Thursday for 14 exploration and production contracts for shallow-water raw materials in the Gulf of Mexico scheduled for next year.

"We are expecting that many companies will be interested in particular in these first tenders," Juan Carlos Zepeda, head of the commission, said in a live feed of the CNH meeting.

Zepeda estimated that total reserves in the area amount to almost 687 million barrels and production costs would not exceed $20 per barrel. The announcement came against the backdrop of Mexican oil prices falling in the international market. According to state oil company Pemex, prices reached five-year lows on Wednesday, at $54.4 per barrel, falling by $2.74 from the day before.

Energy reforms in the country are under way since December 2013, marking first steps in allowing private investment in the sector over the last 80 years. Earlier, Russian oil and gas company Lukoil has signed a cooperation agreement with Pemex, and Gazprom has expressed interest in the projects in the country.

Oil prices fell sharply after a decision on November 27 by the Organization of Petroleum Exporting Countries (OPEC) to maintain oil production at 30 million barrels per day. Brent and West Texas Intermediate benchmark futures dropped to five-year lows in response to the oil cartel's decision.