Mexico Moves to Open Its Energy Sector

Mexico has taken its first official step toward implementing the energy reform that Mexican President Enrique Pena Nieto signed into law roughly one year ago. The government recently unveiled many of the contractual terms for the first 14 shallow offshore blocks that will be auctioned off to oil companies early next year. Bidding for the blocks will end on July 15, 2015, and the results will be announced shortly thereafter.

Since Mexico City passed the energy law in December 2013, the reform process has gone according to plan, and the release of contractual terms indicates that it will continue to move forward smoothly, despite falling oil prices and other concerns that could derail the process. However, the move is just the first step in a slew of other auctions that Mexico City will be organizing for its energy sector's more lucrative and challenging oil blocks. By this time next year, foreign companies will likely be starting operations in many different areas of Mexico's upstream oil sector.