Guillermo Bilbao, energy and utilities expert at PA Consulting, comments on Mexico’s hydrocarbon production.
Oil companies that won in the oil rounds are about to start drilling in 70 wells, which will represent an excellent opportunity to increase hydrocarbon production.
Guillermo said: "These wells are being worked by the winners of the oil rounds. Once you win a bid you run, logically you have to start drilling as soon as possible. You have to confirm reserves, start to get the first barrel, everything is as soon as possible."
Guillermo Bilbao moderated a session at Energy Day organized by the British Chamber of Commerce with Macario Schettino who carried out the analysis of the current situation and indicated that the investments that are going to be made are around 20 billion dollars.
Guillermo said: "It was decided which will be the royalty to pay the federation to extract that oil and the market gave very positive numbers for the Mexican State, which will have great income derived from these new wells and new production."
He added that these "70 wells require many things, legal certainty, of course, but they also need the technology to be available and a supplier. Here Mexico has a fantastic national procurement opportunity."
Guillermo continues: "We are with several of the operating companies and they want to develop national suppliers, it's good for the oil companies themselves, and it is wonderful opportunity for Mexico. I'm sure the national content will be something that will be worked on a lot in the following 6 years."