Mexico optimistic for oil output amid mixed results to opening up

4th Jan 2016 17:25

(ShareCast News) - As it opens up its oil sector, Mexico's energy ministry has calculated that the Latin American country could reverse the last decade of declining output, with a best-case scenario that predicts a 45% rise over the next 15 years.The Mexican government's 2015-29 outlook ranged from the most optimistic output scenario of 3.325m barrels of oil per day by 2029, down to a worst-case forecast that would see production fall to 2.117m in 2029.Currently, state oil company Pemex, currently the sole producer from the country's oilfields, predicts it will produce 2.25m bpd in 2016, pretty much flat compared with last year.The ministry's forecasts for 2016 are more optimistic, ranging from 2.4m to 2.354m bpd.As part of the opening up of the sector to foreign investors for the first time in nearly 80 years, Mexico began auctioning off exploration permits last year.But while the country wanted to encourage private investment and boost oil production, the offering up of 14 offshore exploration blocks in the Gulf of Mexico for auction last summer saw only two of the blocks snapped up by interested parties.However, more hotly-awaited were the deep-water prospects due to be tendered around the middle of 2016, while a recent onshore auction saw successful bids for several concessions, including by AIM-listed MX Oil.