Gregory Shamus/Getty Images News BP (NYSE:BP) is seeking to get rid of its oil assets in Mexico, as it has sold off its participation or is in the process of returning the blocks where it has operated to the country's energy regulator CNH, Bloomberg reported on Monday. The company won three exploration contracts in partnerships with TotalEnergies, Equinor, Qatar Petroleum and Hokchi Energy six years ago, but President Andres Manuel Lopez Obrador has since halted and reversed the prior government's energy reforms and sought to boost state oil giant Pemex. Earlier this month, BP (BP) received authorization from CNH to return its share of a contract in shallow waters that it won in a consortium; the company told Bloomberg the block had a "very low" probability of success and the commercial viability of the prospect was unlikely. BP (BP) still holds an indirect interest in Mexican blocks through Hokchi Energy, and maintains more than 500 service stations in Mexico and sells natural gas to industrial clients in the country. Talos Energy's experience with Mexican authorities highlights the difficulties of working with the current government; after Pemex was chosen to operate the Zama oilfield Talos had discovered, the U.S.-based driller has threatened international arbitration.
Comments
0 comment