Mexico is making moves that would potentially bring billions of investment dollars into their economy.
The country made revisions to its energy laws clearing the way for US oil firms to bid on exploration in 14 shallow-water exploration blocks. It has been 77 years since Mexico has allowed upstream companies to drill in its territory, allowing 19 firms and seven groups from the US to bid.
Texas-based Exxon Mobil Corp. (NYSE: XOM) and Chevron Corp. (NYSE: CVX) are a couple of oil service providers approved to pump an estimated 80,000 barrels per day in the Gulf of Mexico. According to Bloomberg, the companies were cleared by Comisión Nacional de Hidrocarburos (CNH), the country’s independent oil regulator.
Bloomberg reports the move will increase Mexico’s annual oil output by 500,000 barrels a day. Additionally, country representatives estimate the policy change could generate $62.5 billion in private investments by 2018.
Mexico has been making history this month with their energy market reform. The country recently released 26 “mature fields” for foreign investor bidding in early May. The shallow-water exploration blocks was the second phase of the country’s historic legislative energy reforms.