Shell to continue Mexico plans even if finding oil may take years

Drilling campaign to cost between US$800 mil to US$2.4 bil. FMTNews

MEXICO CITY: Royal Dutch Shell Plc is pushing ahead on its massive deepwater drilling plan in Mexico, even as it doesn’t foresee production starting under the current government.

It’s part of a drilling campaign that will include 10 to 13 wells and cost from US$800 million to US$2.4 billion.Mexico’s new government under Andres Manuel Lopez Obrador, also known as AMLO, has promised to reverse the neoliberal policies of his predecessor and has cancelled further auctions and joint-venture opportunities with state-owned Petroleos Mexicanos.

Lopez Obrador, who came into office in December 2018, has said that oil companies must demonstrate significant commercial production before he will consider re-opening competitive auctions. The chance to develop the largely unexplored territory, believed to mirror lucrative fields on the US side of the Gulf of Mexico, lured the world’s top oil producers, including Exxon Mobil Corp, BP Plc and Total SA.“We have almost 20,000 square-km of acreage across all of our nine deepwater blocks in Mexico, which is one of Shell’s largest operated deepwater exploration positions globally,” De la Fuente said.

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