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Mexico, Brazil Vie for Big Oil’s Cash in Offshore Auctions

  • Sweetened rules for bidding a ‘first salvo’ in competition
  • Mexico to hold December sale, Brazil’s tender due next year
Updated on

Two Latin American countries in need of massive investments to boost drained state coffers have become locked in an escalating competition to attract Big Oil’s interest in their deep-water oil reserves.

Mexico and Brazil, the region’s two biggest economies, each want a slice from a shrinking pie as international drillers limit their investments during a time of depressed oil prices. Exploration spending by major explorers in 2015 dropped by half from a year earlier to $7 billion, according to a Wood Mackenzie Ltd. report in September that also predicted industry spending would continue to be curtailed through the end of the decade.