Billion-Barrel Mexico Find Could Spur Rush on Next Oil Auctions
- Premier Oil among explorers in group that struck crude
- Next auctions expected to involve deep-water and shale fields
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A billion-barrel crude discovery in Mexico could be just the lure the country needs to boost investment from oil majors as it lacks the wherewithal to reverse years of sagging output.
At a time when global oil prices were cratering, and drillers were nervously cutting exploration funds, Mexico’s earliest auctions drew spotty interest. Since then, however, European drillers led by Italy’s Eni SpA have increasingly become involved. The find in Mexico’s shallow waters could drive added interest -- and higher bids -- in future auctions as the government seeks to boost production that’s fallen by a third in the past decade.