On Thursday México ended a seven-decade state monopoly on the petroleum business when it started the bidding to both domestic and international companies for oil exploration rights in 14 areas of the Gulf of México.
The parcels up for bid are in shallow water, less than 500 meters (1,640 feet), off the coasts of the states of Veracruz, Tabasco and Campeche.
Bidding will continue until July 15. Companies that want to bid must meet a set of requirements, including showing their past participation in at least three exploration projects, oil extraction of at least $1 billion and at least $1 billion of capital on hand.
Businesses may bid independently or as part of a consortium, but no company can bid on more than five blocks. Bidding companies will have access for a period of six months to data about each of the parcels through a website, if they pay $363,000.
Pedro Joaquín Coldwell, Secretary of Energy, said that transparency was of utmost importance in the bidding process. Undersecretary of Energy Lourdes Melgar stressed the importance of transparency when he added that every contract will include a clause stating that any corrupt practices will lead to cancellation of the deal.
All contracts will be made public to avoid any perception of corruption.
Analysts have estimated that investment in the sector could reach $15 billion a year.
(from AP)
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