Mexico Private E&Ps Reporting Major Finds, but Slowdown Expected Without New Rounds

Mexico’s private oil and natural gas industry has made major strides adding reserves and production since the sector was opened to non-state firms in 2014.

The most recent major announcement was German company Wintershall Dea’s Kan-1 discovery.

Wood Mackenzie Latin America analyst Adrian Lara said the discovery “is one of the largest in Mexico’s shallow water” since Zama, made by Talos Energy Inc. in 2017, and Saasken made by Italy’s Eni SpA in 2020.

Preliminary estimates indicate the Kan exploration prospect may contain 200-300 million boe of oil and natural gas in place. Wintershall Dea holds a 40% operating interest in Block 30, with working interests of 30% each held by UK-based Harbour Energy plc and Malaysia-based Sapura OMV.

“Exploration blocks taken...