MEXICO: Pemex Suspends Tender For Deepwater Farm-out

(RTTNews) - Mexico's state-owned oil company Pemex decided to suspend the bidding process for the Nobilis-Maximino deepwater farm-out amid a lack of adequate conditions to ensure broad participation in the process. However, Pemex reported that it would keep on taking actions to reduce the project risk.

"Given the prevailing expectation of medium and long-term oil prices of between US$ 50 and US$ 65 per barrel, international oil companies are being very cautious before committing to complex projects, which require large investments and offer long-term returns," the oil company said.

The Nobilis-Maximino project requires over US$ 10 billion in investments, with an estimated first production in at least six years.

The company said that "it will continue to promote its partnership strategy in various fields that present less technical difficulties and lower risks, as established in its Business Plan."