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Mexico’s Sierra & Oil & Gas will see first exploratory drill in 2017

27 Nov 2015

A consortium comprised of Sierrra, U.S. company Talos Energy and Britain’s Premier Oil won two blocks that were among 14 production-sharing contracts offered at the outset of Mexico’s sweeping energy sector opening.

The two blocks are located in the shallow waters of the Gulf of Mexico, and each one will require an average investment of $1.3 billion over the course of five years.

Mexico’s government hopes the landmark energy opening will fuel more robust growth in Latin America’s second biggest economy.

As part of the overhaul, from 2017 private companies will be able to import and distribute gasoline in Mexico. From 2018, they will be able to refine crude oil and sell gasoline at market prices, putting them in direct competition with state-run Pemex.