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Mexico's new president sees 3-year hiatus on oil auctions

2 years 5 months 3 days ago Wednesday, December 05 2018 Dec 5, 2018 December 05, 2018 8:08 AM December 05, 2018 in News

MEXICO CITY (AP) - Mexico's new president says he will take a three-year break from awarding new oil exploration contracts in order to judge the results of contracts already awarded.

President Andres Manuel Lopez Obrador says he wants more investment from private firms that have been awarded concessionary exploration contracts under reforms enacted by his predecessor, Enrique Pena Nieto.

Lopez Obrador said Wednesday he will use the three-year break to evaluate how much investment and production are actually produced by the foreign firms that bid on offshore blocks of oil fields.

He complained the firms haven't invested much and haven't produced any oil. He pledged not to cancel existing contracts.

Falling production forced the previous government to loosen the grip of Mexico's state-owned oil company, which doesn't have enough money to develop deep-water fields.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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