Two years ago, the government in Mexico had begun auctioning off the rights to drill in the parts of the Gulf of Mexico, hoping to promote investments and pave a way for the country to access latest technologies. That move seems to have worked wonderfully, as an international consortium of energy companies have revealed that they have found large oil field, whereas a different firm functional in a different area says that they have detected more natural oil reserves than they initially expected earlier.

For seven decades, until recently, the Mexican oil and gas sector was handled by the state energy company, which was significantly curtailing the oil output from the country, often swept under the carpet as a limitation of slow-moving public sector, which did not have the necessary tools and technology to explore potential reserves of shale oil and gas in deep sea. The two recent announcements strongly suggests that Mexico’s strategy is working and the future is bright.

Over a Billion Barrels of Oil Found Just off the Mexican Coast

Three companies, Talos Energy of Texas, Sierra Oil and Gas from Mexico, and Premier Oil and Britain, which formed the consortium, has announced that they had discovered a patch of field that may contain more than a billion barrels of oil just 40 miles from the Mexican coast. This news is particularly encouraging for Riverstone Holdings, private equity form in the U.S., which is a well-known energy investor and holds 43 percent of Sierra Oil and Gas well as 45 percent of Talos Energy.

With Mexico’s close proximity to the U.S. and newly detected rich natural resources, the country is now expected to play an important role in the growth of the global oil and gas sector.

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