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Mexico’s next government starts oil contract reviews with Talos-led deal

Mexico's next government starts oil contract reviews with Talos-led deal

MEXICO CITY (Reuters) – Mexico’s incoming government has begun its promised review of oil contracts, starting with a major project won by a consortium led by U.S.-based Talos Energy, the country’s next energy minister said. Mexico’s President-elect Andres Manuel Lopez Obrador waves while arriving to his campaign headquarters in Mexico City, Mexico September 13, 2018. REUTERS/Henry Romero/File Photo

Set to become Mexico’s first leftist leader in modern history when he takes office in December, President-elect Andres Manuel Lopez Obrador vowed during the campaign to review all oil contracts awarded under his predecessor for signs of corruption.

He won a landslide election victory in July.

Officials with Talos Energy, which also holds a 45 percent stake, and Premier Oil <( PMO.L )>, which has 10 percent, did not respond by Tuesday to requests for comment.

The chief executive of Sierra Oil & Gas, which holds a 45 percent stake in the project, welcomed the review.

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“They should check everything,” said Sierra CEO Ivan Sandrea in an interview. “Along with the entire industry, I’m most interested that they clear up all of their thoughts that there was manipulation.”

The consortium secured development rights for two blocks in 2015 during the first oil auction launched by the outgoing government of President Enrique Pena Nieto, following a landmark energy overhaul that ended the decades-long monopoly enjoyed by national oil company Petróleos Mexicanos [PEMX.UL], known as Pemex.Last year, the consortium, which also includes Britain’s Premier Oil and Mexico’s Sierra Oil & Gas, said its Zama-1 well drilled in the Area […]