Investment in the oil industry to grow 27%, says Citibanamex
The oil opening in the form of equity instead of debt will be equivalent to a 27% increase in the amount of foreign direct investment (FDI) committed to Mexico, said Citibanamex, Citigroup’s Mexican subsidiary.
Based on the results of the company’s report “Examination of Mexico’s economic situation in the third quarter,” the group considered that the ratification of the past oil rounds will become not only an element to maintain the confidence of the country among investors and entrepreneurs, but also, to encourage them to increase their participation in other sectors in Mexico.
The financial group specified that the opening of Exploration and Production (E&P) projects to participants of the private sector will be validated by the following administration under the argument that the entire allocation process comply with the transparency requirements.
It will be relevant for the country that the new federal government “audits” to the 107 E&P contracts be carried out quickly.
Regarding the other E&P project, the company said that the prospects are mixed, since President-Elect Andres Manuel Lopez Obrador’s team confirmed before the election that new rounds of auctions for oil contracts would have to wait to evaluate some changes in the conditions offered.