Hailed as a resounding success, Round 1.4 of Mexico’s oil licensing process in December 2016 saw eight of the 10 potentially lucrative blocks up for grabs awarded to a range of consortiums and individual bidders spanning Asia, Europe and the US. The historic licensing round ushered in a new era for Mexico’s oil and gas industry, which has yet to dive into the country’s vast deepwater reserves, already deeply explored and exploited on the US side of the maritime border. It also marked a milestone for PEMEX, after the NOC won one of the contractual blocks, going toe-to- toe with the private sector as a partner in a consortium with Chevron and Impex.

Analysis of Round 1.4, Mexico’s outstanding deepwater reserves and the outlook for the sector are featured in this chapter, together with interviews with the winning companies poised to shape this new part of the country’s oil and gas industry.