SHCP awards in Round One – How the policy of “zero discretionality” backfired
MARKET COMMENT 076 (HOUSTON) — The auction of 14 offshore blocks on July 15, 2015, by officials from the Hydrocarbon Commission (CNH) was an historic first in Mexico’s century long history as an oil exporter. That it went well is to the credit of the Peña Nieto administration; but the blame for the failure of 8 of 14 blocks to receive bids goes primarily to the Finance Ministry (SCHCP), which, by law, set the bidding parameters for the auction. The report asks: What went right and what went wrong? What lessons are to be derived from this first auction of petroleum blocks? A summary of the arguments has been prepared for a column in MILENIO (La Energía de Baker) with the title “El Exito y las Moscas de la Ronda Uno.”
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