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Mexico's oil regulator approves BP's offshore drilling plan

Published 26/06/2019, 02:33
Updated 26/06/2019, 02:35
© Reuters. FILE PHOTO: Logo of BP is seen at a petrol station in Kloten

By Rebekah Ward

MEXICO CITY (Reuters) - Mexico's oil regulator on Tuesday approved a $97 million (£76.4 million) plan for drilling in an offshore area operated by British supermajor BP (LON:BP) in the southern Gulf of Mexico.

The four-year exploration plan approved by the national hydrocarbons commission (CNH) covers a 700,000 square kilometre shallow water block, located north of the coast of Tabasco state.

BP won the rights to drill last June, along with its partner French oil major Total.

© Reuters. FILE PHOTO: Logo of BP is seen at a petrol station in Kloten

BP's contract is one of over 100 awarded since a sweeping energy reform was finalised in 2014, championed by Mexico's previous government in a bid to reverse years of declining crude production. The current government of President Andres Manuel Lopez Obrador has suspended all future auctions, favouring instead a larger role for national oil company Petroleos Mexicanos, known as Pemex.

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