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Thursday, December 11, 2014

Mexico limits shallow-water bids in oil sector opening, (NYSE: XOM)

Mexico said on Thursday it would cap the number of shallow-water projects companies can bid for as it set out initial contracts for the historic opening of its oil and gas industry, but did not specify the share the government will take.Following a reform that ended Mexico's 75-year state monopoly, officials unveiled details of the first production-sharing contracts to an audience that included executives from Chevron Corp and Exxon Mobil Corp .The contracts are for 14 shallow-water exploration and production (E&P) blocks that will pay winning companies with a share of the output from projects, which the government estimated would cost $20 per barrel on average to produce."For the first time, we're setting in motion public tenders in which both national and international companies can explore for, and eventually extract, fossil fuel resources in shallow waters," said Energy Minister Pedro Joaquin Coldwell.

Exxon Mobil Corporation is a manufacturer and marketer of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a range of specialty products. Shares of XOM traded higher by 0.6% or $0.53/share to $89.20. In the past year, the shares have traded as low as $86.91 and as high as $104.76. On average, 13719600 shares of XOM exchange hands on a given day and today's volume is recorded at 21522152.