Politics in any country is unpredictable as we see from the U.S. Government, to our Governments in Western Canada.
In Western Canada we can’t seem to get sufficient cooperation from the various governments, which are either socialist or liberal and should have similar idealogies, to get pipelines built. Without the pipelines the companies, the economy and governments are losing billions upon billions of dollars monthly.
As for corruption and crime there are varying degrees in every country or city. Mexico has some terrible areas and problems, however, I have neighbours, friends, business associates all who spend weeks and months in Mexico doing business, owning properties, holidaying and living there and they enjoy their time in Mexico and express few concerns.
ROE is operating in and plans to operate in what are considered safe areas.
Politically, AMLO and his government need ROE and similar foreign companies.
Part of the process in having the contract migrate was for ROE, Pemex and the other partners to present the operational and development plans for Amititlan block. The Amitilan block has been estimated by Pemex to hold at least 4.0 billion barrels of oil in just the Chincontepec formation. The Upper Jurassic and shales are estimated to hold vast amounts more.
The five year plan for the Upper Jurassic shale development from the Piamento is to have this producing at least 100,000 BOE within five years of migration, with half oil and half being gas. AMLO and his government needs this production to meet their goals.
Management that I spoke to does not seem to have major concerns with the new administration. The bigger problems are just pushing to get the deal done. The Government is dealing with offshore oil and contracts, refineries, the gasoline and pipeline crises along with increasing production and development and the new government needs to get up to speed on all of them.
Some good nes is that ROE’s CEO is in Mexico right now, working on the contract migration.