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Managing risk key to unlocking Mexico's energy riches

Foreign investors are eager to enter the country's newly liberalised energy sector - but they should be wary of red tape, holes in the supply chain for unconventional extraction and short-term shortages in skilled staff

Mexico's forthcoming licensing round presents private investors with the most attractive upstream opportunity in a generation. But acreage winners will damage returns and destroy value if they fail to address manageable above-ground risks - ensuring they have adequate human resources, a robust supply chain and the ability to navigate Mexico's regulatory and legal environments. Interest in Mexico is justifiably high. No comparable opportunity for private-sector investment in conventional oil and gas exists elsewhere. The country's conventional oil reserves rank 19th in the world and undiscovered conventional resources may amount to as much as 50 billion barrels of oil equivalent (boe). The

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