Oil companies willing to pay billions for offshore drilling rights
Wednesday, December 21, 2016
For drilling rights off the coast of Mexico on the gulf side of the country, international oil and gas companies have agreed to pay billions of dollars, according to ShaleOhio.
The companies, which include Total of France and Exxon Mobil and Chevron of the United States, are betting on the potential for oil and natural gas prices to rebound enough to make additional exploration and drilling profitable.
The sale also represented Mexico’s decision to open its government-monopoly on its energy industry to foreign investment.
Learn more: ShaleOhio > Oil companies to pay billions to Mexico for offshore drilling rights
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Shale FAQ
How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
Are my royalty payments transferable?
Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.