Mexico’s president says oil production needed before considering new contracts

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Mexico’s new President Andres Manuel Lopez Obrador holds a news conference at National Palace in Mexico City, Mexico December 3, 2018. REUTERS/Edgard Garrido

MEXICO CITY (Reuters) – Mexican President Andres Manuel Lopez Obrador said on Wednesday that he will not cancel oil contracts awarded under the previous government’s energy reform, but that he wants to see production from existing contracts before considering new auctions.

Lopez Obrador, who took office on Dec. 1, also said he wants to ensure oil companies are not using contracts for speculation, and are producing oil.

Reporting by Frank Jack Daniel, Writing by Daina Beth Solomon; Editing by Chizu Nomiyama

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