Mexico’s government announced the start of bidding for oil exploration rights in 14 areas of the Gulf of Mexico on Thursday.

Opening the bidding to domestic and international companies marked the end of a seven-decade state oil monopoly.

Mexico nationalised its oil industry in 1938. Prior to this year’s right-wing policy changes, state company Petroleos Mexicanos was the only body allowed to carry out oil exploration and production.

The parcels up for bid are in shallow water, less than 600 yards off the coasts of Veracruz, Tabasco and Campeche states.

National Hydrocarbons Commission president Juan Carlos Zepeda said the parcels we believed to contain a total of 687 million barrels of oil and forecast production of 80,000 to 100,000 barrels daily.

The areas will be explored through contracts running for 25 years, in which exploration will take a maximum of five years and the remainder will be dedicated to production.

“Mexico is betting a lot on this audacious opening,” said Energy Secretary Pedro Joaquin Coldwell.

“For that reason the government’s commitment to transparency is crucial.”

Undersecretary of Energy Lourdes Melgar said every contract would include a clause stating any corrupt practices will lead to cancellation.

Charges of conflict of interest have been aimed at President Enrique Pena Nieto after his wife bought a mansion from a businessman who had received public contracts.

The same company was also awarded a contract to build a high-speed train, which was subsequently cancelled and put out to tender again.