First phase of Mexico's shallow water bidding process closes

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Friday, March 20, 2015

The first phase of bidding for Mexico's shallow water oil and gasfields has closed, with a total of 39 firms enrolled in the process, according to the hydrocarbons commission (CNH).

The first round of tenders comprises 14 shallow water blocks, the contracts for which will be awarded in July. Contracts for extra-heavy oilfields will be awarded in August, ones for the onshore Chicontepec basin and non-conventional blocks in September, and those for other onshore blocks in November and deepwater acreage in December, according to the energy ministry's (Sener) tentative timeline.

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State-owned oil firm Pemex is also a bidder and is analyzing which fields would be the most profitable and whether to form strategic partnerships, the director of the firm's exploration and production unit PEP, Gustavo Hernández, said in December.

The second shallow water tender, announced in early March, includes five contracts for shallow water extraction covering an area of 281km2 and for which Sener expects US$4.5bn in investment.

Total reserves in shallow water are estimated at 671Mboe, with production forecast to be 124,000b/d, Sener said.

The CNH made modifications to the shallow water auction on March 9.

Firms that pre-qualify, in terms of technical and financial suitability, for the first batch of tenders for round one will automatically qualify to compete for the second batch, according to CNH president Juan Carlos Zepeda.

The competing firms must demonstrate offshore production experience and have achieved output of at least 10,000b/d of crude or equivalent within the last five years.

The list of firms that successfully pre-qualify will be published by the CNH on May 15.

The firms that have so far been enrolled in the pre-qualification process and have paid to access data regarding the shallow water blocks are the following:

Atlantic Rim México

BG Group Mexico Exploration

BHP Billiton

BP

Casa Exploration

Chevron Energía de México

Cobalt Energía de México

Compañía Española de Petróleo (CEPSA)

Diavaz Offshore

E&P Hidrocarburos y Servicios

Ecopetrol

Eni International

ExxonMobil

Galp Energía

Hess New Ventures

Hunt Overseas Oil Company

Inpex Corporation

Japan Oil, Gas and Metals National Corporation

Japan Petroleum Exploration

Lukoil Overseas Netherlands

Maersk

Marathon Offshore Investment

Mitsubishi Corporation

Murphy Worldwide

NBL Mexico

Nexen Energy

ONGC Videsh

Pacific Rubiales E&P México

Petrobal

Petróleo Brasileiro México

Pemex

Petronas Carigali International E&P

Plains Acquisition Corporation

Premier Oil

PTT Exploration and Production

Shell Exploración y Extracción de México

Sierra Oil & Gas

Statoil E&P México

Total

The rules governing the auction can be viewed here.

BNamericas will host its 3rd Mexico Oil & Gas Summit on April 15-16, and its 3rd Mexico Electric Power Summit on May 13-14, both in Mexico City.