Mexico launches Round Two

Mexico's energy ministry (Sener) has launched Round Two, the first auction of which will be for oil and gas contract areas in shallow waters of the Gulf of Mexico.

The auction of the blocks follows the completion of Round One in December 2015 with the auction of onshore fields which followed two shallow water auctions earlier that year.

Round Two forms part of Sener's 2014-19 hydrocarbons exploration and extraction plan, designed to increase output and reserves.

Round Two will be held in conjunction with the hydrocarbons commission (CNH) and the finance ministry (SHCP), as the latter will set the minimum revenue levels that the state will receive under the contracts awarded.

Details concerning the date of the auction, the areas to be put out to tender, the bidding rules and the contract terms and conditions have yet to be announced. The CNH is holding a meeting on Tuesday, after which more details are expected to emerge.

Some of the areas up for grabs may be those that were not awarded during the first two auctions last year.

The areas selected for auction will seek to attract companies whose capacities will allow for projects to be developed in the short term and for hydrocarbon extraction to begin within five years, Sener said.