Mexico may extend contract periods on shallow-water leases

Offshore staff

MEXICO CITY – The initial exploration contracts for Mexico expected to go up for bids later this year will have extended exploration periods. Reuters reports Juan Carlos Zepeda, Mexico’s national hydrocarbons commission chief, as saying the 14 shallow-water production-sharing contracts will give four years instead of three for operations to drill a first test well.

The original exploration phase required at least two completed wells in the first three years or risk having the 25-year contract rescinded.

Earlier this month, the regulator voted to modify the shallow-water contracts to give companies a bigger share of profits and more flexible work requirements no longer linked to fixed upfront investment commitments, but instead emphasize the number of wells drilled, Reuters reports.

03/26/2015

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