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exploration phase required at least two completed wells in the first three years or risk having the 25-year contract rescinded.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

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...