WoodMac Details about Mexicos Round One

Wood Mackenzie

On September 26, 2014, Mexico's regulators provided further details about Round One.The announcement clarified certain issues surrounding company qualification, fiscal terms, and the availability of technical data.

Round One will comprise of five mini-rounds, defined by the different opportunity types. An updated timeline confirms our previous assumption that both joint venture and standalone opportunities will be offered simultaneously.

Updated Round One timeline

Launch

Data room opening

Bids due

Standalone

Opportunity type

 

JVs

Service contract migrations

Nov-14

Jan-15

May-15

Shallow-water

Bolontiku, Sinan and Ek

Arenque

Dec-14

Feb-15

Jun-15

Extra-heavy oil

Ayatsil-Tekel-Utsil

N/A

Jan-15

Mar-15

Jul-15

Chicontepec and unconventionals

N/A

Chicontepec contracts

Feb-15

Apr-15

Sep-15

Onshore

Rodador, Ogarrio and Cardenas-Mora

All other contracts

Mar-15

May-15

Oct-15

Deepwater

Kunah-Piklis, Trion and Exploratus

N/A

Source: Wood Mackenzie

Qualification criteria clarified
Qualification criteria will be established for the different opportunities on offer. For example, in the Perdido JVs, Pemex is seeking companies with experience operating within the US side of the Gulf of Mexico. Pemex and the regulators will agree the qualification criteria for the JVs. In the case of standalone opportunities, the regulators alone will set the criteria.

Companies interested in deepwater operatorship will be required to fulfil all technical, financial and operational requirements on their own. In comparison, consortia in other types of opportunities besides deepwater, can fulfil those requirements across all their members.

Fiscal terms
PSCs and licenses will be the fiscal regimes most likely used in Round One. We expect licenses to be used for deepwater areas, although a final decision has not been reached. The contracts will most likely include a five year exploration phase and a 25 year development phase. Signature bonuses will be modest and will not be a bidding variable. They will only be used to determine the financial solvency of interested companies.

Comprehensive technical data to be available
Comprehensive data sets will be made available in Round One data rooms, possibly including processed seismic data. Both virtual and physical data rooms will be offered, enabling greater flexibility for companies to fully assess the data.

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