[For more information on the industry and the insiders’ perspective, check out Mexico Oil & Gas Review]

The consortium formed by Sun God Energía de México, the Mexican subsidiary of the Canadian Sun God Resources, and Jaguar Exploración y Producción de Hidrocarburos emerged victorious from Mexico’s oil and gas auction on Wednesday, winning six out of the 10 blocks offered in Round 2.2.

Of the nine bidders that could participate, four on individual basis and five as consortium, round 2.2 saw six bidders compete for 10 onshore areas containing wet gas. Two companies competed on an individual basis and four bidders took part as consortiums. Bids were placed for each of the areas and ties were settled by a tie-break payment.

The bidding process was relatively uneventful for Blocks 1 through 5 but excitement mounted during the bidding for Block 6 when Sun Energy in consortium with Jaguar tied with the consortium formed by the Mexican Newpek Exploración y Extracción and the US based Verdad Exploration Mexico. The Sun Gold consortium came out on top after offering a US$4.13 million payment that eclipsed Newpek’s US$2,920,001 bid.

On a press release related to both Round 2.2 and 2.3, CNH estimates that the assigned contracts mean an investment of approximately US$2 billion for the following 30 years. The prospective resources associated to those contracts represent 435 million barrels of oil equivalent.

The complete results of Round 2.2 are as follows:

Block 1:

Iberoamericana wins in consortium with PJP4. The bid consists of an additional royalty of 3.91 percent and a factor of 1 for additional investment.

Block 2:

Declared deserted due to a lack of bids.

Block 3:

Declared deserted due to a lack of bids.

Block 4:

Sun God wins in consortium with Jaguar. The bid consists of an additional royalty of 25 percent and a factor of 1.5 for additional investment.

Iberoamericana in consortium with Newpek and Verdad Exploration comes in second after offering an additional royalty of 15.76 percent and a factor of 1 for additional investment.

Block 5:

Sun God wins in consortium with Jaguar. The bid consists of an additional royalty of 16.96 percent and a factor of 0 for additional investment.

Iberoamericana in consortium with PJP4 comes in second after offering an additional royalty of 8.09 percent and a factor of 1 for additional investment.

Block 6:

Declared deserted due to a lack of bids

Block 7:

Sun God in consortium with Jaguar wins after its higher payment broke a tie with the Newpek-Verdad consortium. The Sun God and Jaguar bid consists of an additional royalty of 25 percent and a factor of 1.5 for additional investment. It offered US$4,130,000 as a tie-break payment.

Newpek and Verdad finished second after offering an equivalent additional royalty and investment factor but only US$2,920,001 as a tie-break payment.

Block 8:

Sun God wins in consortium with Jaguar. The bid consists of an additional royalty of 25 percent and a factor of 1.5 for additional investment.

Block 9:

Sun God wins in consortium with Jaguar. The bid consists of an additional royalty of 25 percent and a factor of 1.5 for additional investment.

Block 10:

Sun God wins in consortium with Jaguar. The bid consists of an additional royalty of 45 percent and a factor of 1.5 for additional investment.

Perseus comes in second after offering an additional royalty of 8.88 percent and a factor of 0 for additional investment.

Table made with CNH information

Click for more information on the results and on the blocks.

Industry insiders, including the heads of PEMEX’s divisions, will discuss these results and more at the Mexico Oil & Gas Summit on July 18-19. Click to find out more about reserving your space among the industry leaders.

For more articles on Mexico’s oil and gas industry, check out our blog!

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