On Sept. 28, the Ministry of Energy, the Ministry of Finance and the CNH announced the bidding bases and contract models for the first call for entries of Round 3.
Round 3.1 will include 35 contractual exploration and extraction areas in the shallow waters of the Gulf of Mexico, totaling 26,265km2 and an estimated 1,988 mmbpce of prospective resources. Here are the details:
- Burgos: 14 blocks of 8,424km2 in total, prospective resource estimated at 579 mmbpce and a remaining volume of 579 mmbpce.
- Tampico-Misantla-Veracruz: The largest and most promising component of Round 3, with 13 blocks of 12,493km2 and an estimated 1,217 mmbpce, with 193 mmbpce of remaining volume.
- Southeast Basins: 8 blocks of 5,348km2 and 192 mmbpce of estimated prospective resource, coupled with 96 mmbpce of remaining volume.
Mexico’s regulatory authorities will make sure the process unfolds in compliance with the characteristic parameters of transparency, equality, competitiveness and simplicity of previous Rounds.
To guarantee the optimal development of the petroleum projects, the contracts have been design to include shared production schemes, compensation payments, contract escalation, cost recovery schemes, exploration incentives, 30 year contract periods with the possibility of two consecutive five-year extensions, exploration periods of four years with the extension possibility of two consecutive two year periods, evaluation periods, development periods and national content provisions.
CNH has provided the technical and economic details for this next round here.
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