Today, Nov. 7, Round 1.3 block winner Canamex Energy Holdings, which is a consortium between Canamex Dutch, Perfolat de México and American Oil Tools, was given permission by the CNH to decline its E&P contract in their awarded block called Moloacán, located in Veracruz. The operator cited its high and “unviable” additional royalty of 85.69 percent as the main reason for declining the contract.
Moloacán is a wet gas field of 46 km2 with 221.7 million bcoe and 121.9 billion cubic feet of natural gas. The company will have to pay a fine of US$1,917,500 to the Mexican Petroleum Fund for cancelling the contract. The cancelation of this contract will be the first time this procedure has been enacted in Mexico’s post-energy reform reality.
At the time of the licensing round Moloacán was the site of demonstrations by PEMEX workers protesting the allocation of the field to private companies. In a further turn of bad publicity for the field it was reported that trucks passing through also were suffering from extorsion by organized crime groups.
As of October 2017, 72 companies have won contracts in the CNH’s licensing rounds for productive blocks. Within the industry there is speculation on how many of the bids in fact were viable and whether all contracts which actually be completed to term.