CNH approves terms for Round 3.2, farm-outs

MEXICO CITY, June 20, 2018 – Mexico’s National Hydrocarbons Commission (CNH) has approved the new bid terms for the upcoming Round 3.2 tenders and NOC Pemex’s farm-outs, amending its system of setting maximum and minimum additional royalty values, international media reported Tuesday.

For the 37 onshore blocks to be offered in September’s Round 3.2 auction, the maximum additional royalty will be 25-40%, with the minimum set at 2.5-5%.

Six of the farm-outs scheduled for bidding at the end of October call for an additional royalty payment of 15% and the seventh requires one of 6%.

Ties will be broken by whichever bidder offers the largest cash payment. Bids on the farm-outs will also require offers of initial payments to Pemex for its investments in each area.

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