Bass Australia onshore

CNH announces changes to Mexico bid round

MEXICO CITY, November 12, 2015 – Mexico’s National Hydrocarbons Commission announced major changes for both the Third Call Bidding Process and its contract on Monday. These include alterations to the calendar and further mechanisms for the award process, as well as new requirements for guarantees, among others.

Changes to the schedule include the extension of the deadline for visiting the fields to November 27 and the review of the prequalification binders, changed from November 20 to November 25.

Furthermore, the period for the signing of contracts was extended to 140 days, while depth limits were defined for all blocks with the majority having no limit.

Also, companies are now allowed to bid on all blocks regardless of their net worth assets. At the same time, they can only be awarded as many blocks as their net worth assets allow for.

 

Type 2 blocks will be awarded first, then type 1 blocks. Mexico’s Ministry of Finance will publish minimum values by November 30.

The main modifications to the licence contract involved the execution guarantee – a contractor now has the option to submit either a letter of credit or a surety bond – while for brownfield areas, a provisional plan must be submitted to safeguard the maintenance of production, submitted no more than 75 days after the award is made.

Insurance coverage standards were set at a minimum of $150 million for civil liability and a minimum of $100 million for control of wells.

The National Hydrocarbons Commission Committee also noted that contractors would be permitted to carry out exploratory activities at additional depths.

For more news and features on Mexico, click here. 

Read our latest insights on: