Maximino-Nobilis farm-out terms set

MEXICO CITY, September 18, 2017 – Mexico’s E&P regulator will publish bidding terms on Monday for the deepwater Maximino-Nobilis farm-out, located in the Gulf of Mexico.

The National Hydrocarbons Commission (CNH) will offer individual bidders a 51% stake in a partnership with state-owned Pemex Exploración y Producción (PEP) under a licence agreement. If a consortium of partners is chosen, then the operator would have a minimum 30% stake while PEP would hold a 49% interest.

To be eligible to participate, bidders must have operating experience in water depths of at least 1,500 metres and produce 50,000 bopd in deepwater and ultra-deepwater projects. The farm-out winner will also be required to carry PEP for USD 815 million of project costs.

According to CNH data, the 1,550-square-kilometre field will require an estimated investment of around USD 10 billion during the 35-year contract lifecycle, which can be extended for 10 years, followed by an additional five years.

The tender is scheduled to take place on January 31, 2018, alongside deepwater Round 2.4.

Maximino-Nobilis will be the fifth PEP farm-out to be auctioned. The CNH awarded the first farm-out, the deepwater Trion field, to BHP Billiton in December 2016. On October 4, three onshore areas – Ayin-Batsil, Ogarrio and Cárdenas Mora – will be offered to interested parties.

Situated in the Perdido Fold Belt near the US-Mexico border, Maximino-Nobilis is expected to hold 3P reserves of nearly 500 million boe in mainly light crude. PEP discovered Maximino in 2013 and Nobilis in 2016.

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