Mexico auctions onshore blocks
Mexico 
MEXICO CITY, July 13, 2017 – Mexico’s National Hydrocarbons Commission (CNH) held a twin tender for onshore E&P blocks on Wednesday, awarding 21 of 24 blocks on offer.
Round 2.2 had a 70% success rate, with only Burgos contract areas 2, 3 and 6 not awarded. The big winners of Round 2.2 were Sun God Energía de México and Jaguar Exploración y Producción de Hidrocarburos, which partnered to take six blocks.
The tender’s most hotly contested block was Burgos Area 7, which attracted three bidders. Offering an additional royalty of 25%, the Sun God-Jaguar partnership tied with a consortium of Newpek Exploración y Extracción and Verdad Exploration Mexico. The former beat out the latter with a USD 4.13-million cash bonus.
Of the 10 blocks auctioned, nine were located in the Burgos Basin, while the final licence area was located in the country’s southern region.
In Round 2.3, the CNH awarded all of the 14 blocks on offer. The locations of the tendered areas are scattered across Mexico in the Burgos, Tampico-Misantla and Veracruz basins, as well as the Chiapas Fold Belt and Southeastern Basins.
Proposals for Southeastern Basins Area CS-01 were competitive, resulting in an eight-way tie. Due to its cash bonus offering of USD 28.89 million, Jaguar Exploración y Producción de Hidrocarburos was granted the block.
The second-most sought after block was Tampico-Misantla Area TM-01, which attracted seven bidders. Jaguar Exploración y Producción de Hidrocarburos was again triumphant, providing the largest cash bonus of USD 26.1 million to break the tie.
That company ended up taking home five licences from Round 2.3 in total, making it the most successful bidder overall.
All of the 10 companies that won licences in rounds 2.2 and 2.3 are completely new E&P players in Mexico. As a result of the two tenders, there will now be nearly 75 private players participating alongside NOC Pemex in the domestic upstream sector, which was opened through energy reform legislation passed in 2014.
The complete results of Round 2.2 are as follows:
1. Burgos Area 1: Iberoamericana de Hidrocarburos and Servicios PJP4
2. Burgos Area 2: Not awarded
3. Burgos Area 3: Not awarded
4. Burgos Area 4: Sun God Energía de México and Jaguar Exploración y Producción de Hidrocarburos
5. Burgos Area 5: Sun God Energía de México and Jaguar Exploración y Producción de Hidrocarburos
6. Burgos Area 6: Not awarded
7. Burgos Area 7: Sun God Energía de México and Jaguar Exploración y Producción de Hidrocarburos
8. Burgos Area 8: Sun God Energía de México and Jaguar Exploración y Producción de Hidrocarburos
9. Burgos Area 9: Sun God Energía de México and Jaguar Exploración y Producción de Hidrocarburos
10. Southern Region Area 10: Sun God Energía de México and Jaguar Exploración y Producción de Hidrocarburos
The complete results of Round 2.3 are as follows:
1. Burgos Area BG-01: Iberoamericana de Hidrocarburos and Servicios PJP4
2. Burgos Area BG-02: Newpek Exploración y Extracción and Verdad Exploration Mexico
3. Burgos Area BG-03: Newpek Exploración y Extracción and Verdad Exploration Mexico
4. Burgos Area BG-04: Iberoamericana de Hidrocarburos and Servicios PJP4
5. Tampico-Misantla Area TM-01: Jaguar Exploración y Producción de Hidrocarburos
6. Veracruz Area VC-01: Shandong Kerui Oilfield Service Group, Sicoval MX and Nuevas Soluciones Energéticas
7. Veracruz Area VC-02: Jaguar Exploración y Producción de Hidrocarburos
8. Veracruz Area VC-03: Jaguar Exploración y Producción de Hidrocarburos
9. Southeastern Basins Area CS-01: Jaguar Exploración y Producción de Hidrocarburos
10. Southeastern Basins Area CS-02: Shandong Kerui Oilfield Service Group, Sicoval MX and Nuevas Soluciones Energéticas
11. Southeastern Basins Area CS-03: Shandong Kerui Oilfield Service Group, Sicoval MX and Nuevas Soluciones Energéticas
12. Southeastern Basins Area CS-04: Carso Oil & Gas
13. Chiapas Fold Belt Area CS-05: Carso Oil & Gas
14. Southeastern Basins Area CS-06: Jaguar Exploración y Producción de Hidrocarburos
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