Mexico sets minimum bid on auctions

Oil and gas companies bidding for offshore fields in upcoming auctions in Mexico must offer the government a share of the pre-tax profits from the contracts that exceed minimum-bids of 30.2 percent-35.9 percent the country’s Finance Ministry announced Monday.

The pre-condition for the first contract containing the Amoca, Mizton and Tecoalli fields is set at 34.8 percent. The second contract for Hokchi field is set at 35.9 percent. The third contractual pre-condition for the Xulum field is 30.2 precent, while the fourth for the Ichalkil and Pokoch fields was established at 33.7 percent. The fifth contract for Mision, Nak fields are to be offered at 35.2 percent.

All contracts will be awarded by the National Hydrocarbons Commission, the country’s regulatory body, based on which company can offer the biggest share of pre-tax profits to the government.

The contracts are for the exploration and production of the Gulf of Mexico’s shallow water areas located close to Ku-Maloob-Zaap and Cantarell, Mexico’s most productive offshore fields.

For more information on Mexico, click here.