Mexico to reveal tender profit demands

Mexico will disclose its minimum profit demands for the next phase of its Round One tender prior to the submission of bids, the National Hydrocarbons Commission (CNH) announced on Tuesday, according to the Reuters news agency.

The CNH hopes releasing this information will improve the results of the second phase of Round One, as the first phase, for shallow-water acreage in the Gulf of Mexico, fell short of the country’s expectations.

The previous tender, which concluded in July, saw just two blocks awarded and bids submitted for only six out of 14 blocks offered.

Of the bids received, four had been thrown out because they did not meet the government’s demand for 40 percent of pre-tax profits from recovered hydrocarbons, a requirement that was announced after bids were submitted.

In August, the CNH announced it would lower the amount of money companies must set aside to cover the costs of potential accidents.

Bids will be submitted for the second phase on September 30.

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