Mexico’s Round 1, phase two results

MEXICO CITY, October 1, 2015 – Mexico’s National Hydrocarbons Commission (CNH) has declared Round 1, phase two of bidding for offshore blocks “a success,” the agency’s head said at a press conference in Mexico City.

“The results are very satisfactory, we are very happy. We confirm the success of the energy reform. It is a great result for Mexico,” CNH president Juan Carlos Zepeda said to reporters.

The results of the auction were as follows:

Block 1 was awarded to Italian energy giant Eni, which bid 83.75 percent of pretax profits to the state. The asset contains the Amoca, Mizton and Tecoalli oilfields, which have proven and probable reserves of 107 million barrels of light oil and 1.95 bcm (69 bcf) of gas. Nine companies bid on the rights to block 1.

Block 2 was awarded to a joint venture of Argentine upstream companies Panamerican Energy and E&P Hidrocarburos y Servicios, with a bid of 70 percent of pretax profits. The asset contains the Hokchi field, with proven and probable reserves of 61 million barrels of light oil and 821 mcm (29 bcf) of gas.

Block 4 was awarded to a joint venture of US energy company Fieldwood and Mexican independent Petrobal, with a government take of 74 percent of pretax profits. The asset contains the Ichalkil and Pokoch oilfields, with proven and probable reserves of 68 million barrels of light oil and 2.6 bcm (92 bcf) of gas.

Blocks 3 and 5 were declared void, as they received no bids.

Mexico’s Round 1, phase one auction, held on July 15, awarded two blocks of five to foreign operators, the first time the country had opened its fields up for international exploration and operatorship in decades. Exploratory risk is low in the phase two blocks, Zepeda noted, as the blocks contain fields that have already been discovered.

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