Offering 26 onshore conventional fields, Mexico has announced the next phase of Round One bidding. All the proposals are located in the Burgos, Tampico-Misantla, and Salinas-Sureste Basins.
New Mexican E&P companies are able to participate in this round of bidding as the qualification criteria are very different from the shallow-water development rounds.
Pablo Medina, Research Analyst at Wood Mackenzie elaborates: “Unlike the previous two rounds, this round will use a license contract with bidding variables including additional royalty and work commitment. The regime has the potential to be very attractive, although it will ultimately depend on the minimum acceptable bid level that will be announced at a future date.”
Concluding, Medina emphasises that this round could be very attractive for smaller players but it will not lift Mexico's oil production significantly.
Adapted from press release by Joseph Green