Member Article

As part of the implementation of the Mexican energy reform, the Mexican government has selected certain fields that will gradually be tendered to foreign and domestic companies for hydrocarbon exploration and production projects. Round One comprises 109 blocks for exploration and 60 blocks for production, and includes new areas of different sizes and types of resources, including: (i) deep-water; (ii) shallow-water; and (iii) on-shore fields. Together, these blocks cover approximately 28,500 km2.

As previously reported, the National Hydrocarbons Commission (Comisión Nacional de Hidrocarburos) (“CHN”) called three international public bids: one for 14 exploration and production blocks in shallow waters, another for 9 production blocks in shallow waters, and another for 26 onshore production blocks. The winners were awarded production sharing contracts in the first two public bids and with license contracts in the third one, respectively. The fourth public bid is significant because it is the first bid covering deep-water blocks and is the second time license contracts are used in Mexico. Also, it is anticipated to attract up to $44 billion in new investment.

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