Three blocks awarded in Mexico’s Round One second tender
Mexico’s National Hydrocarbons Commission (CNH) awarded three of five shallow-water blocks in its Round One second tender, a more successful auction than the first in July that received just 2 bids on 14 blocks. All five blocks are part of the Southeast basin in the Gulf of Mexico.
Additional information from Eni was added to this story on Oct. 1.
Mexico’s National Hydrocarbons Commission (CNH) awarded three of five shallow-water blocks in its Round One second tender, a more successful auction than the first in July that received just 2 winning bids on 14 blocks (OGJ Online, July 16, 2015). All five blocks are part of the Southeast basin in the Gulf of Mexico.
Eni SPA took the first block covering 67 sq km and Amoca, Mizton, and Tecoalli fields, which altogether contain 2P reserves of 107 million bbl of light oil and 69 bcf of natural gas found in Pliocene sands in 33 m of water. The result marks the Italian multinational firm's entrance into the country. The block will be operated by newly formed unit Eni Mexico.
"Eni will now move on with the appraisal campaign of the fields with the target to identify a synergic and fast track development plan," the company indicated in an Oct. 1 news release.
APan American Energy LLC-led consortium with E&P Hidrocarburos y Servicios SA de CV won the second contract covering40 sq km and Hokchi field, which has 2P reserves of 61 million bbl of light oil and 29 bcf of gas found in Tertiary sands in 28 m of water.
AFieldwood Energy LLC-led consortium Petrobal SAPI de CV received rights to the fourth blockcovering 58 sq km and Ichalkil and Pokoch fields, which together have 2P reserves of 68 million bbl of light oil and 92 bcf of gas found in in Cretaceous and Jurassic limestone in 45 m of water.
Lourdes Melgar, Mexico’s deputy energy secretary for hydrocarbons, says she expects production from the blocks to begin by the end of the current administration in 2018. The three contracts could ramp up to a combined peak output of 90,000 b/d.
No bids were received for Blocks 3 and 5. Block 3 covers 59 sq km and Xulum field, which contains 2P reserves of 17 million bbl of heavy oil and 2 bcf of gas found in Cretaceous limestone in 102 m of water. Block 5 encompasses 55 km and Mison and Nak fields, which have 2P reserves of 44 million bbl of light oil and 103 bcf of gas found in Cretaceous and Jurassic limestone in 32 m of water.
While 14 entities comprising individual companies and consortia prequalified for the auction, only nine submitted bids.
In addition to those mentioned above, entities offering bids were DEA Deutsche Erdoel AG, Statoil E&P Mexico SA de CV, Lukoil Overseas Netherlands BV, and CNOOC International Ltd.; and consortia of Petronas Carigali International E&P BV and Galp Energia E&P BV; and Talos Energy LLC, Sierra Oil & Gas S de RL de CV, Carso Oil & Gas SA de CV, and Carso Energy SA de CV.
During the initial tender, a consortium of Talos Energy, Sierra Oil & Gas, and Premier Oil PLC submitted both bids.
Mexico’s Finance Ministry announced on Sept. 14 the new minimum acceptable bids for the shallow-water development phase. Research and consultancy firm Wood Mackenzie Ltd. deemed them as “internationally competitive.”
“Ultimately, we think this will result in at least three of the five areas on offer to be awarded,” a WoodMac research analyst said at the time (OGJ Online, Sept. 17, 2015).
An onshore tender is slated for Dec. 15.
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