Several international companies bid for in Mexico’s Round One, phase two today (30 September), with three successful bids in the shallow water areas of the Southeast basin, offshore Mexico.

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Although similar to Round One phase one, the Mexico’s National Hydrocarbons Commission (CNH) had different expectation for phase, as it came with lower risks. Phase two was much more successful than phase one, with three winning bids, and two blocks that received no bids.The big winners were Eni, and the consortia of Pan American Energy with E&P Hidrocarburos y Servicios, and Fieldwood Energy with Petrobral.

The shallow water areas up for bids include:

• Block 1: Winning bid is Italy’s Eni International iwth 83% profit share to the state, and a 33% increase in investment. Lukoil came in second. Block 1 located in the Southeast basin. It is 67sq km and includes the three fields: Amoca, Mizton and Tecoalli. The fields contain 2P reserves of 107 MMbbl of light oil, and 69 Bcf of natural gas at 33m water depth.
• Block 2: The winning bid goes to the consortia Pan American Energy with E&P Hidrocarburos y Servicios with 70% profit share, and 100% increase in investment. The consortia Fieldwood and Petrobal came in second.Block 2 is located in the Southeast basin. It is 40sq km and contains the Hokchi field, with 2P reserves of 61MMbbl of light oil, and 29 Bcf of natural gas at 28m water depth.
• Block 3: No bids were received. The area has been declared as void.
  Block 3 is located in the Southeast basin. It is 59sq km and contains the Xulum field with 2P reserves of 17 MMbbl of light oil, and 2 Bcf of natural gas, at 102 m water depth.
• Block 4: The winning bid goes to Fieldwood Energy with Petrobral with 74% profit share 0% increase in investment. No other companies bid for Block 4.Block 4 is in the Southeast basin. It is 58sq km and is comprised of two fields:  Ichalkil and Pokoch, with 2P reserves of 68 MMbbl of light oil, and 92 Bcf of natural gas, in 45m water depth.
• Block 5: No bids were received for Block 5 in Mexico’s Round One, phase two. The area has been declared void.Block 5 is in the Southeast basin. It is 55sq km and is comprised of two fields: Mision and Nak, with 2P reserves of 44 MMbbl of light oil, and 103 Bcf of natural gas, in 32m water depth.

Companies that competed for the shallow water areas include: Italian giant Eni, Norway’s Statoil E&P Mexico, Russia’s Lukoil Overseas Netherlands, China National Offshore Oil Corp., DEA Deutsch e Erodeal AG.

Consortia include Pan American Energy (PAE) with E&P Hidrocarburos y Servicios; and Petronas Carigali International E&P with Galp Energia E&P; Talos Energy with Sierra Oil & Gas, and Carso Energy; and Fieldwood Energy with Petorbal.

Earlier this month, Mexico’s Secretaría de Hacienda y Crédito Público (SHCP) released the minimum fiscal terms that must be met by companies in order to win development rights in the second phase of Round One.

Mexico’s highly anticipated, but highly disappointing Round One (phase one) was held on 15 July, and only awarded two areas in its historic offering of the country’s upstream opportunities to international co
mpanies for the first time in decades.

The consortia of Sierra Oil Gas, Talos Energy, and Premier Oil, was awarded Area 2 and Area 7, in the 14 shallow water areas off the coast of Mexican cities Veracruz and Tabasco, respectively.

Round Three’s public tender process is expected to be 15 December. Round Four will include areas in the deepwater Gulf of Mexico, with heavy crude areas, and Round Five will consist of nonconventional areas, which are still being analyzed due to current low oil prices.

Copyright: OE Digital