From BN Americas
Mexico has published the definitive bidding rules and contract terms for the fourth auction of Round One, for deepwater fields, which is scheduled to take place on December 5.
The energy ministry (Sener), hydrocarbons commission (CNH) and finance ministry (SHCP) have made modifications to the original rules and terms, based on best international practices and with the aim of providing legal certainty to operators and safeguarding the interests of Mexico.
According to an SHCP press release, the auction will promote more investment and boost job creation and hydrocarbons production, among other benefits.
A total of 26 firms are now signed up to take part in the auction.
Among the changes made to the terms published on August 24 is an adjustment to the amount of capital required from the company acting as guarantor.
The modifications also include the addition of a final transition phase for contracts. Changes to the clauses on contractor access to technical information have also been made.
Contractors will have the option to use diverse financial instruments to cover risks, and the criteria governing how accidents are classified have been modified.
The Permanent Court of Arbitration in The Hague has been established as the designated dispute resolution body in the event of proceedings between parties.
The full list of terms and conditions for firms participating in the auction can be consulted here.
A total of 26 firms have prequalified to take part in Mexico’s December 5 deepwater auction, according to national hydrocarbons commission CNH.
Of the 31 firms that have expressed an interest, 23 have been granted access to the CNH data room, and 21 have accessed it.
Prequalified firms include state oil firm Pemex, BHP Billiton, BP,Chevron, Repsol, Shell, Statoil and Total.
The auction will put four contract areas up for grabs in the Perdido belt and Salina basin in the Gulf of Mexico. The process is expected to attract investment of around US$44bn, according to energy ministryestimates.
Mexico’s three previous rounds, for shallow water fields last July 15 and September 30, and onshore areas on December 15, attracted smaller, local players.
The deepwater auction will be “the jewel in the crown,” energy minister Pedro Joaquín Coldwell has said.
