ON 27 FEBRUARY, THE MEXICAN HYDROCARBONS COMMISSION (CNH) PUBLISHED THE RULES FOR ITS SECOND CALL TO TENDER IN THE AUCTION TO AWARD SHARED PRODUCTION CONTRACTS1 TO EXTRACT OIL IN SHALLOW WATERS OF THE GULF OF MEXICO.

The second tender of Ronda 1, which includes nine blocks with a surface area of 281 square kilometres, with total estimated reserves of 671 million barrels of crude oil equivalent and a prospective production of 124,000 b/d. Those nine blocks will be grouped into five contracts.

The auctioned blocks are located near Cantarell3 and follow on from the first 14 blocks auctioned under the first tender. Interested companies should bid for the following blocks:

  • Block 1: Amoca/ Miztón/ Tecoalli – 68.0 Km 2
  • Block 2: Hokchi – 42.0 Km2
  • Block 3: Xulum – 58.8 Km2
  • Block 4: Ichalki/ Pokoch – 58.0 Km2
  • Block 5: Misón/ Nak – 54.0 Km2

A total of 280.9 Km2 are up for auction.

  1. Technical requirements
  2. Financial requirements
  3. Timeline

1. TECHNICAL REQUIREMENTS

1.- Companies wishing to participate in the tender must provide evidence that they have proven experience as an operator between 2010-2014, although the project may have begun before or ended within that period:

  • At least in three extraction projects, or
  • With capital investments in exploration and production projects that, in aggregate, amount to at least one billion dollars.

2.- That they have been an operator in shallow-water or deep-water projects:

  • In at least one shallow-water or deep-water extraction project; and
  • Of a minimum aggregate production of ten thousand barrels of crude oil equivalent per day in the period 2010-2014

3.- That the personnel proposed for key management positions has at least 10 years' experience in the management and operation of in shallow-water or deep-water extraction projects.

4.- Finally, that they have experience in the management of industrial safety and environmental protection systems in the last five years, experience in the implementation and operation of industrial safety, operational safety and environmental protection management systems in extraction facilities or projects.

2. FINANCIAL REQUIREMENTS

The companies that participate in the auction must provide evidence of the following, indistinctly:

1.- Total assets with a value of at least 10 billion dollars and that it has an investment grade credit rating. (According to Fitch Ratings, Moody’s Investors Service or Standard & Poors), or

2.- Sufficient book capital, of at least one billion dollars.

  • If companies participate through a consortium or association, they must provide evidence that they have sufficient book capital, of at least 600 million dollars, provided that the consortium meets the requirements set forth in the additional criteria.
  • Additional criteria for consortiums:
    • If the operator does not meet the above financial requirements, the members of the consortium or association must provide evidence of an aggregate book capital of at least one billion dollars, which must be reached with the book capital of no more than three members (including the operator).
    • The operator must have at least a stake of one third in the consortium and no other member may have a stake that is greater than that held by the operator.

3. TIMELINE

Tender and terms and conditions

  • 27 February: Publication of the call to tender and the tender rules
  • 12 June: Publication of updated tender rules (including the contract)
  • 14 August: Publication of final tender rules

Data room

  • 27 February to 1 June: Period to apply for access to the data room and to pay the required fee
  • 27 February – 29 September: Access to the data room

Clarifications to the terms and conditions and the contract

  • 27 February – 5 June: First stage of clarifications (access to the data room)
  • 27 February – 15 June: Second stage of clarifications (prequalification)
  • 27 February – 12 August: Third stage of clarifications (submission and opening of bids, award, decision and contract)

*The third tender is due to be launch in or around April