On November 30, 2015, the Ministry of Finance and Public Credit ("SHCP") issued a press release informing that the minimum percentages to be awarded during the Third Call of Round One (the "Call") have been determined. This Call was announced during the month of May 2015.
As part of the economic conditions for the Call, an increase in the minimum work program for each block and an additional royalty, were established as variables to be awarded. Final values for both variables will be determined through a competitive and transparent bid.
Considering the above, SHCP announced that the minimum required percentages of the increase to the minimum work program for all the awarded blocks will be cero percent.
Unlike production-sharing contracts established for the first two calls, contracts under a licensing modality applied in this Call, state that the State will receive a proportion of the gross income from each project as an additional royalty, which is an awarded variable, thereby carrying a greater weight in proposal evaluations.
Considering the above, and that the Mexican State must guarantee that it will receive the oil income resulting from the extraction of hydrocarbons at the same time as the development of the national petroleum industry is being promoted, SHCP disclosed the following minimum percentage for the additional royalty for each block:
Click here to view the table.
The opening of proposals and award decision will take place on December 15, 2015