Larry Pascal and Hunt Buckley in Inter-American Dialogues: How Is Mexico's Round One Oil Auction Shaping Up?

1/16/2015

QUESTION - Mexico's government in December unveiled the terms of production-sharing contracts for 14 shallow-water exploration and production blocks and issued a call for bids as part of the first phase of Round One, the country's first public bid auction since it opened up its oil and gas sector to foreign and private investment.In total, Round One will include 169 blocks, with contracts expected to be awarded later this year. How is Mexico's Round One shaping up? Are investors interested in the areas on offer and the terms provided? Will lower oil prices or other headwinds dampen investor enthusiasm?

ANSWER - Larry B. Pascal, member of the Energy Advisor board and chair of the Americas Practice Group at Haynes and Boone in Dallas and William "Hunt" Buckley, partner at the firm in Mexico City: "As part of the implementation of the energy reform, the Mexican government has selected certain areas and fields out of Round One that will be tendered for private-industry participation in hydrocarbon exploration and production projects. Round One comprises 109 blocks for exploration and 60 blocks for production and includes new areas of different sizes and types of resources, including deep-water, shallow-water and onshore fields ..."

Excerpted from Inter-American Dialogues on January 16, 2015. To view the entire article, please click on the PDF link below.

Inter-American Dialogues - How is Mexico's Round One Oil Auction Shaping Up

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