Pemex’s Workshop on the Third Draft of the Multiple Service Contract


On January 20, 2003, we reported on Pemex’s third draft of the Multiple Service Contract (“MSC”) (as posted on Pemex’s web page on January 2, 2003).  Last week, Pemex held a well-attended workshop in Houston, Texas, on the MSC, at which it addressed a number of matters, notably including:

  • The first round will cover the Burgos basin, which basically follows the South Texas gas field trends from Laredo to the coast.  Pemex identified additional non-associated gas basins that it might include in future bid rounds.

  • The target date for opening the data rooms for the first bid round is February 17, 2003.  According to Pemex, a significant amount of information will be available through a free on-line service at; other information, however, will have to be purchased.  Pemex will also have a physical data room in Taumalipas.

  • Pemex announced that the bidding procedures and guidelines will be available on its web site within the next month or so.  To various questions on bidder qualification, Pemex responded that the technical and financial qualifications can be satisfied by the collective qualifications a consortium of bidders, rather than independently by each member of the consortium.  Also, Pemex clarified that contracts will be awarded to the bidder (or consortium) that offers the highest percentage discount off the reference work unit prices to be published by Pemex in the bidding materials.

  • The new version of the MSC (as posted on Pemex’s website on January 17, 2003) alleviates earlier concerns over prior drafts  that the monthly payment cap is tied to Pemex’s reception facilities rather than to the contract area’s delivery capacity.  The new draft predicates the monthly payment cap on the contract area’s delivery capacity, without reference to Pemex’s capacity to receive gas at the delivery points.  There remain, however, some drafting issues on the appropriate testing method to be employed when Pemex’s reception capacity is limited.

  • Pemex announced that it intends to design a streamlined procedure and form of contract to motivate participation in small blocks by smaller companies.  Such a contract, when ready, will be posted on Pemex’s website.  Representatives of Pemex at the work-shop speculated that the contract might be for a shorter term, might not include the concept of non-compensable work units, and will likely contain other changes to reduce the size and complexity of the arrangement.  Although this project will be designed for smaller companies, it is not a set-aside and larger companies will be allowed to participate.

    For the information in Spanish (the official language of the agreement), see; for English language translations, see

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