The government is offering 14 shallow water blocks of the Gulf of Mexico valued at an estimated total of $17 billion. US, European, and Asian companies will be competing for contracts in the first of five installments in the so-called Round One.
First Of Five
The other four installments in Round One are as follows:
- September 30: The award of nine already-discovered shallow water fields in five blocks;
- December 15: The award of 26 onshore fields;
- 1Q16: Offshore Deepwater blocks and extra-heavy oilfields;
- 1Q16: Shale prospects
A Closer Look At Wednesday's Auction
The Wednesday auction marks the first time private and foreign oil companies have been allowed to participate in the Mexican O&G sector, and the first time in history that Mexican oil contracts have been tendered. The 14 blocks are situated in a region of the GOM where Pemex says it has had success over the years.
While foreign companies have eagerly awaited this event, the Mexican government has downplayed expectations of a large sale, estimating that between one-third and half of the 14 blocks will be awarded.
Seven consortiums and 18 individual firms have qualified for the tender. US majors Chevron and ExxonMobil, India's ONGC Videsh, Anglo-Australian BHP Billiton, ~ Russia's Lukoil (see below), France's Total and China's Nexen are among the global companies individually competing in Wednesday's tender.