Derived from the implementation of the Energy Reform approved in 2013, specifically in relation to the bidding procedures already carried out by the National Hydrocarbons Commission ("CNH") for the award of contracts for the exploration and extraction of hydrocarbons, on July 19, 2016, the Governing Body of the CNH held an extraordinary meeting whereby it approved the issuance of the call for the first tender of Round Two, identified as CNH-R02-L01/2016 for contracts for exploration and extraction of hydrocarbons in shallow waters.
As approved by the CNH, the first tender will comprise 15 shallow water contract areas located off the coasts of the states of Veracruz, Tabasco and Campeche.
Of the 15 contract areas mentioned above, 5 will be tendered for hydrocarbon exploration and extraction projects and 10 for exploration activities.
According to data provided by the Ministry of Energy ("SENER"), the 15 areas subject to this bid comprise a total area of 8,908 km2 with approximately 1,586 million barrels of crude oil equivalent of prospective resources including light, heavy and extra heavy gas and oil.
The type of contracts to be used for the above mentioned areas will be production sharing. Likewise, it is considered that each contract will have an initial term of 30 years with two extensions of 5 years each.
Regarding the calendar, according to information from the CNH, from August 01, 2016 to December 02 of the same year, participants will be able to access the virtual data room to review the available information. Likewise, from December 15, 2016 to December 23 of the same month and year, appointments will be held to submit pre-qualification documents. The presentation and opening of proposals is expected to take place on March 22, 2017.
On July 20, 2016, the call for bids is expected to be published in the Official Journal of the Federation, while the Bidding Terms and Conditions, as well as the model contract, will be published on the CNH's official website on the same day.
The lawyers of the Energy, Mines and Infrastructure area of the Firm are at your disposal for any questions or comments you may have.
ATTENTIVELY
Daniel Del Río
delrio@basham.com.mx
Juan Carlos Serra
serra@basham.com.mx
Jorge Eduardo Escobedo Montaño
jescobedo@basham.com.mx
Alejandra Páges Hernández
apages@basham.com.mx
Mexico City, July 19, 2016.
