By November 14, 2016 Read More →

14 contracts for onshore Mexican oil exploration to be auctioned in July

Mexican oil exploration

Mexican oil exploration contracts are offered in the Burgos basin, Tampico-Misantla, the Southeast basins and the state of Veracruz. Oil & Gas Mexico photo.

Mexican oil exploration contracts winner will have to negotiate agreement with Pemex

MEXICO CITY, Nov 14 (Reuters) – 14 Mexican oil exploration and extraction contracts from onshore areas will be auctioned as part of the third phase of its Round Two oil tender, the national oil regulator CNH said on Monday.

The blocks to be tendered include 25 fields and areas in the gas-rich Burgos basin, Tampico-Misantla, the Southeast basins and in the state of Veracruz, the CNH said.

The contracts will be awarded in July 2017.

Of the blocks, the five areas for exploration and production to be offered in the Southeast basins are expected to contain light crude and gas, the remaining fields offered could contain rich gas, lean gas, crude or condensates, according to the CNH.

Hoping to reverse slumping crude output, Mexico ended the decades-long monopoly of nationaloil company Pemex in 2013, opening the door to more private capital in the sector.

A sharp fall in crude prices over the past couple years, however, has made that harder.

CNH Commissioner Hector Acosta said that one of the auction blocks is in a cross-border area and the contract winner would have to negotiate an agreement with Pemex, which is obligated to have at least a 20-percent stake in such fields.

He also said the Tampico-Misantla block could potentially impact conservation areas, but Mexico’s Energy Ministry has not yet divulged any measures to avoid harming the protected zones.

(Reporting by Adriana Barrera; Writing by Natalie Schachar and Christine Murray; Editing by Sandra Maler)

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