PEMEX Farm Out Tender Procedure CNH-A1 Trion/2016

Trion block is located in ultra-deep-waters of the Mexican Gulf in an area known as “Cinturon de Plegado” and the main purpose of National Hydrocarbons Commission (“CNH”) is to attract operating companies with proven capacity and experience in this type of areas in order to establish strategic alliances with PEMEX.
Below are the main aspects to be considered in this farm out procedure:
I. Bidding guidelines:
• Experience as an operator during the last ten (10) years with at least one project in ultra-deep-waters in depths of 1,500 meters.
• Production equal to or greater than 50 thousand barrels of crude oil equivalent daily in projects in deep-waters or ultra-deep-waters between 2011 and 2015.
• Technical capacity in industrial safety and environmental protection during the last five (5) years.
• For financial capacity:
 Operator must prove that it has (i) a net worth equal to or greater than US$5,000 billion or assets greater than or equal to US$25,000 billion; and (ii) capital investment in exploration and/or extraction projects for US$2,000 billion.
 Non-operator must have a net worth greater than or equal to US$250 million.
• Any party interested in this tender may only participate as a consortium, with the following participation percentages:
 Pemex Exploration and Production: 45%
 Designated operator: [30% – 45%]
 Operator: [10% to 25%]
 Non-operator: [up to 10%]
• Participating companies must obtain a license to use information that will be issued by CNH for an amount equal to or greater than Mx. Pesos$1,600,000.00.
II. License contract:
• Exploration takes a maximum term of 10 years: four (4) years for an initial exploration and two (2) additional terms of three (3) years each.
• Evaluation period for discovery considering a term of up to three (3) years.
• Development may take 22 years as of the approval of the development plan with two (2) possible extension terms, one for ten (10) years and the second one for twenty-two (22) years.
It is important to mention that license contract also provides: (i) performance guarantees; (ii) corporate guarantee; (iii) clauses related to industrial and environmental safety; (iv) work program and budget; (v) slowdown of the economy; (vi) contract termination.
Pursuant to the information provided by CNH, awarded winner must invest US$464 million before PEMEX makes any contribution.
III. Bidding schedule
 

                                                        

YOURS TRULY
 
 

 
Mexico City, August 29th 2016.