On June 19, 2017, the National Hydrocarbons Commission carried out the filing of the economic proposals act related to the biding process CNH-R02-L01/2016 for the awarding of production sharing contracts for exploration and extraction of hydrocarbons in shallow waters.
Pursuant to the results of the bid procedure, 10 contractual areas, from a total of 15, were awarded to different companies and consortiums. The remaining 5 areas may be contested by federal government in future bid procedures.
|Area||Company||State Participation if the operative Profitability||Additional Investment Factor||Total Value|
|2||DEA Deutsche and PEMEX||57.92||1.0||83.49.3|
|6||PC Carigali and Ecopetrol Global||65.19||1.0||71.178|
|7||ENI México, Capricorn Energy and Citla Energy||75.00||1.5||84.825|
|8||PEMEX and Ecopetrol||20.10||0.0||20.100|
|9||Capricorn Energy and Citla Energy E&P||75.00||1.5||84.825|
|11||Repsol Exploración and Sierra Perote||62.28||0.0||62.280|
|12||Lukoil International Holding Upstream||75.00||1.0||81.550|
|14||ENI México and Citla Energy||32.27||0.0||32.270|
|15||Total E&P and Shell||30.11||0.0||30.110|
Contracts derived from the awards represent investments of approximately USD $8.2 billion during the next 30 – 40 years.
It is important to mention that, derived from the offers made by winning bidders, especially regarding State Participation in the Operative Utility, the State will receive, on average, between 77.4% and 83.9% of the generated utilities, as well as a cash payment of 30 million dollars for a tie related to contractual area No. 9.
The lawyers of the energy, mining and infrastructure area of our firm are available for any questions or comments on the above.
Juan Carlos Serra
Mexico City, June 23rd, 2017.