Friday 29 Mar 2024
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KUALA LUMPUR (June 20): National oil firm Petroliam Nasional Bhd's (Petronas) consortium with Colombia's Ecopetrol came out on top of a four-way contest for Area 6 of Mexico's second bid round for shallow-water oil and gas (O&G) acreage.

Energy portal Upstream Online yesterday reported that Mexico awarded 10 of 15 shallow-water areas on offer during its second bid round for shallow water acreage, with both global giants and local players participating and Pemex inking two more partnerships.

The report said bidding heated up as the day went on during Mexico's second bid round for shallow-water O&G acreage, with Eni taking three new offshore blocks and Pemex sewing up two new partnerships with companies with Dea Deutsche Erdoel and Ecopetrol.

Meanwhile, Anglo-Dutch supermajor Shell, after years of interest, also secured its first entry into Mexico, alongside French major Total taking Area 15 in the south-east basin, prospective for wet gas.

Upstream Online reported that companies pledged a total of nine wells over the course of the initial four-year exploratory period, as well as a base work programme that includes both seismic work and surface studies.

It said Eni, in a consortium with UK-listed Cairn and start-up Citla, came out on top of a five-way contest for Area 7 in the south-east region of the country. Its offer was for a 75% additional royalty to the state with a two-well work programme.

The block was one of the most highly contested of the day, and also received offers from groups led by Spain's Repsol, Germany's Dea Deutsche Erdoel, US independent Noble Energy and China's CNOOC.

"Area 6 was also quite competitive, with a consortium of Malaysia's Petronas and Colombia's Ecopetrol came out on top of a four-way contest," said the portal.

It said the high bid was for a 65.19% additional royalty, plus one well, enough to beat out offers from Dea-Pemex, Murphy-Talos and Repsol.

Mexico held its first-ever bid offering for shallow waters, Round 1.1, nearly two years ago in July 2015. Since then, regulators have significantly adjusted the terms involved as the country incorporated lessons learned from that initial proceeding as well as events for onshore and deep-water acreage.

 

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