The next phase of Mexico’s Round One includes an offering of 26 onshore conventional fields in the Burgos, Tampico-Misantla and Salinas-Sureste basins, industry research firm Wood Mackenzie said May 19.
The key opportunities for companies looking for sizeable onshore fields will be the migrated service contracts and the Pemex joint ventures.
New Mexican E&Ps can participate in this round, which has different qualification criteria from the shallow-water development round. Wood Mackenzie research analyst Pablo Medina said this round’s licensing contract will have bidding variables that include additional royalty and work commitment. “Small players” could find the round beneficial, he added. The minimum acceptable bid level will be announced at a later date, he said.
The number of high-potential fields on offer is small, and this is less likely to appeal to larger international companies experienced in mature fields, Medina said.
Wood Mackenzie said that the lack of big opportunities suggests Pemex might not have relinquished a large number of high-potential fields in Round Zero. Most high-potential onshore opportunities either were kept by Pemex, or Mexico’s government will license them in later rounds on expectation of higher oil prices.
Medina added that this next phase of Round One will not significantly lift the country’s overall oil production.
Source: Wood Mackenzie
Recommended Reading
From Restructuring to Reinvention, Weatherford Upbeat on Upcycle
2024-02-11 - Weatherford CEO Girish Saligram charts course for growth as the company looks to enter the third year of what appears to be a long upcycle.
JMR Services, A-Plus P&A to Merge Companies
2024-03-05 - The combined organization will operate under JMR Services and aims to become the largest pure-play plug and abandonment company in the nation.
New Fortress Energy Sells Two Power Plants to Puerto Rico
2024-03-18 - New Fortress Energy sold two power plants to the Puerto Rico Electric Power Authority to provide cleaner and lower cost energy to the island.
Kimmeridge Fast Forwards on SilverBow with Takeover Bid
2024-03-13 - Investment firm Kimmeridge Energy Management, which first asked for additional SilverBow Resources board seats, has followed up with a buyout offer. A deal would make a nearly 1 Bcfe/d Eagle Ford pureplay.
SilverBow Rejects Kimmeridge’s Latest Offer, ‘Sets the Record Straight’
2024-03-28 - In a letter to SilverBow shareholders, the E&P said Kimmeridge’s offer “substantially undervalues SilverBow” and that Kimmeridge’s own South Texas gas asset values are “overstated.”