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