Pursuant to the implementation of the Energy Reform approved in 2013, specifically regarding the bidding procedures carried out by the National Hydrocarbons Commission ("CNH") for the awarding of exploration and extraction of hydrocarbons contracts, on July 19th, 2016, the Government Body of CNH celebrated an extraordinary meeting by means of which it approved the first tender procedure related to Round Two, identified as CNH-R02-L01/2016, for the awarding of exploration and extraction of hydrocarbons contracts in shallow waters.
According to what was approved by CNH, first tender includes 15 contractual areas in shallow waters located within the coasts of the states of Veracruz, Tabasco and Campeche.
Out of the 15 contractual areas mentioned before, 5 will be tendered for exploration and extraction projects and 10 for activities related to exploration.
Pursuant to information provided by the Energy Ministry ("SENER"), the 15 areas which comprise the referred tender cover a total surface of 8,908 km2 with prospective resources of approximately 1,586 million barrels of crude oil equivalent in which, among the resources, are gas as well as light, heavy and extra heavy oil.
The contractual scheme to be implemented for the above mentioned contractual areas will be production sharing contract. Furthermore, it is considered that each contract will have an initial term of 30 years with two renewal periods of 5 years each.
In connection with the calendar, according to CNH information, from August 1st, 2016 until December 2nd of the same year, participants will be able to access the virtual data room in order to review the available information. Additionally, from December 15th, 2016 to December 23rd of 2016, prequalification appointments will be given in order to submit prequalification documents. Filing and opening of economic proposals is expected to take place on March 22nd, 2017.
The tender calling is expected to be published in the Federal Official Gazette on July 20th, 2016, while the bidding guidelines as well as the model contract will be published on the official website of CNH on the same day.
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