• 6 minutes Corporations Are Buying More Renewables Than Ever
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 23 minutes Starvation, horror in Venezuela
  • 2 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 2 days The Discount Airline Model Is Coming for Europe’s Railways
  • 1 day Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 1 day Renewable Energy Could "Effectively Be Free" by 2030
  • 1 day Saudi Fund Wants to Take Tesla Private?
  • 2 days Pakistan: "Heart" Of Terrorism and Global Threat
  • 2 days Venezuela set to raise gasoline prices to international levels.
  • 1 day Mike Shellman's musings on "Cartoon of the Week"
  • 1 hour Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 1 hour China goes against US natural gas
  • 2 days Are Trump's steel tariffs working? Seems they are!
  • 2 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 19 hours Why hydrogen economics does not work
Iran’s Latest Tactic To Save Market Share

Iran’s Latest Tactic To Save Market Share

Iran cut oil prices for…

Philippines Cracks Down On Fuel Pirates

Philippines Cracks Down On Fuel Pirates

Though fuel smuggling in Southeast…

Mexico’s First Big Oil Tender: Here Are The Results

GoM offshore platform

On Monday, Mexico announced the results of its historic tender of 10 offshore drilling blocks in the Trion field, which is divided into the Perdido Fold Belt and the Salina Basin, both located in the nation’s namesake Gulf.

 

(Click to enlarge)

Perdido Fold Block Tenders

Block 1: China Offshore Oil Corporation (CNOOC) won Perdido’s first block with a sky-high royalty bid of 17 percent and a two-well commitment.

Block 2: Total and Exxon took the second Perdido block with a five percent royalty and a two-well offer.

Block 3: The Chevron, Pemex and Inpex partnership won the belt’s third block with a 7.44 percent royalty, but without a well commitment.

Block 4: Said to hold 540.5 million barrels of oil equivalent in light and extra light crude, this 725-square mile block has been awarded to CNOOC as well. The company offered a 15 percent royalty bid and a one-well guarantee.

Salina Basin Blocks

Block 1: The Statoil, British Petroleum and Total consortium won the first block offered in Salina, with a 10 percent royalty and a single-well commitment.

Block 2: Reuters reports that no company had submitted bids for this block.

Block 3: A ten percent additional royalty and a single-well commitment got the Statoil, BP and Total consortium this block – making it the trio’s second win.

Block 4: Salinas Sureste block 4 went to Petronas and Sierra, due to their 22.99 percent royalty offer, without well commitments.

Block 5: The Murphy/Ophir/PC Carigali/Sierra Offshore group won this Salinas Sureste block with a 26 percent royalty and a single-well commitment.

Block 6: This one went deserted, too.

This auction is a huge milestone in Mexico’s comprehensive energy reform, which began at the end of 2013.

With Pemex’s monopoly now over after 75 long years, the auction will bring new foreign investment to the country, aiming at revitalizing the sector. As a result, the US Energy Information Administration (EIA) has upped Mexico’s 2040 oil and gas production forecast by 76 percent.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News