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Mexico : 2nd phase of Round One oil auction introduced by Mexico
Publish Date : 04-Mar-2015
Mexico introduced the 2nd phase of its Round One oil and gas offerings, stating that it will put 9 shallow-water fields in the Gulf of Mexico up for auction. This second phase, which follows a first phase of Round One launched on Dec. 11, is expected to appeal approximately $4.5 billion in investment over the next 5 years. The fields to be given are situated in a 281-sq.-kilometer (108-sq.-mile) area off the coasts of the southeastern states of Tabasco and Campeche and contain reserves approximate at 671 million barrels of oil equivalent.
Energy Secretary Pedro Joaquin Coldwell said that the fields, which are to be auctioned off in five contracts, will lead to an additional 124,000 barrels per day of production. He said that nearly all of the fields have certified crude reserves and the fact they are in the development phase and do not require prior exploration significantly reduces their geological risk. The secretary added, "These nine fields are very attractive because they are in the southeastern basin (of the Gulf of Mexico), the country's most prolific area”.
The government with this auction expects to increase oil production that has been "severely affected by the decline of the supergiant Cantarell field" and create 2.7 direct jobs per $1 million invested.
He added that this will "give us a total of 12,000 new direct jobs by around 2018," in addition to 32,000 indirect jobs. Coldwell said that the fields included in the second phase remain attractive even in the wake of the recent sharp drop in global oil prices. The first phase of Round One comprised 14 shallow-water exploration blocks in a 4,222-sq.-kilometer (1,630-sq.-mile) area off the coasts of the southeastern states of Veracruz, Tabasco and Campeche.
In that opening phase, 43 companies have expressed interest, 26 have paid for access to the technical data room and 16 have entered the pre-qualification process. The oil-bid round is the product of a 2013 overhaul that opened Mexico's energy sector to private investment for the first time since 1938. The government is seeking to the energy overhaul to draw 10 of billions of dollars in investment and reverse a approximately 30 percent decline in Mexico's oil output, which peaked at 3.38 million barrels per day in 2004 and currently stands at roughly 2.43 million bpd.
