18013
Mexico Lifts Bidding Limits for 1st Batch of Oil Tenders
Energy

Mexico Lifts Bidding Limits for 1st Batch of Oil Tenders

Mexico’s oil regulator voted late on Friday to relax rules on bidding terms and contracts that form the first step in a historic sector opening that kicks off this summer with the public auction of 14 shallow water fields, Reuters reported.
The July auction will mark the first of five packages of oil fields up for grabs, part of a so-called Round One tender that follows a major energy reform approved by Congress last year.
The constitutional reform ended the decades-long monopoly enjoyed by state-owned oil company Pemex and aims to reverse a decade-long slide in Mexican crude output.
Responding to complaints from private and foreign companies, the national hydrocarbons commission, or CNH, eliminated caps on how many contracts firms can bid on. It also reversed a rule that would have required them to destroy the geological data they purchase for fields they are not ultimately awarded.
The CNH voted to give the finance ministry more oversight over the long-term development plans and annual work program budgets of each contract. The regulator also signaled an adjustment in the 14 contracts’ fiscal terms by putting greater emphasis on companies’ ability to recover costs during the contract’s exploratory phase.
Under the new rules, companies would be able to claim back a further 25 percent during the exploratory phase, with the chance of recovering up to 125 percent of their costs if they struck upon a commercial discovery. Companies whose profits from the contracts jump above a pre-agreed level would be forced to pay a higher percentage to the government.

 

Short URL : http://goo.gl/mGah7Y

You can also read ...

Russia Says US Sanctions on Iran "Unproductive"
United States' sanctions on Iran's oil industry are...
China to Cut Solar, Wind Subsidies
China will speed up efforts to ensure its wind and solar power...
Oil Coalition Seeks Consensus Ahead of Algiers Summit
With a critical meeting in Algiers fast approaching, a...
Abu Dhabi Planning Biggest Oil  IPO in Decade
Abu Dhabi is pushing ahead with an initial public offering for...
Crude Prises Higher as Supply Concerns Rise
Oil prices rose on Monday as investors worried about the...
New Power Capacity for Sistan-Baluchestan
Operations to build new combined-cycle power plants in...
Abadan  Refinery  Second Phase  on Track
The second development phase of Abadan Oil Refinery in...
ICOFC to Develop  Eight Gas Fields
Iranian Central Oil Fields Company plans to develop eight gas...

Trending

Googleplus