Mexico Awarded 19 Out Of 29 Deep-Water Blocks On Offer In Competitive Acreage Offering - Energy and Natural Resources - Mexico Law Articles in English - Mondaq Business Briefing - Books and Journals - VLEX 702267101

Mexico Awarded 19 Out Of 29 Deep-Water Blocks On Offer In Competitive Acreage Offering

Author:Rodríguez Dávalos Abogados
Profession:Rodríguez Dávalos Abogados
 
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Mexico awarded 10.7 million prospective acres (43,289 km2) in deep-water, 42% (9 blocks) will be operated by Royal Dutch Shell. Nevertheless, participation in Round 2.4 was significantly more competitive than Round 1.4.

This is the second tender in which Mexico offers deep water blocks. This time Mexico used three parameter criteria to award acreage. Additional government share (in the form of royalties over the mandated level by law), investment commitment and, in the case of a tie, a signature bonus would break the tie. There were 9 bids offering signature bonuses for a total of US$ 525 million.

The average winning Additional Royalty bid in Round 1.4 was 14.30% and in Round 2.4 the average winning Additional Royalty bid was 16.12%. In both Mexican deep-water bid rounds CNH received 1.3 bids per block offered while in the US...

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