UPDATE 3-Mexico OKs 5 shallow water areas in Round One oil tender second leg

viernes 27 de febrero de 2015 21:44 GYT

(Adds details on contracts, dates, well and pre-qualification requirements)

By Adriana Barrera

MEXICO CITY Feb 27 (Reuters) - Mexico has approved draft auction terms for five shallow water areas containing around 355 million barrels of oil equivalent (boe) as part of its Round One tender opening up oil fields to foreign investors, the country's energy regulator said on Friday.

The areas, located in the southern Gulf of Mexico, are divided into nine production-sharing contracts which will be awarded to companies or consortia by late September.

The final bidding terms and contracts for the areas already in various stages of development will be published by the end of May, a couple of weeks earlier that had been envisioned, said Juan Carlos Zepeda, head of Mexico's national hydrocarbons commission.

Mexico's historic Round One tender includes dozens of fields grouped by basin, with the first batch of 14 contracts approved in mid-December.

The newly approved second tranche covers about 108 square miles (280 sq km) and have similar terms and conditions as the first batch, including tax and royalty payments and gradually increasing national content requirements.

Winners of the draft contracts must drill at least nine wells during the first two years of the 25-year contracts, which can be extended by two additional 5-year periods.

To pre-qualify for the contracts, operating companies must have a decade or more of offshore experience in at least three exploration and production projects that total at least $1 billion in capital investment.   Continuación...