UPDATE 2-Mexico sees $620 mln investment from 26 oil areas under tender

martes 12 de mayo de 2015 17:42 GYT
 

(Adds details on license contracts)

By David Alire Garcia and Adriana Barrera

MEXICO CITY May 12 (Reuters) - The next round of contracts in Mexico's opening of its oil and natural gas industry should bring in about $620 million in investment in the first five years, Energy Minister Pedro Joaquin Coldwell said on Tuesday.

The 26 onshore oil and gas areas to be tendered are spread across five states and are believed to contain 2.5 billion barrels of oil equivalent in remaining resources.

Edgar Rangel, a member of the National Hydrocarbons Commission oil and gas regulator, said the 26 areas would have average production costs of between $10 and $20 per barrel, below previously announced shallow water contracts.

The 26 areas are the third installment of the so-called Round One tender, which features packages of blocks grouped by type of petroleum basin and heralds the opening of Mexico's oil industry after an energy reform finalized last year.

The reform ended the decades-long monopoly enjoyed by state-run oil company Pemex.

To compete for the onshore contracts, companies must document financial capacity of between $5 million and $200 million, depending on the size of the area, as well as the operational experience of their personnel.

All but eight of the areas are already producing oil or gas, thanks to past exploration and extraction by Pemex.   Continuación...