Mexico to reveal key terms for oil contracts on day of tenders
MEXICO CITY, June 9 (Reuters) - The minimum percentage of profits that companies must bid in order to win oil contracts in 14 Mexican shallow water blocks to be auctioned this summer will only be revealed on the day the tenders are awarded, the Finance Ministry said on Tuesday.
The percentages have been set for each block, but they will be kept secret until unveiled by the National Hydrocarbons Commission (CNH), the regulator that will award the contracts on July 15, the ministry said in a statement.
It had previously said the minimum values would be made public some weeks before the day of the auction.
The CNH will award contracts based on which companies offer the biggest share of profits to the government via a weighted formula that also includes an investment commitment.
The 14 shallow water blocks located along the southern rim of the Gulf of Mexico mark the first package of contracts up for grabs in Mexico's so-called Round One tender.
The tender features packages of blocks grouped by type of petroleum basin and heralds the opening of the oil industry after a sweeping reform finalised last year.
The reform ended the decades-long monopoly on oil production enjoyed by state oil company Pemex.
(Reporting by David Alire Garcia; Editing by Alan Raybould)
© Thomson Reuters 2017 All rights reserved.