<article><p>Mexico has signed its first production-sharing contracts for acreage opened to private-sector investment by a profound energy reform enacted just over a year ago.</p><p>A consortium led by Houston-based Talos with Mexico's Sierra Oil and Gas and the UK´s Premier Oil signed the contracts for two shallow-water exploration blocks on 4 September. </p><p>The consortium won the only two blocks awarded in Mexico´s inaugural upstream tender that covered 14 shallow-water exploration blocks in the Gulf of Mexico. The tender was awarded on 15 July. </p><p>The 30-year production-sharing contracts include an initial exploration phase of four years, which can be extended for another two years if the consortium complies with its minimum work commitment.</p><p>Provided commercial success, the government will collect a minimum 74pc of the profit share on the Block 2 and 83pc for the Block 7. The consortium committed to invest 10pc more than the minimum required work commitment on each block.</p><p>Overall, Mexico´s energy ministry said it expected the firms to invest an average of around $1.35bn per block.</p><p>A second tender covering the auction of nine shallow-water development blocks, divided into five production-sharing contracts, will be awarded on 30 September. Oil regulator CNH has pre-qualified 20 firms to participate, either individually or in consortiums. </p><p>A third auction for 25 onshore, mostly mature blocks will take place on 15 December. The third tender has generated a brisk turnout. As of 31 August, 95 firms had shown interest, 80 of which have been given access to geological data. </p><p>The presentation of a much-awaited deepwater tender has been postponed to an unspecified date because of the fall in global oil prices since mid-2014, which has pushed the Mexican government to revise the bidding requirements and contract terms. </p><p>dj/pg</p><p><br> Send comments to <a href="mailto:feedback@argusmedia.com" target="_parent"> feedback@argusmedia.com </a></p><p><u><a href="http://www.argusmedia.com/Info/General/News" target="_TOP"> Request more information </a></u> about Argus' energy and commodity news, data and analysis services. </p><p><i> Copyright © 2015 Argus Media Ltd - <a href="http://www.argusmedia.com/" target="_TOP"> www.argusmedia.com </a> - All rights reserved. </i></p></article>
