April 6, 2017

Mexico Hydrocarbons Commission Calls Tender for Second Pemex Farmout

Eight More Onshore and Offshore Farmouts Set for 2017 and 2018
Holland & Knight Alert
Carlos Ochoa

Mexico's 2013 Energy Constitutional Reform opened exploration and production (E&P) of the oil and gas sectors to private investment and contracting. Previously, Petróleos Mexicanos (Pemex) was the state company in charge of these activities and contracted private companies through multiple services contracts or equipment supply agreements.

Under the reform, Pemex acquired flexibility for doing business. Pemex kept some of its E&P contracts through Round 0 (assignments), and placed the rest for tender in Rounds 1 and 2. Some of its assignments are migrating to E&P contracts with private parties (farmouts). These farmouts are granted through tenders called by Mexico's Hydrocarbons National Commission (CNH).

Pemex signed the first farmout on March 3, 2017, with BHP Billiton, an Anglo-Australian company, for the Trion oil field.

On March 7, CNH called for the second farmout for the Ayin-Batsil oil fields (associated to Ayín, Alux, Makech, Batsil and Hap). The 680-square-mile, shallow-water area is located at the Cuencas del Sureste, and has 10 explored wells and two in development. The main hydrocarbon is heavy oil (dry gas, heavy oil and medium oil). The 3P reserves include 217.6 millions of barrels of crude oil equivalent (mmbpce) for Ayin and 79.6 mmbpce for Batsil.

Access to the data room is available by paying and registering. For the purpose of participating in this tender, it is important to act before the following 2017 deadlines.

  • April 10: Payment due for accessing the data room
  • April 12: Registration and date for pre-qualification
  • June 16: Access to the data room
  • March 7 to May 31: First and second Q&A sessions
  • June 19: Presentation of proposals
  • June 21: Award

Pemex has announced five more farmouts during 2017 as well as three for 2018, onshore and offshore. These tenders are excellent opportunities for companies to become involved in the business being generated by the Mexican energy reform, whether from participating in the tenders or developing business by finding partners and clients in the oil and gas market.

Holland & Knight's energy law attorneys have extensive experience on a variety of projects in the oil and gas industry. For more information, contact Holland & Knight's Mexico City office.


Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem. Moreover, the laws of each jurisdiction are different and are constantly changing. If you have specific questions regarding a particular fact situation, we urge you to consult competent legal counsel.

Related Insights