March 27, 2018 / 4:39 PM / 5 months ago

Factbox: Mexico's shallow water auction brings new chances to challenge Pemex

MEXICO CITY (Reuters) - Mexico’s auction on Tuesday of 35 shallow-water oil and gas blocks will bring new opportunities for foreign producers to compete in basins largely dominated by state-run Pemex.

FILE PHOTO: The Pemex logo is pictured during the 80th anniversary of the expropriation of Mexico's oil industry in Mexico City, Mexico March 16, 2018. REUTERS/Edgard Garrido/File Photo

Energy giants including Italy’s Eni, Malaysia’s Petronas, Spain’s Repsol, France’s Total and Russia’s Lukoil took advantage of early rounds in 2015 and 2016 to secure acreage in Mexico’s coveted shallow waters.

Those earlier auctions led to surprising results that have increased the appeal of this Gulf’s areas. U.S.-based Talos Energy along with partners Premier Oil and Sierra Oil & Gas, and Eni were among the companies that disclosed “historic” discoveries after winning their blocks, or re-classified reserves to add more barrels.

The Zama-1 well, drilled by a Talos-led consortium, allowed the group to confirm gross oil in place of between 1.4 billion and 2 billion barrels, far exceeding original estimates.

New operators and consortia will try again to challenge Pemex’s expertise in Mexico’s Gulf coast waters.

The following is a breakdown of firms currently investing in the area and those qualified to bid in the March 27 round.

ROUND 1.1

14 offered areas, 2 awarded in 2015

- Southeast Basins, blocks 2 and 7: Awarded to Talos Energy, Sierra Oil & Gas and Premier Oil with 40 percent of profits as the main bid variable.

ROUND 1.2

5 offered clusters, 3 awarded in 2015

- Southeast Basins, area 1 (fields Amoca, Mitzon and Tecoalli): Awarded to Eni with 83.75 percent of profits as the main bid variable.

- Southeast Basins, area 2 (field Hokchi): Awarded to BP-backed Pan American Energy and E&P Hidrocarburos y Servicios with 70 percent of profits as the main bid variable.

- Southeast Basins, area 4 (fields Ichalkil and Pokoch): Awarded to Fieldwood Energy and Petrobal with 74 percent of profits as the main bid variable.

ROUND 2.1

15 offered blocks, 10 awarded in 2017

- Tampico-Misantla, block 2: Awarded to DEA Deutsche Erodel and Pemex with 57.92 percent of profits as the main bid variable.

- Southeast Basins, block 6: Awarded to Petronas and Colombia’s Ecopetrol with 65.19 percent of profits as the main bid variable.

- Southeast Basins, block 7: Awarded to Eni, Capricorn Energy and Citla Energy with 75 percent of profits as the main bid variable.

- Southeast Basins, block 8: Awarded to Pemex and Ecopetrol with 20.1 percent of profits as the main bid variable.

- Southeast Basins, block 9: Awarded to Capricorn and Citla with 75 percent of profits as the main bid variable plus a cash payment of $30 million.

- Southeast Basins, block 10: Awarded to Eni with 75 percent of profits as the main bid variable.

- Southeast Basins, block 11: Awarded to Repsol and Sierra Perote with 62.28 percent of profits as the main bid variable.

- Southeast Basins, block 12: Awarded to Lukoil with 75 percent of profits as the main bid variable.

- Southeast Basins, block 14: Awarded to ENI and Citla Energy with 37.27 percent of profits as the main bid variable.

- Southeast Basins, block 15: Awarded to Total and Royal Dutch Shell with 30.11 percent of profits as the main bid variable.

ROUND 3.1

- 35 areas offered in the Burgos, Tampico-Misantla-Veracruz and Southeast basins.

- 14 companies including BP, Chevron, Eni, India’s ONGC Videsh, Pemex, Petronas, Repsol, Shell and Total qualified to bid as individual bidders.

- 22 consortia also have qualified to bid.

Reporting by Marianna Parraga and David Alire; Editing by Bill Trott

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