Mexico’s Deepwater Round 2.4 Receives Significant Bids

Today, Mexico's National Hydrocarbons Commission (CNH), awarded 19 blocks of the 29 offered in Deepwater Round 2.4. Wood Mackenzie considers this a significant success.

Maria Cortez, Latin America Upstream Research Manager for Wood Mackenzie commented: “Bidding was competitive, with Shell the most aggressive bidder, taking nearly half of all blocks awarded. In the Perdido Area, the Company won five of six awarded blocks. Today’s result marks a strong win for Mexico and the ongoing Energy Reform."

The round comes at the same time as several other Deepwater rounds worldwide. As we expected, acreage in the Perdido and Salinas Sureste areas proved to be the most sought after in Round 2.4.

 Ms Cortez added: "The Majors used this round to increase acreage exposure to some of the most attractive Deepwater areas in the world. Their interest today is a vote of confidence in Mexico and a testament to the country’s prospective acreage and competitive fiscal environment.”

Today’s result validates the Mexican government’s approach to setting competitive fiscal terms, which promoted active bidding, and drove up the value of acreage. The strategy paid off, with Mexico raising more than $500 million in cash payments.

Ms. Cortez continued: "Mexico has not only opened its doors to foreign direct investment, but has also made a point of listening to industry and learning from each round. One measure of success is the number and quality of companies now active in Mexico’s offshore. The corporate landscape is very diverse."