Mexico and Brazil deep water licensing rounds: value versus volume
Four major Latin America deepwater exploration rounds are expected in the last quarter of 2017: Mexico's Round 2.4, Brazil's PSC Rounds 2 and 3, and Brazil's Concession Round 14. Opportunities are being strictly high graded as companies focus on reducing break-evens and both governments are keenly aware that terms need to be competitive in this environment of scarce exploration capital. Poised to be two of the biggest rounds this year, Mexico's Round 2.4 and Brazil's PSC Round 3 offer some of the most attractive acreage available. In this Insight we consider how these offerings stack up in terms of prospectivity, fiscal regime, and above-ground risk.
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Prospectivity: Brazil's proven materiality and strong well rates outplay Mexico's under-explored deepwater