Insight
Mexico's Round One - competitive minimums set for shallow-water development phase
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Report summary
On 14 September, Mexico's Finance Ministry announced the minimum acceptable bids for the shallow-water development opportunities phase in Round One. The announcement comes two weeks ahead of the phase's closing on 30 September 2015. We consider the minimum acceptable bids to be internationally competitive and believe that around two-thirds of the qualified companies could place bids. We believe this will result in at least three of the five available areas being awarded.
Table of contents
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The announced minimum is competitive
- Fiscal benchmarking using government take (0% discount rate, real)
- Effect of government profit share bid on company IRR
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Companies with deep pockets and a long-term Mexico strategy will bid aggressively
- Consortia will be the most aggressive peer group due to lack of oil price exposure
- Majors could be participating for the learning experience
- Asian NOCs are looking for long-term resource access
- Other international players consider Mexico an attractive opportunity to enhance their portfolios
- Mexico is applying lessons learned and moving in the right direction
Tables and charts
This report includes 5 images and tables including:
- Minimum acceptable government profit share bids per area
- List of qualified companies
- Mexico's Round One - competitive minimums set for shallow-water development phase: Image 2
- Mexico's Round One - competitive minimums set for shallow-water development phase: Image 3
- Company IRR sensitivities to changes in cost, production, and oil prices
What's included
This report contains:
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