Mexico's Round One onshore results: the creation of a private E&P sector

Report summary

The Geo Stratos-Geo Stratos MXoil consortium was the biggest winner with four blocks awarded, followed by Strata Campos Maduros, and Renaissance Oil with three blocks each. Diavaz Offshore, Perseus, Consorcio Manufacturero Mexicano and Grupo Diarqco won two blocks each. While the award of all 25 areas is a good outcome for Mexico as the country competes for investments in a challenging oil price environment, the high additional royalty bids call into question the long term sustainability of many of these contracts. Fifteen of the 25 areas went to companies bidding over 50% additional royalty. On 15 December 2015, the third phase of Mexico's Round One concluded with the award of all areas on offer. Forty out of the 51 qualified companies submitted bids for one or more of the 25 areas. The results far exceeded the modest 20% goal by the government.