Insight
Mexico's Round Two - onshore phase undermined by gas focus and above-ground risks
Report summary
Mexico has made a risky decision focusing its second onshore licensing round on gas-prone acreage, predominately in the security and infrastructure-challenged Burgos basin. The country is seeking to boost cheap US gas imports while also maintaining energy independence by encouraging companies to focus on the type of gas opportunities that Pemex sees as low priority. We analyze the offshore phase of the second round.
Table of contents
- Bids are due in April
- Qualification criteria more stringent than Round One's onshore phase
- Twelve blocks offering exploratory gas potential and small DROs
-
License continues to be the onshore contract of choice
- US imports will double by 2025, making it hard for domestic gas production to compete
- Security concerns a major risk in the Burgos basin
- Conclusion
Tables and charts
This report includes 7 images and tables including:
- DROs: government-announced reserves figures
- Fiscal regime comparison of onshore terms by additional royalty bid
- Mexico's gas balance to 2025
- Difficult to achieve competitive returns at our forecast Burgos gas price
- Burgos blocks face security problems
- Above-ground risks and US gas imports are key concerns
What's included
This report contains:
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