On March 07, 2017, the National Hydrocarbons Commission ("CNH") released the call related to the second PEMEX farm out, CNH-A2-AYIN-BATSIL/2017, for the wells known as "Ayin-Batsil" which are located in shallow waters of the Mexican Gulf.

Below are the main aspects to be considered in this farm out procedure:

I. Bidding guidelines / Required Experience:

  • Three exploration and/or extraction of hydrocarbons projects in shallow waters with depth equal or greater to 150 meters during 2011 – 2015.
  • Daily hydrocarbons production of 10,000 barrels of crude equivalent oil in shallow water projects with depth equal or greater to 150 meters during 2011 – 2015.
  • Investments in projects related to the exploration and/or extraction of hydrocarbons of at least 2,000 billion USD during 2011 – 2015.
  • Experience in environmental matters and industrial safety.
  • It is important to mention that the awarded bidder must make a carry-over of costs in favor of PEMEX of at least the minimum contribution of USD $250,000,000.00 (two hundred and fifty million dollars). PEMEX will be exempted to make any type of contribution until awarded bidder reaches the referred USD $250,000,000.00.
  • For the referred PEMEX farm out the participation scheme proposed for joint bidders is:

    • PEMEX: 50%
    • Operator: Minimum of 30%
    • The remaining 20% may be agreed between the members of the consortium.
  • For the referred PEMEX farm out the participation scheme proposed for individual bidders is:

    • PEMEX: 50%
    • Operator: 50%
  • Participating companies must obtain a license to use information that will be issued by CNH for an amount equal to or greater than Mx. Pesos$2,500,000.00.

II. Bidding schedule

Final bidding calendar May 31, 2017
Period to request access to virtual data room and make the corresponding payment March 07, 2017 – April 10, 2017
Access to virtual data room March 07, 2017 – June 16, 2017
First clarification stage March 07, 2017 – April 03, 2017
Second clarification stage March 07, 2017 – April 12, 2017
Inscription payment and prequalification appointment April 12, 2017
Reception of prequalification documents April 17, 2017 – April 19, 2017
Review of prequalification documents April 20, 2017 – May 24, 2017
Prequalified companies' publication May 26, 2017
Period to request CNH authorization to conform bidders May 29, 2017 – May 31, 2017
Filing of proposals June 19, 2017

III. Bidding block

Pursuant to the information released by CNH, the area known as Ayin-Batsil has an approximate of 3P reserves of 300 million barrels of crude equivalent oil in a total surface area of 1,096 km2 and depths of 82 meters (Batsil) and 176 meters (Ayin).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.