The Mexican oil and gas regulator National Hydrocarbons Commission (CNH) has announced a new onshore oil and gas auction scheduled to start on 27 September 2018. Up to 37 onshore blocks will be available, along with nine development rights for shale projects located in the Tamaulipas state, near the US border. In addition, seven joint ventures (JVs) with the state-run hydrocarbon company Petróleos Mexicanos (Pemex) will be offered in October 2018.
The 37 areas proposed in the September auction are concentrated in four provinces and include the promising Southeast, Veracruz, Tampico-Misantla and Sabina-Burgos basins. The minimum rate of royalty payments is expected to range between 2.5% and 5% while the maximum rate will stand between 25% and 40%.
In the October auction, interested oil companies or consortia will have to offer an additional royalty payment (6% for the Giraldas-Sunuapa joint venture and 15% for the 6 other JVs). They will also have to offer an initial payment to Pemex representing Pemex's past investments at the sites, ranging from US$5m (Lacamango JV) to US$146m (Juspi-Teotleco).
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