The Mexican oil and gas regulator National Hydrocarbons Commission (CNH) will postpone the oil auctions set for the end of 2018 (respectively September and October) until the beginning of 2019. Initially scheduled to start in September-October 2018, it will be delayed because a break was requested by the new government to check for corruption in oil and gas contracts currently issued to private and foreign companies.
This decision will also aim at attracting more bidders next year. Up to 45 onshore (both conventional and shale) blocks were initially planned for September 2018, along with nine development rights for shale projects located in the Tamaulipas state, near the US border. The areas 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 addition, seven joint ventures (JVs) with the state-run hydrocarbon company Petróleos Mexicanos (Pemex) were planned for October 2018 and will also be postponed to 2019.
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