Mexico’s Energy Reform: The Migration, the Farm-Out and the Round 1
After Mexico’s Energy Reform was signed into law in December 2013, Mexican National Oil Company (NOC) Pemex formally requested to the Mexican State, which of its E&P assets the company would like to keep under its operation. This request was called Round Zero, where the areas not requested or awarded to Pemex would be relinquished to State control. The outcome of Round Zero indicated which assets were to be awarded to Pemex and migrated into a new type of contract as well as which assets were to be farmed-out by the NOC. In addition to Round Zero’s announcement, the Mexican Government also confirmed the schedule for its first bidding round were areas no longer under Pemex ownership will be offered directly by the State.
This report provides a detailed update on these latest events explaining the results of Round Zero, information about Pemex’s assets with new contracts and the assets that the State is seeking to farm-out. It also provides insight on the areas that will be offered in the first bidding round in 2015. Additionally, the report explains the main type of contracts including the new fiscal terms.
Report provides information and insight on - - Mexico’s Energy Reform schedule for Pemex farm-outs and first international bidding round (Round 1) - Types of new contracts to be used: service contracts, profit-sharing contracts, production-sharing contract and licenses - Main levies payable under the new contracts: exploration fees, hydrocarbon activity tax, landowner compensation fees, royalty rates and corporate income tax - Geographical location of areas offered in Round 1 - Insight on the short term to long term evolution of the E&P sector in Mexico
Reasons to buy
The report will clarify - - The new type of contracts available for E&P of hydrocarbons in Mexico - The hydrocarbon areas that will now have private participation under new contracts - The tax rates payable under the new contracts - The institutional role of the Mexican Government and the associated regulatory agencies - The schedule for pending announcements related to the new contracts
Table Of Contents
Mexicoâs Energy Reform: The Migration, the Farm-Out and the Round 1 1 Table of Contents Round Zero, Round 0.5 and Round 1 New Contracts for New Projects Challenges Ahead and the Abundance Scenario
1.1 List of Tables
Table 1: First Pemex Assets for Migration into New Contracts Table 2: Pemex Assets for Farm-Out Agreements Table 3: Round 1 - AreasTable 4: Contracts for Private Investors - Summary of Terms