Energy > AG Speaking Energy
20 Jun '17

On June 19, 2017, the Comisión Nacional de Hidrocarburos (CNH) completed the Presentation and Opening of Bid Proposals for the First Tender of the Ronda Dos (“Round 2.1”), which was first announced on July 20, 2016. Round 2.1 attracted 36 bidders: 20 individual companies and 16 consortia, including Petroleos Mexicanos, DEA Deutsche Erdoel, Talos Energy, Noble Energy, Chevron, Shell, Total and ConocoPhillips.

Round 2.1 included 15 contract areas with an estimated four billion BOE of dry gas, wet gas, light oil, heavy oil and extra heavy oil located in the shallow waters of Veracruz, Tabasco and Campeche.

Click here to read the full alert.

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06 Dec '16

On December 5, 2016, the Comisión Nacional de Hidrocarburos (“CNH”) conducted the Opening and Presentation of Bid Proposals Ceremony for the Ronda Uno, Fourth Tender (“Fourth Tender”). Simultaneously with the Fourth Tender, the CNH conducted the first ever partnership auction for Petróleos Mexicanos (“Pemex”). The unusual circumstance of Pemex being required to conduct a public auction administered by the CNH to select partners for upstream exploration and production came about thanks to the legal scheme introduced in the Mexican Energy Reform in 2014. This partner-selection process has been commonly referred to as a farmout (“Farmout”), even though the structure is really more of a sell down of Pemex interests in a given area. 

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29 Mar '16

(Houston) – Akin Gump is pleased to announce it has released its “2015 Energy Year in Review,” which examines the current state of the global energy market and highlights the energy matters with which the firm was involved last year in the following areas:

  • M&A
  • financial restructuring
  • capital markets
  • lending
  • project development and project finance
  • energy regulation, markets and enforcement
  • energy litigation and international arbitration.

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22 Feb '16

On February 16, 2016, Mexico's Energy Regulatory Commission (CRE) published the general administrative provisions regulating open access to the National Transmission Network (RNT) and the General Distribution Networks (RGD) and provision of related services (the “Provisions”). The Provisions were enacted by the CRE in order to further promote efficient development of the generation, transmission and distribution sectors and the commercialization of electric energy. The Provisions went into effect simultaneously with the start of operations of the Wholesale Electricity Market (WEM), which occurred on January 29, 2016.

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16 Dec '15

On December 15, 2015, the Mexican Comisión Nacional de Hidrocarburos (CNH) completed the third stage of its so–called “Round One” upstream oil and gas auctions. The Third Tender included 25 mature onshore contract areas distributed across four states, Chiapas, Nuevo Leon, Tabasco and Tamaulipas. It is estimated that these contract areas contain an estimated 2.5 billion barrels of oil equivalent (boe) distributed in multiple oil and gas fields. The Mexican government divided the blocks into two types based on size and estimated remaining recoverable hydrocarbons. The blocks were onshore, small-producing and mature areas that were structured to incentivize local companies and smaller companies to participate in the new oil and gas exploration market. As a major shift from the first two tenders, the CNH used a license as the model contract to facilitate the entry of domestic participants and smaller IOCs. Licenses are less complicated, as they do not involve cost recovery or sharing with the state like production-sharing agreements. Also, as it did during the Second Tender, the Mexican government published its minimum requirements ahead of the bid deadline.

Click here to read the full alert.

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28 Aug '15

On August 25, 2015, the Comisión Nacional de Hidrocarburos (CNH) published the final form of the Bidding Guidelines (“Guidelines”) and the Model Production Sharing Contract (PSC) for the Second Tender initially published on February 27, 2015 (“Second Tender”). Currently, 20 companies from around the world, grouped into 14 prequalified Individual and Consortium Bidders, will vie for 5 shallow-water extraction areas located off the Gulf of Mexico coastlines of Veracruz, Tabasco and Campeche.

Click here to read the full alert.

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17 Aug '15

On August 14, 2015, the U.S. Department of Commerce’s, Bureau of Industry and Security (BIS) indicated that it would approve a number of export license applications permitting parties in the United States to swap crude oil with counterparties in Mexico. These decisions could open a new market for U.S. oil producers who are faced with an oversupply of light crude oil and have been previously foreclosed from this export market by the U.S. ban on crude oil exports. To take advantage of this opportunity, U.S. companies will need to structure swap transactions with Mexican companies that satisfy BIS’s criteria for approval. Companies may also want to consider engaging with lawmakers in Congress who are currently contemplating legislation to repeal the export ban on crude oil altogether.

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