Project

EXPLORATION AND EXTRACTION OF HYDROCARBONS IN DEEP WATERS OF THE GULF OF MEXICO, ROUND 1, TENDER 4, AREA 1 ( SALINA BASIN).

Sector: Hydrocarbons


Last Revision

January 08, 2024
Short Name of the Project:
0491 Round 1, Tender 4: Area 1, Saline Basin
Type of Investment:
Greenfield
Subsector:
Upstream
Asset (s):
 Oil Field 2,381 Km2-Light oil 
Contract Currency:
US Dollars
Estimated Investment MXN:

3,409,771,814

Estimated Investment USD:

199,401,860

Exchange rate (USD/MXN) used by the Ministry of Finance for the economic plan 2024: $ 17.1
Contract Scope:
  Exploration,  Extraction

DESCRIPTION

License agreement for the exploration of hydrocarbons in deep waters of the Gulf of Mexico, in a 2,381 km2 block for light oil extraction.

Main Features:
- Geological province: “Salina de Istmo”
- Age (s) of play: Mesozoic and Neogene.
- Lithology (s): Fractured limestone, Middle grain sand and Oolitic Packstone / Grainstone.
- Type of Hydrocarbons: Superlight and ight Oil
- Prospective Resources: P90: 328.5 million barrels of oil equivalent (mmboe), P50: 1,214.2 mmboe and P10: 4,290.1 mmboe

LEGAL AND FINANCIAL STRUCTURE

Type of Project
  Public / Private
Type of Contract
  License
Term
35 years
Selection Process
International Open Tender
Financing Sources
Private
100 %
MXN
3,409,771,814
USD
199,401,860
Payment Source
Project revenues
Revenues will come from the commercialization of hydrocarbons.

STATUS

Stage
  Execution
RELEVANT DATES
Request for proposals/Announcement August 24, 2016
Proposals Reception December 05, 2016
Ruling December 07, 2016
Contract Signing March 10, 2017
Execution/Construction Starting Date March 10, 2017
Term of the Contract March 10, 2052
Contractor
BP Exploration Mexico, Equinor Upstream México y Total E&P México  

GEOLOCATION

State(s)
Deep waters of the Gulf of Mexico   

Entity in charge of controlling the possession of communal land, as well as providing documentary legal security derived from the application of the Agrarian Law, and is the operator of the Geospatial Information System (SIG).

SPONSOR

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Entity
Comisión Nacional de Hidrocarburos
Department
Dirección General de Contratación para la Exploración y Extracción
E-mail
contacto@cnh.gob.mx

SUSTAINABLE INFORMATION

PROJECT’S SUSTAINABILITY SUMMARY

The project aims to drill offshore exploration of oil wells in the Salina Basin to confirm the presence of a hydrocarbon oilfields and its commercial viability. Includes climate resilience technology and to minimize negative impacts of pollution on the environment.

* This summary was prepared based on the methodological framework defined by the Inter-American Development Bank (IDB) in the document entitled: “Attributes and Framework for Sustainable Infrastructure”, which is You can check Here.

Additionally, a brief explanation of the methodology and a summary of the questions applied can be consulted in this Document.

ADDITIONAL INFORMATION

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Source
National Hydrocarbons Information Center
Description
It is in charge of promoting and sharing the knowledge of the subsoil to foment the activities of exploration and extraction of hydrocarbons.
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Source
Comisión Nacional de Hidrocarburos
Description
Regulatory entity with technical autonomy, responsible for the organization of tenders, and execution of contracts related to the exploration and extraction of hydrocarbons.
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Source
Secretaría de Energía
Description
Federal Government entity responsible for controlling, managing and regulating Mexico’s energy resources, and establishing the national energy policy.

REMARKS

The license agreement for the extraction of hydrocarbons stipulates that the contractor will provide and be responsible for all technical and financial resources required for the execution of the operations and will have the right of ownership over the hydrocarbons extracted in the contractual area. The Contractor will pay a royalty, based on audited Hydrocarbons.

The State is a partner of the contractor. The contributions for the State are:
1. Consideration based on gross income before deducting costs.
2. Adjustment mechanism based on production volume and prices.

It is important to clarify that all the exploration risk is assumed by the operator, that is, if the assigned operator does not find economically viable hydrocarbons to be extracted, the Mexican State has no payment obligation.

There are two possible extensions in the contract term subject to the area being in regular commercial production, the first extension of 10 years and a second extension for an additional period of 5 years.

Prospective Resources: The volume of hydrocarbons estimated at a certain date, of accumulations that are not yet discovered but have been inferred and are estimated to be potentially recoverable, through the application of future development projects.

They have both an opportunity for discovery and development, and are further subdivided according to the level of certainty associated with recovery estimates:
- P90: Low quantity estimates, that with 90% probability will be equal to or greater than that level.
- P50: Best quantity estimates, that with 50% probability will be equal to or greater to that level.
- P10: High quantity estimates, that with 10% probability will be equal to or greater than that level.

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