Project

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

Sector: Hydrocarbons


Last Revision

January 02, 2025
Short Name of the Project:
0493 Round 1, Tender 4: Area 4, Saline Basin
Type of Investment:
Greenfield
Subsector:
Upstream
Asset (s):
 Oil Field 2,359 Km2-Light oil 
Contract Currency:
US Dollars
Estimated Investment MXN:

4,773,113,146

Estimated Investment USD:

258,006,116

Exchange rate (USD/MXN) used by the Ministry of Finance for the economic plan 2025: $ 18.5
Contract Scope:
  Exploration,  Extraction

DESCRIPTION

License agreement for the exploration of hydrocarbons in deep waters of the Gulf of Mexico, in a 2,359 km2 block for oil extraction.

Main Features:
- Geological province: Saline Isthmus.
- Age (s) of play: Neogene, Paleogene and Cretaceous fractured
- Lithology (s): Fractured limestone, medium grain sand and fine grain sand
- Types of Hydrocarbons: Heavy oil, light oil and wet gas
- Prospective Resources: P90: 82.5 million barrels of oil equivalent (mmboe), P50: 262.4 mmboe and P10: 895.3 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
4,773,113,146
USD
258,006,116
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
PC Carigali Mexico Operations y Sierra Coronado E&P  
Major Contractor’s Shareholders
PC Carigali Mexico Oil & Gas Holding, Petronas Carigali International E&P, Coronado Energía, Sierra Offshore Exploration, DEA Nederland

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

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 estimated investment amount refers to approved investments, which are those that operators estimate they will carry out in the various plans, as applicable (exploration, evaluation, and/or development).

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.

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