Round 3, Tender 1 of the National Commission of Hydrocarbons - CNH (CNH-R03-L01/2017) has 35 contract areas located within the oil provinces: Burgos, Tampico-Misantla-Veracruz, Southeastern Basins in shallow waters of the Gulf of Mexico for exploration and extraction of hydrocarbons.

These contractual areas are assigned through shared production contracts. These contracts can generate income or not depending on whether the operator finds commercially resources in the assigned area.

In case the operator finds and extracts hydrocarbons, he must pay to the Mexican Government the percentage of production that he offered in the tender, once costs are recovered.

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

The contracts will have a term of 30 years from its signature date and there will be two possible extensions in the term of the contracts subject to the area being in regular commercial production, the first extension of 5 years and a second extension by other 5 years.

Contractual areas 1, 2, 3, 4, 6, 7, 8, 9, 10, 14, 19, 20, 21, 22, 23, 24, 25, 26, 27 were declared void.