I. CNH-A6-7-Asociaciones/2018 

a) Tender Guidelines

  •  Regarding the allocation mechanism, SHCP determined fix values to the Additional Royalty:
Contractual AreaUnique Value of the Additional Royalty
Cinco Presidentes
Giraldas Sunuapa6%

  •  Allocation variable – amount offered in cash by the Bidders –  will be divided as follows: (i) 20% for the State to be paid along with the execution of the Contract, and (ii) 80% for PEP, to be paid along with the following Initial Payments:

Contractual Area Initial Payment*
(USD Millions)
Artesa 86
Bacal-Nelash 66
Bedel-Gasífero 128
Cinco Presidentes 120
Juspí-Teotleco 36
Lacamango 146
Giraldas Sunuapa 5

Any draw will be defined through a toss. 

b) E&E Contract

  • Preexisting Damages. The Contract determined that the definition of such damages will be in terms of the applicable legal framework.
  • Provisional Program. Once the Development Plan and the Exploration Plan be approved, the Provisional Program will be replaced.
  • Unitization. The clause was eliminated and only specifies that in the event of inferring a shared reservoir, Contractors must follow the procedure provided by the Guidelines.
  • Annex 3. The values of the additional royalty were added.

c) JOA

  • The Development Plan definition was aligned with the definition stipulated by the E&E Contract.
  • To align the E&E Contract with the JOA, the latter provides that during the Start-up Transition Stage the Operator shall carry out the activities included in the Provisional Plan.
  • The abandonment and remediation are not an independent Program anymore, now is a section of the Work and the Budget Program.
  • To guarantee the operational continuity, Operators must hire PEP personnel for additional services.
  • The following annexes were added: Property Transfer Agreement; Guidelines for the Integral Equipment of Projects; Secondee Agreement; Power of Attorney for Lawsuits and Collections, and Terms and Conditions for the Temporal Disposition of Oil and Gas.


Tender Guidelines

  • CNH confirmed that the Contractual Area Moloacán remains in this Tender Bid since the early termination procedure of the Contract CNH-R01-L03-A14/2015  was concluded.
  • SHCP determined the following minimum and maximum values for the Additional Royalties:
SectorMinimum Value of the Additional RoyaltyMaximum Value of the Additional Royalty
Sabinas-Burgos2.50 %25%
2.50 %25%
Southeast Basin
(Except TC-CSC-G1)
2.50 %25%

Sources: 36th Extraordinary Session of CNH.  

Muvoil Consulting is a group of specialists in the O&G sector: legal, fiscal, social and environmental. Our multidisciplinary approach allows us to design strategic solutions that can disentangle the most complex regulatory and transactional challenges that a petroleum project can face.

Layla Vargas
General Director