Mexican National Hydrocarbons Commission Issues First Call For Round One Bids

On December 11, 2014, the National Hydrocarbons Commission of Mexico (Comisión Nacional de Hidrocarburos) ("CNH") announced in the Federal Register (Diario Oficial de la Federación) the first call for bids to participate in the Round One auction of oil and gas properties in Mexico ("Call to Bid"). Round One will feature 14 shallow water blocks. Interested domestic and international parties (including Mexican state production companies such as Pemex) may submit bids for multiple blocks, and each successful bidder will enter into a production sharing contract for its block. As part of the Call to Bid, the CNH also published the model production sharing contract.

To participate in Round One, an interested bidder must pay (i) Mex$5.3 million (approximately US$359,300 to access the Data Room and (ii) Mex$280,000 (approximately US$19,500) to prequalify and to be eligible to submit bids.