Summary Of Production-Sharing Contract Terms For Shallow Water Areas

Keywords: shallow water areas, Mexican National Hydrocarbons Commission, CNH

The Mexican National Hydrocarbons Commission (CNH) has published the model production-sharing contract for the first phase of Mexico's Round One bid process relating to 14 contract areas in shallow waters. CNH published one contract form for individual Contractors and one form for consortiums. For a summary on the bidding terms applicable to these contract areas, see our recent legal update, "Mexico's E&P Round One Kicks Off: Bidding Terms for Shallow Water Areas Released". The main terms of the production-sharing contract model are outlined below.

Purpose

• Contractor may perform exploration and production operations in the contract area;