Client Alert: Energy Reform in Mexico: Round Two – Shallow Water Bid Round

On July 20, 2016, Mexico’s National Hydrocarbons Commission (the “CNH”) published bid guidelines (the “Guidelines”) pursuant to which 15 shallow water oil exploration and production blocks will be tendered in 2017. This tender is the first of at least five Round Two tenders contemplated in the five-year plan to open exploration and production of hydrocarbons in Mexico promulgated by Mexico’s Ministry of Energy. The Round Two tender offers light crude and natural gas areas located in the Tampico-Misantla, Veracruz, and Cuenca del Sureste basins in the Gulf of Mexico. This Client Alert provides a brief summary of the key terms in the Guidelines and offers commentary regarding its significance in the overall context of Mexico’s growing oil and gas industry.