Dallas – Thompson & Knight LLP assisted Fieldwood Energy LLC (“Fieldwood”), together with Petrobal, S.A.P.I. de C.V., in securing a production sharing contract from the National Hydrocarbons Commission (the “CNH”). The contract was awarded on September 30 during Mexico’s second round of bidding since the country’s historic decision to open its oil and gas reserves to private energy exploration.
“We have been an active participant in the Mexican energy industry for decades, and our work for Fieldwood is another example of how we have helped our clients participate in many groundbreaking projects in Mexico’s energy industry,” said Gabriel Ruiz, Thompson & Knight’s Monterrey Office Leader and a Partner in the Firm’s International Energy Practice Group.
On July 15, 2015, the CNH awarded the first production sharing contracts in Mexico’s history as a result of the first of five Round One tenders for 14 exploration blocks located in shallow water areas in the Gulf of Mexico. In the second round of bidding, the CNH awarded three out of five possible production sharing contracts for the development of nine shallow water fields located in the Gulf of Mexico, as part of the Round One tenders planned for 2015. Fieldwood received one of the three awarded.
These results represent another positive step in the implementation of Mexico’s energy reform passed in 2013 as well as another valuable learning experience for the CNH. The next bid round (onshore oil and gas) is currently in the prequalification stage, and the presentation of proposals is scheduled for December 15, 2015. In addition, the CNH has announced that the deepwater bid round will be published this month.
For more information about Mexico Energy Reform, visit https://www.tklaw.com/energy-mexico-practices/.