The CNH (Comision Nacional de Hidrocarburos), Mexico’s oil industry regulator, on Wednesday set out more detailed terms governing the first joint venture between state firm Pemex and potential private-sector partners in the deep water Trion field in the Gulf of Mexico, according to Reuters.
Under the terms Pemex, which for 75 years enjoyed a virtual monopoly position in the country’s oil production, must retain at least a 45% stake in the new JV.
Multinational super majors are expected to be among the suitors but the final say on who the partners shall be will belong to CNH rather than Pemex.
In 2013 Mexico began moving towards diluting Pemex’s dominant position as part of an energy reform package intended to maximize production from the country’s underperforming resource extraction industry.
Asset sell-offs have been only mildly successful so far as earlier oilfield auctions received lukewarm bids.
But more is expected of the December auction for fields including Trion in the Perdido Fold Belt.
Bidders must meet pre-qualifying requirements (financial and technical) by September 15, with the final version of contract and bid terms being published on September 30.
The JV contract will be awarded on December 5.