LONDON (Alliance News) - MX Oil PLC Friday said the third phase of Mexico's oil and gas licensing round will be based on experience in the country and the ability to work with the state-owned oil company rather than technical and financial criteria.
MX Oil is focused on re-opening the Mexican energy sector and is currently participating in the country's tender for conventional and mature fields. The licensing round is seen as significant after 76 years of state monopoly as foreign companies move in to own oil fields.
In the third phase of Bid Round One, the pre-qualification criteria to participate in the licensing round will focus on "companies that can demonstrate extensive experience in either working with PEMEX, the state-owned oil company, or a proven track record of developing onshore fields," adding that those companies meeting the criteria being "prioritised", MX Oil said in a statement.
It said the criteria in the previous two phases have been focused on technical and financial capabilities.
"With over 17 years of experience in working with Pemex and other operators on onshore fields in Mexico, our local partner, Geo Estratos, ticks all the boxes and more," said Chief Executive Stefan Olivier.
The third tender is focused on 20 to 40 onshore fields in the oil strip around the Mexican south-east, a number of which have already been discovered and will be put out for tender for development. In addition mature fields will be included which require the application of secondary recovery methods to enhance recovery rates from the basin.
"MX Oil is primarily focused on securing onshore conventional acreage in Mexico which remain attractive at current oil prices due to having low production costs. As well as participating in Bid Round 1, the company is also working alongside its partner Geo Estratos, a leading local oil and gas services provider, to secure existing fields operated by Pemex, the state-owned national oil company, via farm-out agreements," said MX in a statement.
MX shares were up 0.6% to 4.00 pence per share on Friday afternoon.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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