LONDON (Alliance News) - MX Oil PLC Thursday said it is confident it will pre-qualify for Mexico's oil and gas licensing round and said details of the tender and contract models for the extraction of hydrocarbons under the third phase will be announced on May 12.
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 are allowed 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," MX Oil said in a statement, adding that those companies meeting the criteria will be "prioritised".
It said the criteria in the previous two phases have been focused on technical and financial capabilities.
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.
"We are confident that MX Oil will be able to pre-qualify in the near term and will be viewed as a strong bidder in this round, thanks in part to the high standing of our local partner Geo, which has a proven track record of delivering key services to Pemex and other operators in Mexico. Furthermore, we are also progressing well in securing other assets outside of this bid round, which could complete before the formal rounds conclude," Chief Executive Stefan Olivier said in a statement.
Shares in MX Oil were trading up 5.5% at 4.56 pence Thursday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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