26 Oil Companies Pre-qualify to Bid for Drilling Rights in Mexico
Mexico’s National Hydrocarbons Commission has published the list of prequalified participants for the Production Sharing Contracts for Exploration and Production of Hydrocarbons over 14 Shallow Water blocks.
After announcing the opportunity and bidding guidelines in December of 2014, the National Hydrocarbons Commission has selected 26 companies (both individuals and consortia) to receive a prequalification certificate. The companies will now be able to submit bids on July 15th, 2015.
Among those who received their prequalification certificates were private equity-backed Houston-based Talos Energy LLC and Mexico City-based Sierra Oil & Gas S. de R.L. de C.V. Apllo Global Management and Riverstone Holdings back Talos, and Riverstone and EnCap Investments back Sierra. Together with Glencore E&P Ltd. (Switzerland), the three companies have formed a consortium for the bidding process.
In 2014, Riverstone co-founder David Leuschen said the firm was considering opportunities for production operations (onshore and offshore) in Mexico because the Gulf of Mexico can offer significant potential for deep-water drilling and production.
The Mexican government is working to reform its national oil company, Pemex. Their efforts are providing great prospects for foreign investors, some of which could be the biggest opportunities for these investors in decades. Private equity-backed companies, including Riverstone, have commented on their desire to capitalize on these opportunities.
With the first round of bidding scheduled for July 15th, they just might be successful in investing sooner rather than later.