July 13, 2017

ENERGY ALERT Bids for Rounds 2.2 and 2.3 “Exploration and Extraction in Onshore Blocks” took place on July 12, 2017. The bids for Mexico’s Round 2 Phases 2 and 3 (Onshore blocks) took place on July 12th, 2017. For Round 2.2, out of the 9 prequalified companies (4 individual bidders and 5 consortiums), 6 bidders were registered for the proposal opening act. This Round included 10 blocks to be awarded under a License Contract regime, 7 of which received economic proposals and 3 had no takers. The chart below includes a summary of the results of the bid: Round 2 - Second Call Contractual Area

Bidder

Over Royalty

1

Iberoamericana de Hidrocarburos, S.A. de C.V. Servicios PJP4 de México, S.A. de C.V.

3.91%

2

No Bids Submitted

 

3

No Bids Submitted 25.00%

Iberoamericana de Hidrocarburos, S.A. de C.V. Newpek Exploracion y Extraccion, S.A. de C.V. Verdad Exploration Mexico LLC

15.76%

Sun God Energia de Mexico, S.A. de C.V. Jaguar Exploracion y Produccion de Hidrocarburos, S.A.P.I. de C.V.

16.96%

Iberoamericana de Hidrocarburos, S.A. de C.V. Servicios PJP4 de México, S.A. de C.V.

8.09%

No Bids Submitted

 

Sun God Energia de Mexico, S.A. de C.V. Jaguar Exploracion y Produccion de Hidrocarburos, S.A.P.I. de C.V.

25.00%

Newpek Exploracion y Extraccion, S.A. de C.V. Verdad Exploration Mexico LLC

25.00%

8

Sun God Energia de Mexico, S.A. de C.V. Jaguar Exploracion y Produccion de Hidrocarburos, S.A.P.I. de C.V.

25.00%

9

Sun God Energia de Mexico, S.A. de C.V. Jaguar Exploracion y Produccion de Hidrocarburos, S.A.P.I. de C.V.

25.00%

Sun God Energia de Mexico, S.A. de C.V. Jaguar Exploracion y Produccion de Hidrocarburos, S.A.P.I. de C.V.

45.00%

Perseus Exploración Terrestre, S.A. de C.V.

8.88%

5

6

7

10

Economic Bid Value

1.00

5.535

 

 

Cash Payment (USD)      

Sun God Energia de Mexico, S.A. de C.V. Jaguar Exploracion y Produccion de Hidrocarburos, S.A.P.I. de C.V. 4

Investment Factor

1.50

29.826

1.00

18.279

-

16.960

1.00

10.030

 

 

1.50

29.826

1.50

29.826

1.50

29.826

1.50

29.826

1.50

52.091 -

8.880

 

 

 

    $ 4,130,000.00

$ 2,920,001.01

 

 

 

 

In the other hand, for Round 2.3, out of the 19 prequalified companies (11 individual bidders and 8 consortiums), 17 bidders were registered for the proposal opening act. For this Round, the 14 blocks to were awarded under the License Contract regime. The chart below includes a summary of the results of the bid: Round 2 - Third Call Contractual Area

1

2

3

4

Bidder

Over Royalty

Iberoamericana de Hidrocarburos, S.A. de C.V. Servicios PJP4 de México, S.A. de C.V.

25.00%

Shangdong Kerui Oilfield Service Group Co. Ltd Sicoval MX, S.A. de C.V. Nuevas Soluciones Energeticas A&P, S.A. de C.V.

25.00%

Newpek Exploracion y Extraccion, S.A. de C.V. Verdad Exploration Mexico LLC

25.00%

Petrosynergy, S.A. de C.V. Quimica Apollo, S.A. de C.V.

25.00%

Newpek Exploracion y Extraccion, S.A. de C.V. Verdad Exploration Mexico LLC

23.56%

Petrosynergy, S.A. de C.V. Quimica Apollo, S.A. de C.V.

18.66%

Iberoamericana de Hidrocarburos, S.A. de C.V. Servicios PJP4 de México, S.A. de C.V.

3.91%

Jaguar Exploración y Producción de Hidrocarburos, S.A.P.I. de C.V

40.00%

DEP PYG, S.A.P.I de C.V.

40.00%

Shangdong Kerui Oilfield Service Group Co. Ltd Sicoval MX, S.A. de C.V. Nuevas Soluciones Energeticas A&P, S.A. de C.V.

40.00%

Roma Exploration and Production LLC Tubular Technology, S.A. de C.V. Suministros Marinos e Industriales de Mexico S.A. de C.V. Golfo Suplemento Latino, S.A. de C.V.

40.00%

Jaguar Exploración y Producción de Hidrocarburos, S.A.P.I. de C.V.

40.00%

Petrosynergy, S.A. de C.V. Quimica Apollo, S.A. de C.V.

25.66%

Jaguar Exploración y Producción de Hidrocarburos, S.A.P.I. de C.V.

40.00%

Jaguar Exploración y Producción de Hidrocarburos, S.A.P.I. de C.V.

45.00%

Promotora y Operadora de Infraestructura, S.A.B. de C.V. Consorcio Petrolero 5M del Golgo S.A.P.I. de C.V.

45.00%

Shangdong Kerui Oilfield Service Group Co. Ltd Sicoval MX, S.A. de C.V. Nuevas Soluciones Energeticas A&P, S.A. de C.V.

40.00%

DEP PYG, S.A.P.I de C.V.

22.51%

Shangdong Kerui Oilfield Service Group Co. Ltd Sicoval MX, S.A. de C.V. Nuevas Soluciones Energeticas A&P, S.A. de C.V.

45.00%

Tonalli Energía, S.A.P.I. de C.V.

33.30%

Carso Oil and Gas, S.A. de C.V.

45.00%

Shangdong Kerui Oilfield Service Group Co. Ltd Sicoval MX, S.A. de C.V. Nuevas Soluciones Energeticas A&P, S.A. de C.V.

45.00%

Carso Oil and Gas, S.A. de C.V.

40.00%

Shangdong Kerui Oilfield Service Group Co. Ltd Sicoval MX, S.A. de C.V. Nuevas Soluciones Energeticas A&P, S.A. de C.V.

40.00%

Jaguar Exploración y Producción de Hidrocarburos, S.A.P.I. de C.V.

40.00%

Perseus Exploración Terrestre, S.A. de C.V.

40.00%

5

6

7

8

Investment Factor

Economic Bid Value

1.5

1.5

1.5

1.5 -

1.5

1.0

1.5 1.5

1.5

1.5

1.5 1.5

1.5

1.5

Cash Payment (USD)

29.826

$4,237,264.00

29.826

$3,193,000.00

29.826

$2,980,002.02

29.826

$1,000,066.66

23.560

 

22.768

 

5.535

 

46.525

$26,100,000.00

46.525

$5,002,019.00

46.525

$2,179,000.00

46.525

$1,500,061.00

46.525

 

30.560

 

46.525

 

52.091

$28,890,000.00

52.091

$10,117,000.00

9

10

11

12

13

14

1.5

1.5 -

1.5 1.5

1.5

1.5

1.5

1.5 1.0

46.525

 

22.510

 

52.091

 

33.300

 

52.091

$6,182,000.00

52.091

$2,179,000.00

46.525

$13,170,000.00

46.525

$2,350,000.00

46.525

 

44.350

 

For both calls, in accordance with the Bidding Guidelines, Contract Awarding Resolution shall be published in the Mexican Official Gazette on July 14, at the latest, and within 140 days of said publication, the Contracts shall be executed. It’s worth mentioning that the first and second place on each block, should maintain valid the Bid Bond for a period of 150 days after the bidding day. Lastly, it is worth mentioning that the untie mechanism (upfront cash payment) was applied to 8 Blocks (one in Round 2.2 and the rest in Round 2.3) since the bid offer of Over Royalty and Additional Investment commitment (i.e. Investment factor) was equal among the bidders. In this regard, the Government will be collecting upfront $88 million USD out of cash payments from said untie mechanism. According to the Ministry of Energy, an investment of $2.064 billion USD is expected within the next 30 years as a result of the 21 Contracts awarded in these Rounds.

Contacts: Alfredo Álvarez [email protected] Rodrigo Ochoa [email protected] Enrique Pérez-Grovas [email protected] Javier Noguez [email protected] Rodrigo Mondragón [email protected] Jimena González de Cossío [email protected] José Fano [email protected] Yuri Barrueco [email protected] Elizabeth Ceballos [email protected] Salvador Meljem [email protected]