On 8 December 2017, the consortium of Iberoamericana de Hidrocaruburos, S.A. de C.V. and Servicios PJP4 de Mexico S.A. de C. V. signed the contract with the CNH and was granted official final awards for the CNH-RO2-L02-A1.BG/2017 contract from the CNH-RO2-LO2/2016 Bid Round.Â  The CNH-RO2-L02-A1.BG/2017 contract is also known as the Area 1 block.Â  The consortium formed a separate subsidiary, Iberoamericana de Hidrocaruburos CQ, Exploracion & Produccion de Mexico, S.A. de C.V. with 100% working interest as the official designated operating company for the block.Â  The 360.3 sq km CNH-RO2-L02-A1.BG/2017 contract has a total financial commitment of USD 14.2 million, all for work commitments that includes one extra well. On 12 July 2017, the consortium of Iberoamericana and Servicios PJP4 was the high bidder in the CNH-RO2-LO2/2016 Bid Round for the Area 1 block in the Burgos Basin and was granted a preliminary award. Â  For the 360.30 sq km Area 1 block the Iberoamericana consortium offered the minimum additional royalties of 3.91% and 1.0 work unit factor equivalent to one additional well.Â  There were no other bids for the block. Â It is estimated that the winning consortium is split 50%-50% but the final official equity breakdown will only be reported at a later date. The general license contract terms include a 1st exploration period of two years with the possibility of a two-year extension.Â  In the case of a discovery the operator can request a two-year evaluation phase for oil and a three-year evaluation phase for non-associated gas discoveries once the evaluation plan is approved.Â  The total contract term is for 30 years with the possibility of two five year extensions for a 40-year total contract term from signature date. The base royalty rate is a sliding scale royalty depending on type of hydrocarbon and oil price.Â  The values for oil range from 5% for USD 40/bbl oil to 25% for USD 200/bbl oil.Â  The relinquishment schedule is tied to exploration well commitments.Â  If the exploration period ends but the operator offers to drill an additional well it doesnât have to relinquish any area.Â  If the exploration period ends and the contractor doesnât have any discoveries it must relinquish 100%.Â  If the exploration period ends and the operator doesnât offer to drill an additional exploration well it will have to relinquish 50% of the area.Â  Local content during the exploration period is 26% for the exploration and evaluation period, and varies from 27% to 38% in the development period.
Mexico (Sureste B.) (It's a petroleum rights. Please summarize by yourself). In IHS database: 12 op. by LUKOIL (100.0%) to be check.14 op. by ENI SPA (60.0%, CITLA 40.0%) to be check.Area 1 (Tecoalli A) op. by ENI SPA (100.0%) to be check.Area 1 (Tecoalli B) op. by ENI SPA (100.0%) to be check.6 op. by PETRONAS (50.0%, ECOPETROL 50.0%) to be check.Area 1 (Mizton) op. by ENI SPA (100.0%) to be check.Area 1 (Amoca) op. by ENI SPA (100.0%) to be check.