On 8 December 2017, the consortium of Newpek Exploracion Y Extraccion, S.A. de C.V. and Verdad Exploration Mexico LLC signed the contracts with the CNH and was granted official final awards for the CNH-RO2-L03-BG-02/2017 and CNH-RO2-L03-BG-03/2017 contracts from the CNH-RO2-LO3/2016 Bid Round.Â  The CNH-RO2-L03-BG-02/2017 contract is also known as the Area 2, BG-02 block.Â  The CNH-RO2-L03-BG-03/2017 contract is also known as the Area 3, BG-03 block.Â  The consortium formed a separate subsidiary, Newpek Exploracion Y Extraccion, S.A. de C.V. with 50% working interest and Verdad Exploracion Mexico S.A. de C.V. with 50% working interest as the official designated operating consortium for the blocks.Â  The 162.95 sq km CNH-RO2-L03-BG-02/2017 contract has a total financial commitment of USD 27.98 million, USD 25 million in work commitments including two additional wells plus the tie-break bonus of USD 2.98 million.Â  The 199.60 sq km CNH-RO2-L03-BG-03/2017 contract has a total financial commitment of USD 4.7 million, all for work commitments that does not include any extra well. On 12 July 2017, the consortium of Newpek and Verdad Exploration was the high bidder in the CNH-RO2-LO3/2016 Bid Round for the Area 2 and Area 3 blocks in the Burgos Basin and was granted preliminary awards. Â  For the 162.95 sq km Area 2 block the Newpek consortium offered the maximum additional royalties of 25% and 1.5 work unit factor equivalent to two additional wells.Â  There were two other bids for the block and one offered the same royalties and work units so ended in a tie. The Newpek consortium won the tie break with a bonus bid of USD 2.98 million beating the 2nd place consortium of Petrosyergy and Quimica Apollo who offered a bonus of USD 1 million. Â  For the 199.6 sq km Area 3 block the Newpek consortium offered the maximum additional royalties of 25% and 0.0 work unit factor equivalent to no wells.Â  It won the block after the only other bid by Petrosyergy and Quimica Apollo was for 18.66 % royalties and 1.5 work units or two wells. Â It is estimated that the winning Newpek 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.Area 2 (Hokchi B) op. by HOKCHI EN (60.0%, EP HIDRO 40.0%) to be check.2 op. by PEMEX (50.0%, RWE 50.0%) to be check.6 op. by PETRONAS (50.0%, ECOPETROL 50.0%) to be check.Area 2 (Hokchi A) op. by HOKCHI EN (60.0%, EP HIDRO 40.0%) to be check.