On 2 October 2019, Shell was granted approval by the CNH to farm-out 40% working interest to Chevron in the CNH-R02-L04-AP-CS-G01/2018, CNH-R02-L04-AP-CS-G02/2018, CNH-R02-L04-AP-CS-G04/2018 contracts in the ultra-deep-water Campeche Deep Sea Basin.     Shell held 100% in all the      contracts.   Shell remains the operator and      holds 60% working interest and Chevron has 40% working interest after the      formal approval.  The CNH was first notified      regarding the deal on 3 July 2019.   Shell has been granted approval      for all of the exploration plans associated with these three contracts in      June 2019.   There are three firm commitment      wells for these contracts and three contingent commitment wells.   On 13 June 2019, Shell was granted approval by the CNH for the first exploration plan related to the CNH-R02-L04-AP-CS-G02/2018 contract, Area 21, AP-CS-G02 block that includes geophysical and geological studies as well as the drilling of one firm commitment exploration well with an incremental case of drilling a second exploration well.  On 13 June 2019, Shell was granted approval by the CNH for the first exploration plan related to the CNH-R02-L04-AP-CS-G04/2018 contract, Area 23, AP-CS-G04 block that includes geophysical and geological studies as well as the drilling of one firm commitment exploration well with an incremental case of drilling a second exploration well.  On 11 June 2019, Shell was granted approval by the CNH for the first exploration plan related to the CNH-R02-L04-AP-CS-G01/2018 contract, Area 20, AP-CS-G01 block that includes geophysical and geological studies as well as the drilling of one firm commitment exploration well with an incremental case of drilling a second exploration well.  On 7 May 2018, Shell was granted an official award for the CNH-R02-L04-AP-CS-G01/2018 contract, the 2,079.50 sq km Area 20, AP-CS-G01 block. For the Area 20 block, the company bid 20% of additional royalties over the minimum of 5%, 2.0 work units factor equivalent to two wells, and a tie-break bonus of USD 90.15 million. There was one other bid for the block by PEMEX who bid 6.11% additional royalties and no additional work units factor.  On 7 May 2018, Shell was granted an official award for the CNH-R02-L04-AP-CS-G02/2018 contract, the 2,029.74 sq km Area 21, AP-CS-G02 block. For the Area 21 block, the company bid 20% of additional royalties over the minimum of 5%, 2.0 work units factor equivalent to two wells, and a tie-break bonus of USD 110.15 million representing the second highest tie-break bonus in the round. There were four other bids for the block.The second-place bid was made by the consortium of Chevron, PEMEX, and ONGC who bid the maximum additional royalties and 2.0 additional work units factor but lost the tie-break bonus offering USD 42.1 million.  On 7 May 2018, Shell was granted an official award for the CNH-R02-L04-AP-CS-G04/2018 contract, the 1,852.86 sq km Area 23, AP-CS-G04 block. For the Area 23 block, the company bid 10.08% of additional royalties over the minimum of 5%, 1.0 work units factor equivalent to one well. There was one other bid for the block by the consortium of Chevron, PEMEX, and Inpex who bid 13.44% additional royalties but no additional work units factor.
Shell farm-out 40% WI to Chevron in the CNH-R02-L04-AP-CS-G01/2018, CNH-R02-L04-AP-CS-G02/2018, CNH-R02-L04-AP-CS-G04/2018 contracts in the ultra-DW Basin. Shell held 100% in all the contracts. Shell remains the operator and holds 60% working interest and Chevron has 40% working interest after the formal approval.