Pemex Bids Overview
Foreign Pemex Bid Opportunities
Pemex offers bidding opportunities to foreign oil companies to invest in Mexico. Pemex is looking for technological partnerships with companies that have experience in mature fields, shallow waters, and deep waters. All of this in an effort to increase Pemex’s own production.
Pemex Bids Process
The basic bid procedure will be to open any selected association opportunities to a competitive bidding process regulated by different state entities.
Pemex has new bid models which include service contracts, license agreements, production sharing and profit contracts.
Under the service contract option, contractors will deliver the production to Mexico, and the contractor will be paid for its services from the generated funds and production.
The first round is a noncompetitive bidding called “Round Zero”. In this round, Pemex will study the bids, looking for a positive result for the company and the foreign investors.
The government of Mexico passed a constitutional reformation in December 2013 which was approved on August 2014 with secondary laws establishing new parameters for private investments.
Pemex committed to submitting its Round Zero requests for the fields it desires. Pemex Bids also identified properties for joint ventures/farm-in partners.
This reform for Pemex Bids look to improve business relationship for international oil companies. Under this legal frame Pemex is creating opportunities for foreign investors. This creates an opportunity for Pemex regarding oil exploration with new technologies and practices.
Pemex as the most important company of Mexico is seeking to improve the efficiency and new channels of revenue by opening bids to private companies that will bring new practices to oil exploration where Pemex has no previous experience or less experience than other companies.