PEMEX selects IndigoPool to host initial Mexico Multiple Service Contract roundNews // March 28, 2003
The MSCs provide an unprecedented opportunity for Mexico to maximize the economic value of its natural gas reserves in the long term, while providing interested foreign investors with access to the gas-rich Burgos Basin region in northern Mexico. Services for eight blocks of varying size, located in proven basins with upside potential, are on offer. The MSCs encourage the exploration of low permeability developments and the identification of deeper basin developments, and promote the creation of the infrastructure necessary for increased production.
"In this phase, before the bidding process, basic information is available through two methods," said Sergio Guaso, executive director, MSC Project, Pemex Exploration and Production (PEMEX E&P). "Interested companies can request an appointment to visit the physical data room in Reynosa, Mexico, or they can register to view and evaluate logs, production information and seismic information via the online data rooms on the IndigoPool web site at http://www.indigopool.com, reducing travel requirements."
Prior to visiting the physical data room in Reynosa, PEMEX E&P strongly recommends a thorough review of the information in the online data rooms, which is offered by block and play. This will optimize the review process and will allow interested companies to make adequate use of their time when visiting the physical data room.
Under the agreements, PEMEX expects gas production to increase by 1 BCFD and new reserves to be identified to meet the fast-growing demands of the domestic gas market in Mexico. Current demand is expected to grow from 4.3 BCFD to 9 BCFD over the next 10years. The expected production increases will supply the majority of domestic requirements, a key objective for the Mexican administration. Currently, production measures 130 MMCFD from 150 wells. The expected remaining potential of the reserves is 4 TCF.
"The Burgos Basin represents an attractive option for a range of companies, from small independents to large multinationals," said Jeremy Walker, president, IndigoPool. "A benefit to many is the proximity of these opportunities to the south Texas region,where the geological plays are already well-known and exploration activity has had significant long-term success."
This initial phase of the MSC process provides 35 Gb of information on the eight blocks, averaging 1600 km2 with the number of parcels available in each block ranging from three to 67. Investigation by interested companies at this stage will lead to thesale of the bid package ("Bases de Licitación"), which will include data for each block in the coming months.