Farmouts, Strategic Elements to Complement Operations Capacities and Strengthen Pemex’ Finances

Petróleos Mexicanos is decidedly betting on farmouts or partnerships that will allow the company to complement its operating capacities and to share financial, technological, and geological risks, so as to stabilize and gradually increase its production. These partnerships will increase the availability of resources to accelerate the company’s financial recovery, as they are in alignment with the 2017-2021 Business Plan, which is focused on the company’s profitability.

Currently, four farmouts both on shore as well as on sea, are undergoing the bidding process. The corresponding partnership processes have been authorized by the Pemex Board of Directors, for the development of the blocks: Nobilis-Maximino in deep waters; Ayin-Batsil in shallow waters, and the mature in-land fields of Ogarrio and Cárdenas-Mora.

With the purpose of finding new allies and promoting the participation of potential partners in its farmouts’ bidding processes, today Pemex held Farmout Day in the City of Houston. There was a wide-ranging attendance, with representatives of 116 companies, including oil and service companies, financial institutions, research centers, trade chambers, and consulting firms. Among the registered operators, several  companies showed their interest in past rounds, and today they were able to verify that a partnership with Petróleos Mexicanos is the best investment option in the country, due to Pemex’s experience and profound knowledge of the areas and attractiveness of these projects.

During the inauguration, Pemex CEO, José Antonio González Anaya, pointed out that Petróleos Mexicanos is the most attractive partner in Mexico for the leading companies of the international oil industry. He stated that Pemex continues to incorporate the best international practices to strengthen its operations. Partnerships, he said, are essential for the new direction of the company, as they will let it make use of the technological advantages of its partners and become more efficient in its execution, production, and investment projects.

Likewise, the event had the participation of the president of the National Hydrocarbons Commission, Juan Carlos Zepeda; the deputy secretary of the Ministry of Energy, Aldo Flores, and the Deputy Secretary of Income of the SHCP (the Mexican Ministry of Finance and Public Credit), Miguel Messmacher. The technical sessions were headed by Pemex’s Legal Director, Jorge Kim; the Director of Exploration, Antonio Escalera, and the Director of Resources, Reserves and Partnerships of Pemex Exploración y Producción, Gustavo Hernández. The technical characteristics of the mentioned blocks were covered, as well as the Legal and fiscal aspects of the future partnership contracts and the adjudication mechanisms. Afterwards, Pemex specialists expounded on the specific details of each block and answered the questions from the participants in attendance.

For the farmouts of Ayin-Batsil, Cárdenas-Mora and Ogarrio, applications for access to the data room will be accepted until July 25. The closing date for inscription and application for a prequalification meeting will be on the 28th of this month. Submission of bids and the final results will take place on October 4. The CNH (National Hydrocarbons Commission) will publish the call for bids corresponding to the Nobilis-Maximino shortly.