Mexico modifies Ayin-Batsil bidding terms

Mexico's hydrocarbons regulator CNH announced modifications to the bidding rules for the Ayin-Batsilshallow water field, which is to be offered as a farm-out on October 4.

Ayin and Batsil lie at a depth of 160m and have total 3P reserves of 281Mboe, with 46Mb in the proven category, 77Mb probable and 158Mb possible, according to state oil firm Pemex.

In a meeting Tuesday, CNH's governing body ruled to extend the time limit from 90 to 180 days from the date of a hydrocarbons discovery for the company awarded the fields to present an evaluation plan. Within that limit, the contractor may also request an extension to present the discovery appraisal.

Changes were also made to the minimum work requirements regarding seismic surveys of the fields.

Federal oil company Pemex approved the shallow water farm-out process last October, as it plans to accelerate its farm-outs and partnerships to revert a decade-long decline in production as part of a five-year business plan announced last November.

The company said in March that it expects to start oil production with a private partner at the Ayin and Batsil fields in 2020, with output ramping up to 80,000b/d in subsequent years.

The video of Tuesday's CNH meeting can be viewed here.