RnRMarketResearch.com
adds “Mexico Upstream Fiscal and Regulatory Report” report to its store. The
report presents the essential information relating to the terms which govern
investment into Mexico’s upstream oil and gas sector.
The report “Mexico
Upstream Fiscal and Regulatory Report ″ provides details of the new
contractual frameworks introduced under Mexico’s energy reforms, defining
factors affecting profitability and quantifying the state’s take from
hydrocarbon production. The report evaluates political, economic and
industry-specific variables and analyzes future trends for the country’s upstream
oil and gas investment climate. Complete report is available @ http://www.rnrmarketresearch.com/mexico-upstream-fiscal-and-regulatory-report-market-report.html
.
With Mexican oil open to private investment for the first time, the
country’s initial bidding round is expected to remain competitive despite low
oil prices, delays and a number of uncertainties. This latest report states
that the first bid round, which began on 11 December 2014 by offering 14
shallow-water exploration blocks, is currently scheduled to offer additional
areas, including unconventional and deepwater opportunities, in the first half
of 2015.
GlobalData’s Senior Upstream Analyst for the Americas, states that no
indication has been given of the expected levels of biddable profit oil in the
shallow-water Production Sharing Contract (PSC). Furthermore, full details of
the other contract models are yet to be released. With the international crude
oil price having dropped from nearly $110 per barrel (bbl) in the first half of
2014 to its current price of below $50 per bbl, the government has already been
forced to deviate from its original schedule. In the past week, the government
has admitted that it may need to further delay high-cost areas, such as
unconventionals. On top of this, the new schedule appears ambitious for a
regulatory agency organizing its first ever licensing round. Order a Purchase
copy of this report @ http://www.rnrmarketresearch.com/contacts/purchase?rname=307648 . (This
is a premium report priced at US$1000 for a single user License.)
“Scope of this report covers”: Overview of fiscal terms governing
upstream oil and gas operations in Mexico; Detail on legal framework and
governing bodies administering the industry; Levels of upfront payments and
taxation applicable to oil and gas production; Details of the licensing process
in ‘Round 1′; Explanation of production sharing mechanisms in Production
Sharing Agreements; Information on the special fiscal regime applicable to
PEMEX; Assessment of the fiscal regime’s attractiveness to investors; Outlook on future
of fiscal and regulatory terms in Mexico.
Despite these delays, Will Scargill, GlobalData’s Upstream Fiscal
Analyst, notes that the lower oil price should not significantly affect the competitiveness
of bidding on the shallow-water exploration blocks, as the adjustment of
royalties to prevailing prices and profit shares to profitability mean that it
should remain possible for investors to achieve attractive rates of return.
Comparison of the regime with that applicable to shallow-water areas in
the US Gulf of Mexico at oil prices of $60 to $80 per bbl suggests that bids
offering the government an initial 20% share of profit oil may be competitive.
When discovered fields are offered, the government take is likely to be higher
due to the lower risk. For deepwater areas later in the round, the government
is expected to offer royalty and tax licenses, reflecting the high costs and
risks associated with this type of exploration and development. Although the
full details of this contract model have not yet been disclosed, it is expected
to use a similar adjustment mechanism for the biddable additional royalty to
that used in the PSC.
Table of Contents
Regime Overview
Regime Flow Chart - Production/Profit Sharing Contract
Regime Flow Chart - Royalty and Tax License
Regime Flow Chart - Pemex Assignment Regime
Fiscal Take Assessment
Key Fiscal Terms - Production/Profit Sharing Contract
Key Fiscal Terms - Royalty and Tax License
Key Fiscal Terms - Pemex Assignments Regime
Regulation and Licensing
Outlook
Contact Information
List of Tables
Mexico, Contractual Price for Crude Oil, Round 1 - Shallow Water (First Call)
Mexico - Pemex Assignment Regime, Profit Sharing Duty Rates (%), 2015 onwards
Mexico, Round 1 - Shallow Water (First Call), Schedule, 2014
Mexico, Round 1 - Shallow Water (First Call), Minimum Work Obligations, 2014
List of Figures
Regime Flow Chart - Production/Profit Sharing Contract
Regime Flow Chart - Royalty and Tax License
Regime Flow Chart - Pemex Assignment Regime
Mexico, PSA Bid Comparison - 30mmboe field (Oil price: US$60/bbl. CAPEX: US$12/boe. OPEX: US$8/boe), 2014
Mexico, Indicative NPV10/boe and Fiscal Take Comparison, Regional Peers
Legal Framework
Institutional Framework
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