On May 29, 2015, the Comisión Nacional de Hidrocarburos (the “CNH”) released revised versions of the Bidding Guidelines (the “Guidelines”) and the Model Production Sharing Contract (the “PSC”) for the First Tender published on December 11, 2014 (the “First Tender”). The First Tender contains fourteen (14) exploration Contract Areas located in shallow waters in the Gulf of Mexico. Only a select group of companies will be able to benefit from these changes, however, as the deadline to qualify has passed. Next, is a list of the companies that have prequalified to participate in the First Tender....

This email alert discusses the most relevant changes in the Guidelines and Model PSC. The revised Model PSC appears to endeavor to centralize most interactions between the Contractor and the CNH, and significantly reduces the overall administrative burden on the Contractor. Overall, these modifications will have an immediate impact on the risk profiles for the shallow water projects and a long term effect on Mexico’s global competitiveness in future tenders.