Pemex Comes Up Empty on 5th Burgos Basin Tender

Pemex did not receive any bids on Wednesday for the fifth contract it's tendering to produce natural gas in the Burgos basin of northeastern Mexico.

The companies that bought data packages for the Ricos block were ExxonMobil and Total SA, both of which bought packages for earlier blocks but didn't bid.

Pemex's maximum price for the Ricos block was about $2 billion, said Sergio Guaso, the head of the multiple service contracts program under which Pemex hopes to raise natural gas output at Burgos to 2 billion cubic feet a day in 2006 from 1 Bcf/d at present.
Last week, Pemex canceled the tender for the $3.56 billion Corindon-Pandura block, also after receiving no bids.

Pemex plans to review the terms and technical aspects of the two blocks. The company could modify the scope of the blocks and tender them again, or even award the contracts directly without a tender process.

Guaso said four groups are eligible to bid next week for the Fronterizo block, and that Pemex is confident of receiving a bid. The date for bidding on the seventh block, Olmos, has been moved back to mid-January. Pemex awarded contracts for the first three blocks, which will involve combined investment of $3.7 billion over the 20-year life of the contracts, contributing 350 million cubic feet a day to production.

Among the winners of the first three blocks are Repsol YPF SA, Italian-Argentine concern Techint, and Petrobras.

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