Mexican-Argentine Group Submits Bid for Mision Block

Pemex said that a Mexican-Argentine consortium has submitted a technical proposal for the Mision Block tender. The current tender is the third Multiple Service Contract (MSC) granted for works related to development of non-associated gas reserves in the Burgos Basin in northern Mexico.

The bidding consortium is composed of Argentine company Tecpetrol, and Mexican company Industrial Perforadora de Campeche.

Industrial Perforadora de Campeche (IPC) is a Mexican oil drilling company that has been developing deep water and subterranean oil wells in Mexico since 1985. IPC operates 31 oil installations and 2 semisubmersible platforms located throughout the Gulf of Mexico region. IPC is a subsidiary of the Mexican conglomerate Grupo "R".

Tecpetrol is an Argentine Oil and Gas exploration and production company with operations in Argentina, Venezuela Ecuador, and Peru. Tecpetrol is a wholly owned subsidiary of the Techint Group, an international conglomerate whose Mexican subsidiary is also a member of the bidding consortium.

The presence of a Mexican company in yet another tender reaffirmed that domestic firms have a competitive place in the MSC process, and will play an important role in the development of natural gas in the Burgos Basin.

The formal technical proposal presentation, which was carried out by Pemex Exploration and Production (PEP) in accordance with the fully transparent tender procedure set forth in the Public Works Law, took place in the auditorium of Pemex's headquarters in the presence of a notary public, a public witness, and representatives of the Federal Controller's office.

The technical proposal will be reviewed, and, if it meets all specifications, the corresponding economic proposal will be opened, October 30. The contract award for the Mision block will be confirmed in an official ceremony tomorrow afternoon.

The Mision block spans 1,972 km² and comprises 21 separate gas fields in the States of Nuevo Leon and Tamaulipas. The winning contractor is expected to increase natural gas production in the Mision block from the current level of 35 million cubic feet per day to an estimated 91 million cubic feet per day over the life of the 20-year contract.

Mision is the third of seven separate blocks on offer in the Multiple Service Contract program, following the award of the Reynosa-Monterrey block to the Spanish company Repsol-YPF on October 16, and the award of the Cuervito Block to a Brazilian-Mexican-Japanese consortium on October 23.

Under the MSC program, Pemex expects to increase its capacity to carry out the Burgos Basin Project, which is designed to boost non-associated natural gas production in northern of Mexico, reduce imports, and help meet the increasing demand for natural gas in Mexico.