Mexico’s state-run oil and gas company on Thursday called for its first exploration and production bids using multiple service contracts (MSCs), which will allow private companies to invest in an ambitious plan to increase country’s sagging natural gas production.

Petroleos Mexicanos (Pemex) on Thursday called for bids on the 10- to 20-year MSCs, which will allow private companies to explore for natural gas in the Burgos Basin, located in the northeast part of Mexico. The contracts were finalized earlier this year (see Daily GPI, Feb. 19), and companies have been given access to basin information. With the MSCs, Mexico will own the property and will remain over the domain of the hydrocarbons, controlling exploration and production. The contractor will receive a fee for the works performed and services rendered.

The first round of bids will be tendered on seven blocks. Pemex called for bids on four blocks on Thursday, and three more blocks will be announced within the next two weeks, Pemex said. Overall, the seven blocks cover a 13,300 square kilometer area, and their initial proved and probable reserves are estimated at 800 Bcf. For more information, visit www.pemex.gob.mx.

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